DJE - Asia High Dividend PA (EUR)
- As at:
- 204.76 EUR
- 215.00 EUR
All Asian stock markets, with the exception of India, reported positive results in June. The equity markets received a tailwind from the central banks: the Chinese central bank announced that its scope for further adjustments to its monetary policy was "enormous" (at a current key interest rate of 4.35%). The US Federal Reserve, on the other hand, announced its willingness to react in order to support the US economy during the trade conflict between the US and China. Most market participants then assumed that the Fed could possibly cut key rates in three steps by the end of the year. In addition hopes of a minimal consensus regarding the US-China trade dispute returned as US President Trump announced a meeting with Chinese President Xi at the G20 summit in July and a follow-up of the talks interrupted at the end of May. In this market environment the price of the DJE - Asia High Dividend rose 2.84%. Its benchmark index (MSCI Daily TR AC Far East Ex Japan) gained 5.58%. After the heavy losses in May all sectors of the Asian investment region closed June with price gains. The sectors that performed relatively best, i.e. with the strongest price gains, were industry, retail (both currently overweighted investment focuses of the fund) and insurance (currently no investment focus of the fund, therefore somewhat underweighted). The travel & leisure (currently overweighted investment focus), oil & gas and financial services (both not investment focuses of the fund, therefore underweighted) sectors in particular performed below average, i.e. with lower price gains. Overall, the sector weighting thus had a moderately positive effect on fund prices in June compared with the benchmark index. At the level of individual stocks the highest performance contributions came from investments in the Japanese mechanical engineering company DMG Mori, the Chinese jewellery and gold trader Chow Tai Fook and the pan-Asian insurance group AIA based in Amsterdam. On the other hand, positions at the Chinese toiletries manufacturer Vinda, the Hong Kong real estate company Great Eagle and the Chinese technology company Xinyi Solar had a negative impact. During the month the fund management increased the investment ratio from 83.99% to 98.15%. At sector level the weightings in the retail, industrial and insurance sectors were increased. In return the fund management slightly reduced its exposure to the real estate sector. Regionally the proportion of Chinese stocks listed in Hong Kong or the USA and Japanese stocks were increased. Anyway, no country was significantly reduced. At the end of the month some Hong Kong and Singapore dollar denominated securities were hedged.