DJE - Asia High Dividend PA (EUR)
- As at:
- 204.39 EUR
- 214.61 EUR
In October, the international stock markets performed largely satisfactorily. The markets were driven above all by expectations of a provisional settlement in the trade conflict between the USA and China, although the important issues of subsidies and Chinese state-owned companies were left out of the equation. At the end of October, the Fed cut key interest rates by 25 basis points to between 1.50% and 1.75%. In China, industrial production grew by 5.8% and retail sales by 7.8% year-on-year. On the other hand, some economic indicators in China declined. The purchasing managers' index for industry fell slightly from 49.8 to 49.3 points, and exports shrank by 3.2% year-on-year. In this market environment, the DJE - Asia High Dividend fund price rose by 2.14%. Its benchmark index (MSCI Daily TR AC Far East Ex Japan) rose by 2.29% in euro terms. In October, most sectors in the Asian investment region made gains. The sectors that performed relatively best, i.e. with the highest price gains in local currency, were healthcare (currently underweighted sector of the fund), cyclical consumer spending (currently overweighted in the fund), technology (currently underweighted in the fund as most technology companies do not pay dividends) and real estate (currently neutrally weighted in the fund). The telecommunications sector (currently underweighted sector of the fund) performed below average, i.e. with price losses. Overall, the sector weighting thus had a negative impact on the fund price development compared with the benchmark index in October. At the level of individual stocks, the highest performance contributions came from the investments in the Hong Kong chemicals group Kingboard Laminates, the chip contract manufacturer Taiwan Semiconductor Manufacturing and the Hong Kong conglomerate Guangdong Investment. On the other hand, positions in the Chinese infrastructure company Zhejiang Expressway, the Hong Kong real estate company Great Eagle and the Thai power producer Electricity Generating had a negative impact. Over the course of the month, the fund management increased the investment ratio from 92.78% in the previous month to 99.60%. At sector level, the weightings in the real estate, chemicals and media sectors were reduced, among other things. In return, the sectors technology, industry, financial services, travel & leisure and automobiles were expanded. At the country level, both the share of Chinese stocks listed in Hong Kong and the share of Chinese stocks listed in the USA remained virtually unchanged. The share of Japanese stocks was increased and the shares of Indian and South Korean stocks were also slightly increased. As of the end of the month, stocks denominated in Hong Kong dollars were partly hedged.