DJE - Asia High Dividend XP (EUR)
- As at:
- 255.29 EUR
- 255.29 EUR
With few exceptions the international stock markets gained in December. A key factor in this respect was the "Phase One" trade agreement that the USA and China agreed on. It essentially means that the US will refrain from the introduction of various announced import duties and that China will import more agricultural goods from the US. Several encouraging signals came from China in December. For example, the purchasing managers' index for industry reached a three-year high of 51.8 points. In addition the growth in industrial production rose to 5.4% year-on-year and was in positive territory for the first time in a long time. Retail sales also climbed to 8.0%. However, exports declined slightly and there was a record default rate (4.9%) on Chinese corporate bonds. In Japan, the government launched a fiscal program to drive economic growth. In this market environment the DJE - Asia High Dividend rose 3.12%. Its benchmark index (MSCI Daily TR AC Far East Ex Japan) increased 5.74% in euro terms. In December, all sectors of the Asian investment region performed well. The best performing sectors in relative terms, i.e. with the highest gains in local currency, were technology (currently underweight in the fund as most technology companies do not pay dividends), telecommunications (currently underweight), real estate (currently underweight) and construction & materials (currently overweight). Overall, the sector weighting thus had a largely negative impact on the fund's performance against the benchmark in December. Viewing individual stocks the highest performance contributions came from the holdings in Taiwanese chip order manufacturer Taiwan Semiconductor Manufacturing, Hong Kong composites producer Kingboard Laminates, Chinese e-commerce company Alibaba and Japanese airport operator Japan Airports Terminal. On the other hand, the positions at the Thai power producer Electricity Generating Public, the Japanese beverage producer Suntory Beverage & Food and the Japanese railroad company West Japan Railways had a negative impact. At sector level portfolio weightings in the technology, chemicals, industrial and retail sectors were increased. Nevertheless the sectors travel & leisure and utilities were particularly reduced. Regionally the share of Chinese stocks listed in Hong Kong and the share of Japanese stocks increased slightly. The proportion of Thai stocks was slightly reduced. The fund management increased the investment ratio slightly and was fully invested at the end of the month. Stocks denominated in Hong Kong dollars were partially currency-hedged at the end of the month.