DJE - Zins & Dividende PA (EUR)
- As at:
- 145.64 EUR
- 151.47 EUR
Positive monetary signals for the stock markets emerged in July. The European Central Bank announced that it would leave key interest rates at 0% or possibly lower them further, and showed itself ready for a new bond purchase program. In the US the Federal Reserve lowered key rates by 25 basis points to a range of 2.00% to 2.25% for the first time in ten years as widely expected by the markets. In addition the resumption of trade talks between the US and China had a positive impact on the market sentiment as had merger and acquisition activity on both sides of the Atlantic. On the other hand the vast majority of economic data in Europe fell short of expectations. The purchasing managers' indices for Germany and the euro zone continued to fall and reached their lowest level in six years. In Germany new orders and industrial production were well below the previous year's levels and various profit warnings from DAX groups depressed sentiment on the stock market. In addition the probability of a Brexit without an agreement increased. In return yields on 10-year German government bonds fell further by twelve basis points to -0.44%, and gold rose 3.01% to 1,276.46 euro/ounce. In this market environment the DJE - Zins & Dividende gained 0.79%. In July most equity sectors of the MSCI World Index performed moderately to well with the exception of commodities and oil & gas which recorded losses. The strongest value contributions to the overall performance of the fund came from the food & beverage and travel & leisure sector which were among the relatively best sectors with the strongest price gains. The US investment company Blackstone, the US system catering company Starbucks and the French beverage and food group Danone, among others, contributed strong individual share contributions. On the other hand negative impetus came primarily from the raw materials and banking sectors. At the level of individual stocks, for example, the Swiss chemical industry company Sika, the Kassel-based mining company K+S and the Walldorf-based software producer SAP disappointed. Over the course of the month the fund management increased the weighting of the food & beverage sector in particular and also slightly increased the weighting of the technology and chemicals sectors. On the other hand, it reduced the industrial, media and real estate sectors. Regionally it reduced its China position (including Hong Kong) and Europe (including Germany and the United Kingdom). In return the fund management increased its exposure in the USA and France. In the course of the month the fund management added various medium-term German corporate bonds to the bond portfolio. As a result of these adjustments the fund's equity exposure fell slightly from 48.52% previous month to 48.35%. The bond ratio also fell slightly from 49.89% previous month to 49.71%. The cash ratio increased from 1.59% to 1.94%.