DJE - Zins & Dividende PA (EUR) Header Image
As at:
149.02 EUR
154.98 EUR

Monthly Commentary

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. In Europe, the British government and the EU surprisingly agreed on a Brexit agreement, which also had a positive effect on the mood on the stock markets. Expectations of a further interest rate cut by the US Federal Reserve (Fed) also boosted equity markets. At the end of October, the Fed cut key interest rates by 25 basis points to between 1.50% and 1.75%. As a result, the US dollar depreciated by just under 2% against the euro, and the gold price rose from USD 1,474 to USD 1,510 per troy ounce. On the other hand, the majority of economic indicators in the USA, the euro zone and China declined. The consolidation phase on the bond markets continued in October. Yields on high-quality 10-year government bonds rose slightly in the euro zone and the USA. In this market environment, the value of the DJE – Zins & Dividende fell by -0.15%. In October, the majority of the sectors of the MSCI World developed positively, but more than a third ended the month with price losses. The highest price gains were recorded in the automotive, healthcare, construction & materials and technology sectors. On the other hand, the food & beverage, oil & gas, travel & leisure, utilities, media and insurance sectors, among others, suffered higher price losses. The Fund's performance was adversely affected primarily by its positions in the Food & Beverages (currently overweight in the Fund's investment focus) and Oil & Gas (currently underweight in the Fund) sectors. At the level of individual stocks, the French food group Danone, the Munich payment service provider Wirecard and the US chemicals group Albemarle, for example, were disappointing. On the other hand, the fund benefited above all from its exposure to the automotive (slightly overweighted) and construction & materials (currently overweighted investment focus of the fund) sectors. Valuable individual securities contributions included Hong Kong laminate producer Kingboard Holdings, Taiwan semiconductor manufacturer Taiwan Semiconductor from Taiwan and the US IT group Apple. Over the course of the month, the fund management reduced its holdings in the food & beverages, healthcare and oil & gas sectors, among others. On the other hand, it expanded positions in the credit institutions, construction & materials and insurance sectors. At the country level, it reduced its positions in Great Britain and the USA. On the other hand, it expanded its positions in Europe, including Germany and France. On the bond side, US government bonds were reduced and Chinese government bonds were bought due to higher yield expectations. As a result of the adjustments, the fund's equity exposure rose from 46.24% in the previous month to 49.36%. The bond ratio fell slightly from 51.02% to 49.49%. The cash ratio declined from 2.74% to 1.15% in the previous month. At the end of the month, the US dollar was hedged against the euro.

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Figures subject to revision by the auditors on the reporting dates. The published information does not constitute investment advice or a recommendation, but only provides a brief summary of the key features of the fund. The current sales documents (Key Investor Information Document, prospectus, annual report and – if the annual report is older than eight months – the semi-annual report) for the respective investment funds form the sole basis for the purchase of securities. The sales documents are available at no charge at the respective fund company, the distribution company or at All data and estimates are indicative and may change at any time. This information is based on our assessment of current legal and tax regulations. The data were carefully compiled, but no guarantee can be given for the accuracy of such information. All data are subject to change. The performance is calculated using the BVI (Bundesverband Investment und Asset Management e.V.) method, i.e. without taking into account the subscription fee. Individual expenses such as fees, commissions and other charges are not taken into account in the data and would have a detrimental effect on the performance if they were. The subscription fees payable reduce the invested capital as well as the performance depicted. Data on past performance are not a reliable indicator of future performance. The tax treatment depends on the individual circumstances of the investor and may be subject to change. Please see the prospectus for more detailed tax information. In connection with brokering fund units, the Dr. Jens Ehrhardt Group and its distribution partners may receive reimbursements from costs charged to the funds by the investment companies in accordance with the respective prospectuses. The units of this fund that are issued may only be sold or offered for sale in jurisdictions in which such offer or sale is permitted. Therefore the units of this fund may not be offered for sale or sold in the USA, or offered for sale or sold to or for the account of US citizens or US persons resident in the USA. This document and the information it contains may not be distributed in the USA. The distribution and publication of this document and the offer or sale of units may also be subject to restrictions in other jurisdictions.

*) © 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.