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