DJE - Zins & Dividende PA (EUR)
- As at:
- 150.59 EUR
- 156.61 EUR
In December the international stock markets gained with few exceptions. Nevertheless the bond markets were under pressure as reflected by the yields on high-quality 10-year government bonds. Their yield rose from -0.36% to -0.19% in Germany and from 1.81% to 1.92% in the USA. A key factor of the rising equity markets was the "Phase One" trade agreement that the USA and China have agreed on and which is to be signed in mid-January. It will result in China's increasing imports of US agricultural products and the US refraining from various previously announced import tariffs. In Europe market participants also reacted positively to the Conservative victory in the British general election. In Germany the ifo business climate index improved again but various German and European economic indicators continued to disappoint. In this market environment the value of the DJE - Zins & Dividende rose 0.82%. In December almost all sectors of the global stock market developed positively. Only the sectors utilities and real estate recorded slight price losses in the month under review. The technology, financial services, media, healthcare and industrial sectors achieved the highest price gains. The fund benefited in particular from its positions in the sectors retail (currently underweight in the fund) and financial services (overweight in the fund). The most encouraging individual stock contributions came from the Taiwanese semiconductor manufacturer Taiwan Semiconductor, the US technology group Apple and the US hotel and entertainment company Las Vegas Sands, among others. On the other hand investments into sectors telecommunication (slightly underweight in the fund) and automotive (slightly overweight in the fund) adversely affected the fund's performance. Viewing individual stocks the French automotive supplier Valeo, the US media company Walt Disney and Deutsche Lufthansa performed disappointing. During the month the fund management reduced its investments in the food & beverages and telecommunications sector, among others. Nevertheless, it increased positions in the technology and industrial sectors. Regionally the fund reduced its German and France allocation, among others. On the other hand, it increased its positions in the USA and China (including Hong Kong). On the bond side it invested in US government bonds. Because of these adjustments the fund's bond ratio rose slightly while the equity ratio remained almost stable. At the end of the month the US dollar was hedged against the euro.