DJE - Dividende & Substanz PA (EUR)
- As at:
- 143.54 EUR
- 150.72 EUR
Stock markets initially performed well in July, but lost their gains in Europe and Asia in the second half of the month. Corona continued to dominate the scene on one hand with confident reports on vaccine development and on the other hand with new infection rates rising again. In addition the negative figures for economic growth showed the extent to which the pandemic had slowed down the economy in the second quarter. Nevertheless some leading indicators, such as the purchasing managers' indices in Germany, the euro zone and the USA, which are now signaling an expansive economy again, were encouraging. In this market environment the price of the DJE - Dividende & Substanz rose 1.97%. Its benchmark index MSCI World fell -0.57% on Euro basis. In July only five sectors of the global stock market performed positive: the highest price gains were recorded by the sectors basic materials and retail. Other sectors with moderately positive results were utilities, food & beverage and technology. But the remaining sectors suffered price declines. The biggest losses were recorded by the sectors oil & gas and travel & leisure. The sectors banking, automotive, financial services and real estate also suffered slighter losses. In the month under review the fund benefited above all from its stock selection in the underweighted sectors oil & gas and industry as well as from its investments into the basic materials sector (overweight in the fund). Viewing individual stocks the strongest value contributions came from the Taiwanese semiconductor manufacturer Taiwan Semiconductor, the Danish wind turbine manufacturer Vestas Wind Systems and the mining company Polymetal. On the other hand the fund's performance in the month under review was negatively affected by the cyclical consumer and financial services sectors. The weakest performers were the Hong Kong based real estate company Great Eagle and two US companies, Gilead Sciences (pharmaceutical and biotechnology) and Eli Lilly (pharmaceuticals). During the month the fund's management slightly increased its investments into the sectors basic materials, technology and chemicals. However, positions in the healthcare and food & beverages sector were reduced. Regionally the fund management slightly reduced the US and Switzerland allocation. The proportion of German stocks remained almost stable. As a result of these adjustments the fund's equity allocation rose from 90.26% previous month to 92.09%. The cash ratio fell from 9.74% to 7.91%. At the end of the month US dollar-denominated securities were partially hedged against currency risks.