DJE - Dividende & Substanz PA (EUR)
- As at:
- 148.60 EUR
- 156.03 EUR
In October the international stock markets performed mainly well. 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 the equity markets. At the end of October the Fed cut key interest rates by 25 basis points to between 1.50% and 1.75%. Therefore the US dollar depreciated by just under 2% against the euro. On the other hand, the majority of economic indicators in the USA, the euro zone and China declined. In this market environment the value of the DJE - Dividende & Substanz rose 0.38%. Its benchmark index the MSCI World increased 0.12% in euro terms. In October most sectors of the MSCI World performed well but more than a third ended the month down. The highest gains were recorded in the automotive, healthcare, construction & materials and technology sector. On the other hand, the food & beverage, oil & gas, travel & leisure, utilities, media and insurance sectors suffered higher price losses. Positive for the performance of the fund were mainly positions in the strong automotive and construction & materials sector (currently the fund's overweighted investment focus). At the individual security level the strongest value contributions to the overall performance came from the Hong Kong investment company Kingboard Holdings and the US IT group Apple. On the other hand, the overall performance was affected by investments in the weak food & beverage (overweight investment focus of the fund) and oil & gas (currently underweight in the fund) sector. At the level of individual stocks the French food group Danone and the Munich-based payment service provider Wirecard had a particularly negative impact on the overall performance of the fund. During the course of the month the fund management expanded its activities in the construction & materials, automotive, chemical, industrial and insurance sector. In return it reduced its investments in the food & beverages, oil & gas, retail and utilities sectors. Regionally the fund management increased its investments in Europe (including Germany) and the USA. On the other hand, it reduced positions in Switzerland and the UK. Because of these adjustments the fund's equity exposure rose from 94.41% previous month to 98.41%. The cash ratio fell from 5.59% to 1.59%. There was no currency hedging against the euro at the end of the month.