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LuxTopic - Systematic Return B

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Minimum investment: 1,000,000 EUR
ISIN:
LU1181280105
As at:
13/11/2019
Bid:
820.23 EUR
Offer:
820.23 EUR

Monthly Commentary

In October the international stock markets performed broadly well. The German share index DAX rose 3.53% reaching an annual high. The broad European stock index Stoxx Europe 600, on the other hand, made only 0.92% progress. In the USA the S&P 500 index fell slightly -0.18%. The Hang-Seng index (Hong Kong) rose 0.89%. Overall equities worldwide measured by the MSCI World Index rose 0.22% - all index data on euro basis. Equity markets were driven primarily by expectations of a provisional settlement of the US-China trade dispute. China agreed to purchase more US agricultural products in the future while the US in return refrained from raising various import tariffs up to 30%. However, the issue of Chinese state-owned enterprises was ignored. In the USA the reporting season started better than market participants had feared. The expected earnings growth of companies in the S&P-500 remained negative but improved from -3.1% to -1.9%. The US economy also grew stronger than expected in the third quarter with growth of 1.9% (Q3/2018) mainly due to consumption which increased 2.9% year-on-year. In addition, the US Federal Reserve (Fed) lowered key interest rates again at the end of October by 25 basis points to a range of 1.50% to 1.75%, as the majority of investors expected. As a result, the US dollar depreciated by just under 2% against the euro. The Fed also announced that it would not cut interest rates further for the time being due to decreasing economic risks. However, the majority of US economic indicators declined. For example, the purchasing managers' index for the manufacturing sector reached a ten-year low, retail sales and industrial production fell slightly compared to previous month and order bookings were slightly stronger. In Europe, the British government and the EU surprisingly agreed on a Brexit agreement which had a positive effect on the mood on the stock markets. However, as the new agreement failed to gain a majority in the UK parliament, the UK requested an extension of the exit deadline until 31 January 2020 and the parliament approved new elections on 12 December. The euro area economy grew by 0.2% in the third quarter (compared to Q3/2018), slightly more than expected, but significantly less than the US economy. The majority of economic data in Germany and the euro zone remained weak. The German ifo Business Climate Index reached a ten-year low of 94.6 points. The purchasing managers' index for the manufacturing sector in Germany rose slightly to 41.9 points and remained unchanged at 45.7 points for the euro zone but with clearly below 50 points both point to a shrinking economy. German industry reported a slight decline in incoming orders compared to previous month although industrial production increased moderately. In China the economy grew 1.5% in the third quarter (compared to Q3/2018) which suggests growth of around 6.0% for the year as a whole - the lowest growth level since 1990. Various indicators such as the purchasing managers' index for industry, exports and imports also declined in China. However, industrial production grew significantly 5.8% year-on-year and retail sales also climbed 7.8%.

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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 www.dje.de. 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.