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DJE - Equity Market Neutral Europe PA (EUR)

DJE - Equity Market Neutral Europe PA (EUR) Header Image
ISIN:
LU1681425366
As at:
21/10/2019
Bid:
89.93 EUR
Offer:
92.63 EUR

Monthly Commentary

The international stock markets made progress in September and were able to gain ground for the most part. Monetary policy played a major role in this. The European Central Bank resumed its EUR 20 billion monthly bond purchase program and lowered the deposit rate from -0.4% to -0.5%. After the end of July, the US Federal Reserve again lowered its key interest rate by 25 basis points to between 1.75% and 2.0%, and in China the central bank reduced its minimum reserve rate for banks for the third time. In addition, market participants hoped that the trade conflict between the US and China could possibly lead to a provisional deal, as both sides described the resumed talks as constructive. However, the majority of economic indicators disappointed, especially in Europe. The German purchasing managers' index for the manufacturing sector reached a ten-year low of 41.4 points, while its counterpart for the euro zone fell to 45.6 points. In Germany, incoming orders and industrial production also declined, with only exports increasing slightly. September was marked by a revival in cyclical stocks, which played into the cards of the STOXX 600 Europe due to its almost 10 percent bank share. Banks recorded a 9% increase in value last month, and the sectors basic materials, construction & materials and automobiles sectors also contributed significantly to the 3.6% increase in the overall market. In a market environment with such abrupt style and sector rotations, it is difficult to generate alpha in the short term. For the market neutral DJE - Equity Market Neutral Europe this month ended with a minus of -0.41%. The main reason for this was the strong underweight in the banking sector, which, however, had proven to be correct for a long time in the past. By contrast, the positions built up in the automotive, commodities and construction & materials sectors contributed positively to the fund's performance in September. The portfolio beta remains just above 0.9.

Legal Information / Disclaimer:

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.