- DJE - Equity Market Neutral Europe XP (EUR)
- DJE - Equity Market Neutral Europe PA (EUR)
DJE - Equity Market Neutral Europe XP (EUR)
- As at:
- 93.89 EUR
- 93.89 EUR
In June the European stock market - like almost all stock markets worldwide - posted a positive result. The equity markets received a tailwind from the central banks: the ECB extended the period during which key interest rates are not expected to rise till mid-2020 and will place further bond purchases in the region if the economy in the euro zone is not going pick up. The US Federal Reserve announced its willingness to react in order to support the US economy in view of the trade conflict between the US and China. Most market participants then expected the Fed to cut key rates in three steps by the end of the year. In addition hopes of a minimal consensus in the US-China trade dispute returned as US President Trump announced a meeting with Chinese President Xi at the G20 summit in July and a follow-up to the talks interrupted in late May. In this market environment the broad European stock index STOXX Europe 600 rose 4.28%. The DJE - Equity Market Neutral Europe was unable to meet the target and closed the month with a result of -0.70%. The main reason for the negative development was the low equity ratio and the costs of hedging market risks. In addition the fund was less well positioned in the chemical, commodity, industrial and technology sectors which performed above-average over the month. Stock selection had a particularly negative impact on the real estate sector, the only sector that also posted a negative result in the index in June. On the other hand, the fund benefited from its exposure to the construction & materials, household goods, retail and insurance sectors. During the month the fund's management significantly increased its exposure to the industrial sector. The technology, retail and oil & gas sector were also weighted more strongly. In return the fund management reduced its exposure to the food & beverage, household goods and utilities sector. These adjustments increased the fund's equity exposure. The portfolio beta was unchanged at just under 0.9 at the end of the month.