- DJE - Equity Market Neutral Europe XP (EUR)
- DJE - Equity Market Neutral Europe PA (EUR)
DJE - Equity Market Neutral Europe XP (EUR)
- As at:
- 91.55 EUR
- 91.55 EUR
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 -0.37%. 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.