DJE - Gold & Ressourcen I (EUR)

DJE - Gold & Ressourcen I (EUR) Header Image
Minimum investment: 75,000 EUR
ISIN:
LU0159550820
As at:
12/11/2019
Bid:
147.41 EUR
Offer:
147.41 EUR

Investment approach

The gold mining industry reduced its costs and growth investments due to the obvious gold price reduction in 2013. Therefore most of the gold companies ought to be able to generate a free cash flow in the future, once the gold price exceeds 1,250 USD/oz. The improved profitability will affect the equity price in the middle term positively. Compared to the gold price the valuation of gold producers’ shares is relatively low currently. The chances for the broad commodity market have to be seen mainly in the progressing urbanization of China and the emerging markets, followed by an increasing commodity demand. The fund focusses on companies, which produce commodities, characterized by a favorable supply and demand relation. Actually nickel, platinum and palladium belong to this group. A low supply and a stable demand will result in high prices for the middle and long term, which will give a positive impulse for the profit development of the producers. The DJE - Gold & Ressourcen applies very strict investment criteria: The fund is only invested in companies operating in politically stable areas with a fundamentally attractive valuation. Particularly falling real interest rates will influence the gold price development sustainably, see diagram below.

Chances

  • In the long term, high upside potential for stocks of the gold and commodity sector
  • Exchange rate gains in global investments are possible
  • Increasing demand for physical gold due to declining confidence in established currencies and high demand from the emerging market jewelery sector; this should lead to higher gold prices and thus to higher prices for gold mining stocks

Risks

  • In addition to market price risks (equity and currency risks), there are country and credit risks
  • Currency risks resulting from a high proportion of foreign investments
  • Shares in the commodity and precious metals sector are generally more volatile than the overall market

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.