Investment approach

The DJE - Concept is an investment concept which is managed independently of any benchmark with the effect of an optimized chance/risk ratio. The basis is the three-dimensional FMM-method, which was developed by Dr. Jens Ehrhardt and has been proven for over 45 years. This approach not only takes into account (F)undamental factors like micro- and macroeconomic data for corporations and economies, but also (M)onetary and technical (M)arket aspects, which are often neglected by other fund managers. Fundamental factors play a more important role in the long-term strategic orientation of the portfolio than, for example, technical market factors, which are of particular significance to the fund’s short-term, tactical positioning. In normal market phases, the DJE Concept focuses on current trends. In extreme situations (such as an euphoric mood on the market), the main factors influencing trends can be countered with an anticyclical investment strategy.

Monthly Commentary

April was a difficult month for the stock markets. A whole range of risk factors weighed on the stock markets: the war in Ukraine and fears of further escalation weighed on sentiment and increased investor pessimism. Energy prices remained at a high level, but did not rise much further, mainly because demand from China's manufacturing industry declined significantly. In addition, the lockdown in Shanghai caused a traffic jam in the busiest container port, which further strained the already tight global supply chains. Therefore the price pressure on energy, many commodities and food remained high. Inflation rose to 8.5% in the USA (in March) and to 7.5% in the euro area compared to the same month last year, which increased the pressure on central banks to raise key interest rates. High interest rate expectations and growing government debt weighed on the bond market. Interest rates on ten-year German government bonds rose from 0.55% to 0.94% and their US counterparts yielded 59 basis points higher at 2.93% as of the end of April. The price of a troy ounce of gold eased slightly falling -1.76% to US$1,897.96. In this market environment the value of the DJE - Concept corrected -2.63%. Its benchmark index (75% MSCI World, 25% REX 1 year Performance Index) lost -3.10%. On the international stock markets about one third of the sectors performed positively in April. The highest price gains were recorded by the sectors food & beverages and personal care & pharmaceuticals. The sectors energy, utilities and healthcare, among others, also achieved positive results. The other sectors, however, suffered losses in April. The sectors media, technology, automotive, financial services and retail saw the largest declines. At the individual stock level the fund benefited in April primarily from the very good results of the Kassel-based mining company K+S (fertilizers and salts) and the Hong Kong investment holding company Kingmaker Footwear (footwear sector). On the other hand negative impulses came mainly from the biotechnology company BioNTech located in Mainz, the Basel pharmaceutical company Roche and the Swiss commodities trader Glencore. The fund management increased the sectors health care and utilities. Reduced was in particular the chemical sector. Regionally mainly the weighting of the USA was reduced. The equity quota was reduced from 53.04% previous month to 47.16%. The bond quota was 22.09% (21.29% previous month). Liquidity was increased to 30.76% (25.67% previous month).

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