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

Even though August tends to be considered to be a modest stock market month the international stock markets made good progress with a few exceptions. They benefited from the fact that, despite high inflation rates, the U.S. Federal Reserve considered an immediate tapering of bond purchases to be premature in view of the labor market. Rising inflation had little impact on the gold price on a monthly basis, which remained virtually unchanged at USD 1,815/troz. Yields of high-quality U.S. government bonds, which had risen more sharply in anticipation of a change in strategy by the Fed fell again slightly at the end of the month. The ECB announced that the monetary policy will remain expansionary until the inflation rate target in height of 2% will be reached for a certain period. Market participants were also relieved that the wave of infection of the delta variant of the coronavirus had probably reached its plateau in August and renewed restrictive measure do not need to be feared. On the other hand, continued supply bottlenecks in the industry and subdued expectations in the retail sector due to rising prices weighed on companies' optimism. In this market environment, the price of the DJE - Concept increased 1.81%. Its benchmark index (75% MSCI World, 25% REX 1 year Performance Index) gained 2.21%. In August a good three quarters of the sectors of the global stock market performed positively. The highest price gains were recorded by the sectors insurance, technology and financial services, followed by the sectors media and utilities. On the other hand, the basic materials sector and the automotive industry in particular suffered price losses. In August the fund benefited in particular from the sectors healthcare and utilities. Particularly pleasing results were achieved by individual stocks such as the Mainz-based biotechnology company BioNTech, the Essen-based energy supplier E.ON, the US IT company Alphabet (parent of Google), the US provider of infrastructure solutions for energy supply and oil and natural gas companies Quanta Services and the Swiss pharmaceuticals group Roche. On the other hand, negative for the fund’s performance was the development of the sectors basic materials and real estate. Viewing individual stocks the Hamburg-based copper producer Aurubis, the Kassel-based mining company K+S, the Hong Kong-based Kingboard Holdings (laminates) and Hon Kwok Land (investment) as well as the Swiss travel booking and hotel rating portal HolidayCheck performed particularly disappointing. The fund management reduced various sectors during the month like basic materials, technology and industrials. On the other hand it increased the utilities sector in particular. Regionally reduced were the allocations of Germany and the USA. The equity allocation decreased to 65.84% (80.18% previous month). Liquidity increased from 19.82% to 34.16%. US and Hong Kong dollar denominated prices were 100% currency hedged as of month-end.

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