Investment approach

High-dividend shares are a source of recurring income, but their importance is often underestimated. In the long term, dividends are often the strongest contributor to share performance, because reinvested dividends benefit from the compound interest effect. For this reason, shares with above-average dividend yields are favoured in DJE - Dividende & Substanz. However, the decisive factor is not the amount, but above all a stable, ideally rising dividend payment. A low payout ratio helps here. Analyses have shown that high-dividend stocks can be more robust in difficult market phases than low-dividend stocks, as a dividend can act as a buffer to cushion temporary price losses. After all, good substance and balance sheet quality as well as a high dividend yield with an earnings situation that is as secure as possible increase the chance of sustained investment success. The stock selection aims at an above-average dividend yield relative to the market. However, the fund may also include stocks that do not currently pay a dividend.

Monthly Commentary

The stock markets suffered from a slight summer lull in August. The economic data and indicators for Germany and China were disappointing, so that investor sentiment in both regions deteriorated further and European and Asian indices mostly fell. In contrast, the US stock market was relatively stable, as most market participants expected a so-called “soft landing” – a slowdown in the economy without a recession. The US economic data only points to a slowdown in economic growth. With inflation at 3.2% approaching the US Federal Reserve's (Fed) 2% target, the majority of market participants no longer expect another interest rate hike in September. However, the heads of the Fed and ECB left the question of further interest rate steps open at the annual central bank meeting in Jackson Hole. The DJE – Dividende & Substanz fell by -1.35% in this market environment. Around three quarters of all sectors on the global stock market performed negatively. Only the energy, telecommunications, healthcare, retail and insurance sectors recorded positive results. On the other hand, the banking, consumer goods & services, basic materials, utilities and automobile sectors in particular delivered negative results. In August, the fund particularly benefited from the healthcare, insurance and financial services sectors. In contrast, the utilities, banks and real estate sectors negatively impacted the fund's performance. The strongest individual stock results came from the Danish pharmaceutical group Novo Nordisk and the US pharmaceutical company Eli Lilly as well as the US payment service provider VISA. However, performance was negatively affected by, among others, the German vehicle manufacturer Dr. Ing. Porsche AG, the conglomerate CK Hutchinson Holdings, which is listed on the Hong Kong Stock Exchange, and the Hong Kong laminates manufacturer Kingboard Holdings. The fund management increased the weightings in the healthcare sector, among others, over the course of the month. In return, it reduced the technology and industrial sectors. As a result of the adjustments, the fund's equity quota fell from 90.14% to 84.62%. As a result, liquidity increased from 9.86% to 15.38%.

Print optimized factsheet

Prospectus & Reports

Sustainability-related documents

PRIIP Documents

Further Documents