Key information
DJE - Zins & Dividende invests globally, primarily in bonds and equities, and is free of benchmark constraints. The fund seeks to generate a stable performance while emphasising an absolute return approach with the aim of avoiding losses as far as possible. Through differentiated weighting of the asset classes bonds and equities which are characterised by high dividends and substance, the fund aims to generate regular interest income on the one hand and to achieve the most sustainable positive performance possible with low volatility on the other. When selecting shares, the fund management pays attention to stable dividend payments and also to an investor-friendly corporate policy with capital returns and share buybacks (total shareholder return). The fund's flexible investment approach enables it to adapt quickly to the constantly changing market conditions. To reduce the risk of capital fluctuations, at least 50% of the fund's assets are invested in bonds on a permanent basis. The equity exposure is at least 25% and is limited to a maximum of 50%. Currency risks are hedged depending on market conditions.
Responsible manager since inception
Responsible manager since 01/07/2019 as co-manager
Key information
| ISIN: | LU0553164731 |
| WKN: | A1C7Y8 |
| Category: | Mixed funds (Balanced) |
| VG/KVG: | DJE Investment S.A. |
| Fund Manager: | DJE Kapital AG |
| Risk Category: | 4 |
| Type of Share: | distribution |
| Financial Year: | 01.01. - 31.12. |
| Launch Date: | 10/02/2011 |
| Fund currency: | EUR |
| Fund Size (14/01/2021): | 2.260,66 Mio EUR |
| TER p.a. (30/12/2019): | 1,73 % |
| Reference Index: |
Fees
| Initial Charge: | 4,00 % |
| Management Fee p.a.: | 1,50 % |
| Custodian Fee p.a.: | 0,10 % |
| Advisory Fee p.a.: | 0,35 % |
| Performance Fee p.a.: | up to 10% of the increase in Fund assets in excess of 4% (Hurdle Rate) , High Water Mark over preceding 5 years. |
Ratings & Awards (14/01/2021)
| Morningstar*: |
|
Top Country Allocation (30/12/2020) |
|
|---|---|
| United States | 33,68 % |
| Germany | 15,62 % |
| France | 5,79 % |
| Switzerland | 5,67 % |
| Netherlands | 5,24 % |
| China | 5,11 % |
| Cayman Islands | 5,01 % |
| United Kingdom | 5,00 % |
Asset Allocation (14/01/2021) |
|
|---|---|
| Stocks | 49,53 % |
| Bonds | 49,47 % |
| Cash | 1,00 % |
Investment approach
The DJE – Zins & Dividende aims to deliver - over a full market cycle - a constant absolute return in all market conditions no matter the market direction. On the bond side the DJE in-house research team tries to selectively filter out of the complete bond universe the most promising investment ideas. The DJE – Zins & Dividende will mainly invest in bonds issued by public bodies and corporations rated at least investment grade. On the equity side the well-established investment approach of the DJE dividend strategy is based on the recognition that, in the long term, most of the overall performance of an equity investment comes from the compounding effect generated by reinvested dividends. Long-term investigations of international stock markets show that only slightly more than half of the profits are caused by price increases and the other half due to dividend effects. The attractive dividend yield currently provided by companies and the good earning offers further dividend growth potential. Considerations like these, in combination with the absolute return approach of DJE – Zins & Dividende, should lead to an attractive risk/return profile of the fund, which should also in volatile markets be maintained by allowing the management to flexibly allocate between equity and bonds respectively cash.
Chances
- Experienced fund manager following an investment approach based on fundamental, monetary and market-technical (FMM) analysis, which has a proven track record of over 45 years
- Efficient mixture of equities and bonds with strategic risk diversification
- The opportunities of the global equity and bond markets may be used – the fund is not restricted to one region or country
Risks
- Price risks of bonds when interest rates rise
- Currency risks resulting from the portfolio’s foreign investments
- Equities may be subject to significant price falls
- Issuer country, credit and liquidity risks
Monthly Commentary
In December the relief rally of the previous month continued - albeit more moderately. Corona was also determinant in the last month of the year in negative and positive terms. In Europe many governments imposed tighter lockdown measures, on the other hand, several Covid 19 vaccines were approved and vaccination started in the UK. Stock markets received additional tailwinds from central banks which increased and extended their bond-buying programs (ECB) or plan to continue until employment and inflation will improve (Fed). In Europe and China leading indicators and economic data pointed to a revival of the economy while in the USA indicators declined slightly. A good sign of a reviving economy came from the oil price: Brent crude cost more than $50 per barrel for the first time since March 2020. In this context bond markets showed a mixed performance. In Germany yields of 10-year Bunds was virtually unchanged at -0.57% while yields of their US counterparts rose from 0.84% to 0.91%. Corporate bonds showed a friendly trend worldwide at the end of the year. The gold price rose from US$1,774 to US$1,898 per troy ounce. In this market environment the price of the DJE - Zins & Dividende rose 0.96%. In December two thirds of the sectors of the global equity market performed positively. The highest price gains in December were recorded by the sectors basic materials, automotive and media. In addition the sectors financial services, technology, banking, household goods and oil & gas performed well. On the other hand the sectors retail, construction & materials, real estate, utilities and telecom suffered slight losses in December. The fund benefited in particular from titles of the wind turbine manufacturer Vestas Wind Systems (Denmark) and the British-Australian mining company Rio Tinto in the reporting month. On the other hand the IT group Alibaba (China) and the reinsurance company Hannover Rück (Germany) performed particularly disappointing on the equity side. During the month the fund management slightly reduced its investments in the defensive sectors of healthcare and insurance. On the other hand it slightly expanded the sectors industry and chemicals. Regionally the Chinese and German allocations were reduced and U.S. equities slightly increased. The fund's equity allocation remained almost stable at 49.42% (49.67% previous month). On the bond side the fund management acquired a corporate bond from the mobility sector on the primary market and sold a bond from the telecommunications segment. The fund's bond ratio decreased slightly from 49.67% to 49.15%. The cash ratio increased slightly to 1.43% from 0.71% previous month. At the end of the month U.S. dollar-denominated securities were currency hedged in phases.
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Prospectus & Reports
Further Documents
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.