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 sustained 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: | LU1794438561 |
| WKN: | A2JGDY |
| Category: | Mixed funds (Balanced) |
| VG/KVG: | DJE Investment S.A. |
| Fund Manager: | DJE Kapital AG |
| Risk Category: | 4 |
| Type of Share: | accumulation |
| Financial Year: | 01.01. - 31.12. |
| Launch Date: | 03/07/2018 |
| Fund currency: | EUR |
| Fund Size (01/03/2021): | 2.285,85 Mio EUR |
| TER p.a. (30/12/2020): | 0,98 % |
| Reference Index: |
Fees
| Management Fee p.a.: | 0,65 % |
| Custodian Fee p.a.: | 0,10 % |
Top Country Allocation (26/02/2021) |
|
|---|---|
| United States | 34,86 % |
| Germany | 14,60 % |
| Cayman Islands | 5,99 % |
| China | 5,27 % |
| United Kingdom | 4,91 % |
Asset Allocation (26/02/2021) |
|
|---|---|
| Bonds | 49,74 % |
| Stocks | 48,78 % |
| Cash | 1,47 % |
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
- The opportunities of the global equity and bond markets may be used – the fund is not restricted to one region or country
- Efficient mixture of equities and bonds with strategic risk diversification
- 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
Risks
- Equities may be subject to significant price falls
- Currency risks resulting from the portfolio’s foreign investments
- Issuer country, credit and liquidity risks
- Price risks of bonds when interest rates rise
Monthly Commentary
After a promising start of 2021 the markets slipped into negative territory towards the end of January, with the exception of Asia. This was mainly due to the uncertainty if vaccines developed so far could also be effective against the mutations of the Corona virus that have occurred, the insufficient supply of vaccines in the EU and the prolonged lockdown measures. In addition a turmoil was caused in the markets when small investors arranged to buy certain stocks in bulk via social media and trading platforms, driving up prices. As these stocks were also the target of short selling by several hedge funds that were forced to cover their positions the price was even more pushed. The bond markets reacted with partly with a moderate rise of interest rates - yields of 10-year German government bonds rose from -0.57% to -0.52% - but also with interest rates rising more sharply. 10-year US Treasuries yielded 1.07%, 16 basis points higher than at the beginning of the month. The gold price declined -2.67% to US$1,847.65/troz. In this market environment the price of the DJE - Zins & Dividende rose 0.50%. In January almost two-thirds of all sectors of the global equity market performed negatively. The sectors travel & leisure, food & beverages, household goods, financial services and insurance suffered the highest loses. Anyway, a good third of the MSCI sectors ended the month on a positive note. The highest gains were recorded by the sectors oil & gas, automotive, technology, retail and healthcare. The fund benefited from the sectors telecom and technology. The highest value contributions came from the two US companies Paypal (online payment service) and Alphabet (holding company; including IT services and trading, software, biotechnology). On the other hand, the insurance sector detracted from the fund's performance. Disappointing on the equity side was the performance of the Danish energy supplier Orsted and the French food company Danone. The fund management slightly reduced various sectors including the defensive food & beverages and healthcare. But it also slightly expanded the technology and industrial sector. Regionally the share of German and Swiss stocks was slightly reduced and Hong Kong stocks were increased. The fund's equity allocation declined to 46.07% from 49.42% previous month. On the bond side the fund management acquired Mexican government bonds in local currency. The fund's bond allocation was 50.23%, up from 49.15% previous month. The cash ratio increased to 3.70% from 1.43% previous month. At the end of the month the hedging of US dollar-denominated securities was reduced.
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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.