The DJE - Gold & Resources is a theme-oriented global equity fund. The concentrated portfolio of 50-70 stocks focuses on shares of companies active in the mining, processing and marketing of gold. Equities from a broader commodities universe, such as diversified mining companies, non-ferrous metals, oil and gas are added for diversification reasons. The index-independent strategy can dynamically vary its share of gold mining stocks between 30 - 100%. With gold as the investment focus, the fund offers diversification and a lower correlation to traditional investment strategies.
Responsible manager since inception
|Category:||Themed Equity Funds Global Precious Metals/Basic Resources|
|VG/KVG:||DJE Investment S.A.|
|Fund Manager:||DJE Kapital AG|
|Type of Share:||distribution|
|Financial Year:||01.01. - 31.12.|
|Fund Size (19/01/2021):||84,33 Mio EUR|
|TER p.a. (30/12/2019):||1,00 %|
|Reference Index:||60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/ Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)|
|Management Fee p.a.:||0,65 %|
|Custodian Fee p.a.:||0,09 %|
|Advisory Fee p.a.:||0,35 %|
Performance in Percent vs. Reference Index
Top Country Allocation (30/12/2020)
|United Kingdom||11,32 %|
|United States||9,37 %|
|South Africa||8,87 %|
Asset Allocation (19/01/2021)
The theme-oriented and globally investing equity fund focuses on gold and precious metals equities, diversified commodity groups, base metal producers, chemical companies and oil & gas producers. The fund pursues an index-independent bottom-up approach with high-quality stock selection, focusing on the fundamental data of the companies. Debt-free gold producers with a competitive cost structure that can generate free cash flows even at lower gold prices are preferred. In general, negative or falling real interest rates are positive for tangible assets and for gold in particular. Investment demand for gold should continue to rise if US real interest rates remain low or fall again.
- Increasing demand for physical gold due to declining confidence in established currencies and high demand from the emerging market jewelery sector; this should lead to higher gold prices and thus to higher prices for gold mining stocks
- In the long term, high upside potential for stocks of the gold and commodity sector
- Exchange rate gains in global investments are possible
- Currency risks resulting from a high proportion of foreign investments
- Shares in the commodity and precious metals sector are generally more volatile than the overall market
- In addition to market price risks (equity and currency risks), there are country and credit risks
In December the value of DJE - Gold & Resources increased 4.47%. Its benchmark index (60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)) gained 4.75%. Gold mining stocks performed positively in December. The XAU Gold Mining Index rose 9.35% in US dollar terms and 6.37% in euro terms - due to the US dollar depreciating against the euro in December. Gold mining stocks thus outperformed the gold price itself which rose 6.23% in U.S. dollar terms to settle at $1,894.4 per ounce. In euro terms the gain was lower at 3.34% and 1,549.6 EUR/ounce due to the depreciating US dollar. The recent downward trend in gold did not continue in December and the gold price was able to regain some ground. In the 4th quarter gold was mainly burdened by the positive news regarding the Corona vaccines. On the other hand gold received tailwind from the weakness of the U.S. dollar - the trade-weighted dollar index was at its lowest level since April 2018 at the end of the year. In addition the gold price also benefited from rising inflation expectations in the U.S. Furthermore the political situation could continue to have a positive impact on the gold price. The majority of Democrats in the House of Representatives and the Senate should facilitate the planned expansionary fiscal policy of the newly elected U.S. President Joe Biden. This should also have a positive impact on growth and inflation with a time lag. In this case real yields would probably fall further as the Fed has already announced that it will not raise interest rates for a long time yet even in the event of rising inflation. Gold should benefit from this. Overall a continuation of the phase of extremely low or negative real interest rates is to be expected - both in the USA and in Europe. In such a real interest rate environment, investments into gold appear safer than parking capital at a (possibly uncertain) bank without interest. The highest positive performance contributions in December came, among others, from the positions of the highly weighted diversified commodity groups Rio Tinto (UK/Australia) and Anglo American (UK/South Africa), from the gold and platinum group metals producer Sibanye Stilllwater (South Africa) and from the silver and gold producers First Majestic Silver and Yamana Gold (both from Canada). On the other hand positions in the gold streaming companies Royal Gold (USA) and Franco Nevada (Canada) and in the fertilizer company Nutrien (Canada), among others, had a negative impact. The weighting of gold mining stocks was between 55-60% during the reporting period. The focus remains on solidly financed producers that generate positive free cash flows even at lower gold prices and that offer also some growth prospects. Broader based commodity/chemical stocks underperformed gold mining stocks in December: MSCI World Materials +3.54% and CRB Commodity Index +2.51% - both figures in Euro terms. At the end of the month US dollar-denominated stocks were mainly fully currency hedged.
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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.
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