DJE - Asia High Dividend PA (EUR)
- As at:
- 213.71 EUR
- 224.40 EUR
In March the international stock markets continued their recovery although the upward momentum slowed down compared to the two previous months. The international equity markets were supported monetary. The European Central Bank announced a two-year programme for long-term interest-free refinancing loans (TLTRO). The US Federal Reserve (Fed) signaled that it is unlikely to raise key interest rates again this year. China's government, on the other hand, had announced a more expansionary fiscal policy and lowered value-added tax in the industrial and construction sectors in March. It also raised its deficit target for 2019 from 2.6% to 2.8%. An agreement in the trade conflict between the US and China had not been found yet but the markets continued to assume a positive outcome of the talks between the US and China. The Chinese Caixin Purchasing Managers Index recovered and rose from 48.3 to 49.9. The DJE - Asia High Dividend gained 2.89% in this market environment. Its benchmark index (MSCI Daily TR AC Far East Ex Japan) rose 2.36%. The better performance of the fund compared to the benchmark index is mainly due to high value contributions of selected, partly highly weighted individual stocks and also to the overweighting of the real estate sector. At sector level real estate, energy, non-cyclical basic consumption and telecommunications in particular performed above average within the Asian investment region in March. The DJE - Asia High Dividend was overweighted or more strongly positioned in the real estate sector and in defensive consumption while the telecommunication sector was underweighted and the energy sector equally weighted. The utility, industrial and healthcare sectors in particular performed below average in March. In the first two sectors the fund was slightly overweighted or invested more heavily and underweighted in the healthcare sector. Overall, the weighting of the sectors had a slightly positive effect on fund prices in March compared to the benchmark index. Viewing individual titles the highest performance contributions in March came from investments in the highly-weighted real estate stocks Hopewell Holdings and Champion REIT from Hong Kong as well as from positions in the Indian financial value Housing Development Finance which is also strongly weighted. In addition the sporting goods producer Anta Sports and the wind turbine manufacturer and operator Xinjiang Goldwind - both located in China - also made valuable contributions to the fund's performance. On the other hand, investements in the Chinese chemical company Kingboard Laminates and the Chinese insurance group PICC had a negative impact. During the month the fund management reduced the investment ratio from 98.81% (previous month) to 94.34%. At sector level the fund management reduced the weighting of the automotive, insurance and real estate sectors. In return the fund increased its exposure to the commodities, energy, food and pharmaceutical sectors. Regionally the proportion of Chinese stocks listed in Hong Kong was reduced and the proportion of Japanese stocks slightly increased. The remaining country allocation remained largely unchanged. There were no currency hedges at the end of the month.