DJE - Dividende & Substanz PA (EUR)
- As at:
- 145.72 EUR
- 153.01 EUR
In March the international equity markets continued their recovery although the upward momentum slowed compared to the two extremely strong previous months. The German stock market on the other hand was stagnating due to weakness in the automotive and financial sectors. The international stock markets were supported monetary. The European Central Bank announced a two-year programme for long-term interest-free refinancing loans (TLTRO). On the European bond markets this triggered a rally in government bonds. Yields on ten-year German government bonds fell below the 0% mark for the first time since 2016. The US Federal Reserve (Fed) announced its intention to reduce its balance sheet more slowly from May onwards and to discontinue the reduction from September. In addition it signaled that it is unlikely to raise key interest rates again this year. An agreement in the trade conflict had not yet been found but the markets continued to expect a positive result from the talks between the USA and China. In this market environment the DJE - Dividende & Substanz rose 1.61%. Its benchmark index MSCI World rose 2.48% in euro terms. During the month the fund benefited primarily from its investments in the household goods and food & beverage sector. Anyway titles of the credit and automotive sector had a negative impact. Viewing individual stocks the French food producer Danone and the consumer goods producer L᾽Oréal as well as the American asset manager Blackrock provided the strongest contribution to the overall result of the fund. However, the German Wacker-Chemie Group and the telecommunications company Veon had a negative impact on the fund's performance. During the month the fund management increased its exposure to the financial services, technology and household goods sectors. In return it reduced its holdings in the chemical, industrial and real estate sectors. Regionally, the fund management reduced its exposure to the UK, Germany and China (including Hong Kong) in favour of US equities. Because of these adjustments the fund's equity exposure fell from 98.5% to 96.2%. There were no currency hedges at the end of the month.