In an interview with the Austrian Geld-Magazin, Moritz Rehmann, fund manager of DJE - Multi Asset & Trends, explains why and where the current volatile market environment offers opportunities and risks, whether the correction could turn into a bear market and how he positions his fund.
The situation on the markets is generally tense (tariff war, an unpredictable White House, risk of recession in the USA, unresolved Ukraine conflict, etc.). What opportunities and risks do you see in this environment for investments in general - and for your fund in particular?
Generally speaking, we currently see an environment of high volatility, which also brings us to the first opportunity. Stock exchange operators, for example, are clear beneficiaries here and have already demonstrated their strength in recent quarters. In the tech sector, risks and opportunities are balanced. On the one hand, the correction is already well advanced for a large number of shares, while on the other hand there are considerable structural question marks regarding the value of the current wave of investment in the cloud infrastructure for artificial intelligence. A precise differentiation must be made here on the investment side. However, there are also opportunities on the stock markets in Asia, be it in Chinese technology companies that want to close the gap with the Americans or in Japanese financial stocks that are benefiting from rising interest rates. In the bond asset class with a weighting of around 21%, we are focusing on a selection of primarily high-quality credit ratings in the current politically challenging environment, while the precious metal component of 8% stabilizes the portfolio even in difficult market phases - just as it should be in a multi-asset fund.
What role do other assets play in your portfolio alongside equities and bonds? Precious metals, commodities and alternative investments, for example.
In addition to equities (currently approx. 70% weighting) and bonds (approx. 21% weighting), precious metals also play an important role in the DJE Multi Asset & Trends portfolio (8% weighting).* The latter are an important long-term component of the portfolio for particularly challenging market phases and serve as a safety anchor. However, this asset class has also made a significant positive contribution to performance in recent years and in 2025 in particular, not least due to the increased geopolitical uncertainty in the world.
Are there currently any regions/states and sectors in your fund that you see as particularly attractive?
In terms of sectors and regions, we currently see improved potential for selected equities in China in the technology sector (strong innovation) and the consumer sector (focus of political efforts in 2025). Japanese companies in the financial industry, which are benefiting from rising interest rates. In the European market for beneficiaries of the steeper yield curve and volatility. Furthermore, in the US market for selected companies in the technology sector and in the financial industry, although political risks and volatility are certainly significantly higher here at present.
How have you reacted to the AI hype in the fund? Furthermore, the US technology giants in particular have corrected sharply, how does this influence your investment decisions?
So far, we have been able to benefit from the positive development of many companies in the AI environment in the US in 2024, as well as from the catch-up movement of Chinese competitors this year. Currently, the risk/reward balance is shifting towards application providers, as early winners in hardware and infrastructure may be heading towards a slowdown in investment appetite, with increasing doubts about rapid monetization and potential margin pressure from growing supply capacity.
Speaking of market corrections: Is it a recovery process or are we facing a bear market?
At the moment, it is still a "healthy correction", which is primarily being driven by the huge increase in uncertainty caused by the US government's policies. However, this level of uncertainty should not be overstretched by the US government, as otherwise the feared economic slowdown could become more pronounced, which has not yet been anticipated by the market.
Can you also name 2-3 highly weighted stocks from your portfolio? Why are these stocks interesting?
The shares of Tokio Marine and Sumitomo Mitsui Financial Group are currently* in the top 10. Among other things, both are benefiting from the rising interest rate level in their home market of Japan, but also from the persistently higher interest rate level in the US dollar. The top holdings also include the aforementioned beneficiaries of higher market volatility, such as Deutsche Börse.
*As at 31.03.2025.
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