DJE - Gold & Ressourcen PA (EUR)

DJE - Gold & Ressourcen PA (EUR) Header Image
ISIN:
LU0159550077
As at:
20/09/2019
Bid:
142.23 EUR
Offer:
149.34 EUR

Monthly Commentary

In August the DJE - Gold & Ressourcen - gained 1.14%. Its benchmark index (60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)) rose 7.19%. The fund's weaker performance compared to the benchmark is due to the fact that the last trading day of August (XAU -5%) was included in the fund's performance calculation for September. If the last trading day were taken into account, the fund and index would almost level. Gold mining stocks performed well overall in August. The XAU gold mining index rose 13.01% in US dollar terms and by 14.45% in euro terms due to the appreciation of the US dollar against the euro in August. Gold mining stocks thus performed better than the gold price itself. This gained 7.54% in US dollar terms and rose to 1,520.38 USD/ounce. Calculated in euros the profit was higher +8.45% (1,384.26 EUR/ounce) due to the appreciation of the US dollar. The gold price performed well throughout August and gained further momentum, especially towards the end of the month, as the US-China trade dispute escalated. Gold benefited not only from the escalation itself but also from weak equity markets and falling bond yields. Gold rose above USD 1,500/ounce in early August for the first time since the big sell-off in April 2013 and the price of gold reached a six-year high. The price rise was accompanied by strong ETF inflows. The actions of US President Donald Trump, China and the Fed are mutually reinforcing and are expected to keep gold at an elevated level throughout 2019. Gold is increasingly seen as a safe haven as investor uncertainty about the trade conflict and the already weakening economy increases. The World Gold Council expects central banks to buy between 500 and 600 tons of gold this year. The highest positive performance contributions in August came mainly from positions in the gold mining segment including the highly weighted positions in the mining companies Anglogold Ashanti (South Africa), Agnico Eagle Mines (Canada) and Kinross Goldcorp (Canada). By contrast, positions at the Australian gold mining group Northern Star Resources and the chemical groups Evonik Industries (Germany) and Albemarle (USA) had a negative impact. At around 68% the weighting of gold mining shares at the end of August was slightly higher than in previous month (65%). The focus remains on solidly financed producers that generate positive free cash flows even at lower gold prices and also have some growth prospects. Broader commodity and chemical stocks generally performed worse than gold mining stocks in August: the MSCI World Materials index fell -2.13%, the CRB Commodities index -3.36% - both on a euro basis. At the end of the month values denominated in US dollars were partly hedged.

Legal Information / Disclaimer:

The collective investment scheme ("the Fund"), is a fund on a contractual basis under the law of Luxembourg. Regarding the publication of performance data of the Fund it should be noted that the historic performance does not represent an indicator for the current or future performance and the performance data do not take account of the commissions and costs incurred on the issue and redemption of units. First Independent Fund Services Ltd., Klausstrasse 33, CH-8008 Zurich acts as the Swiss Representative (the "Swiss Representative") and NPB Neue Privat Bank Ltd., Limmatquai 1, P.O. Box, CH-8022 Zurich acts as the Paying Agent in Switzerland ( the "Swiss Paying Agent") for the Fund. Copies of the prospectus (incl. management regulations), the Key Investor Information Document, as well as annual and semi-annual reports of the Fund may be obtained free of charge from the Swiss Representative in Zurich.

*) © 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.