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

Investment approach

The gold mining industry reduced its costs and growth investments due to the obvious gold price reduction in 2013. Therefore most of the gold companies ought to be able to generate a free cash flow in the future, once the gold price exceeds 1,250 USD/oz. The improved profitability will affect the equity price in the middle term positively. Compared to the gold price the valuation of gold producers’ shares is relatively low currently. The chances for the broad commodity market have to be seen mainly in the progressing urbanization of China and the emerging markets, followed by an increasing commodity demand. The fund focusses on companies, which produce commodities, characterized by a favorable supply and demand relation. Actually nickel, platinum and palladium belong to this group. A low supply and a stable demand will result in high prices for the middle and long term, which will give a positive impulse for the profit development of the producers. The DJE - Gold & Ressourcen applies very strict investment criteria: The fund is only invested in companies operating in politically stable areas with a fundamentally attractive valuation. Particularly falling real interest rates will influence the gold price development sustainably, see diagram below.

Chances

  • Exchange rate gains in global investments are possible
  • In the long term, high upside potential for stocks of the gold and commodity sector
  • 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

Risks

  • Shares in the commodity and precious metals sector are generally more volatile than the overall market
  • Currency risks resulting from a high proportion of foreign investments
  • In addition to market price risks (equity and currency risks), there are country and credit risks

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.