Passion for Swiss equities

zMonthly Dividend Fund 02/2023

Monthly report February 2023 of the zCapital Swiss Dividend Fund (class A)

The Fund declined by 0.4% in the month under review (SPI -1.3%). We slightly reducing positions in Schweiter, Nestlé, Holcim, ABB, Zurich Insurance Group and Swisscom.

Investors were unimpressed by central bank rate hikes at the beginning of the month. The US labour market is proving extremely robust. The release of the minutes from the last Fed meeting also made it clear that market participants should be prepared for interest rates to stay "higher for longer". As a result, hopes of an imminent pivot by the central bank were dashed.

Apart from inflation, the labour shortage is the biggest challenge for companies. Wage pressures are therefore likely to persist. The SNB's monetary policy is far too expansionary relative to economic developments. We therefore expect the central bank to raise its policy rate several times this year. In this interest rate environment, equity markets have performed surprisingly well so far this year.

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