Monthly report March 2024 of the zCapital Swiss Dividend Fund (class A)
The Fund gained 3.7% in March (SPI +3.9%). We increased our positions in Zurich Insurance Group, Novartis, Roche and Hiag. On the other hand, we reduced our positions in SGS, Holcim, Accelleron and Givaudan.
The chase for records continued unabated in March on stock markets around the world. Even surprisingly high US inflation figures and rising bond yields failed to impress investors. Both the European and US central banks were reluctant to change interest rates. The SNB caused a stir with a surprise cut in its policy rate. As a result, the Swiss franc weakened.
Fed Chairman Jerome Powell has been holding out the prospect of interest rate cuts to the markets for several months now, despite many data points to the contrary. The overall impression is that the Fed is under strong political pressure to cut rates too early in an election year. As a result, the strong momentum in equity markets could continue for some time, in the spirit of "never fight the Fed".
