Monthly report March 2025 of the zCapital Swiss Dividend Fund (class A)
The fund lost 0.6% (SPI -2.0%). In March, we increased our holdings in TX Group, Inficon, SGS, Novartis, BKW and Accelleron. On the other hand, we took profits in Sulzer, Roche, Holcim, Baloise and Galenica.
As a result of the haphazard US tariff policy, consumer confidence has fallen sharply, and inflation expectations have risen. German Chancellor-designate Friedrich Merz surprised financial markets by proposing a debt brake reform and an infrastructure package. European equity markets then rallied sharply in the short term. Towards the end of the month, however, Donald Trump's announcement that he would impose import tariffs of 25% on cars and car parts unsettled the stock markets.
US tariff policy and growing fears of a trade war are not leaving American consumers cold. Our impression is that the majority of investors are disregarding the issue of punitive tariffs and possible retaliation. Tariffs and deglobalisation create inefficiencies that slow real growth and increase inflationary pressures. This is fundamentally a difficult environment for equity investments.
