Monthly report May 2023 of the zCapital Swiss Dividend Fund (class A)
The fund lost 1.1% in May (SPI -1.9%). We built up a position in Luzerner Kantonlbank for the first time. We made further acquisitions in Roche, SGS, Swiss Re and DKSH. We reduced our exposure to Logitech, EMS-Chemie, ABB, BKW and Swisscom.
In May, global equity markets were initially trading in a narrow range. Both the Fed and the ECB continued to raise interest rates. However, Fed Chair Powell indicated that the likelihood of a pause in the rate hike cycle had increased. Towards the end of the reporting period, the topic of artificial intelligence led to a rally in the technology sector.
After the abrupt lifting of all Covid measures, markets were betting on a rapid recovery of the Chinese economy. These hopes are being dashed. Many Chinese companies are reluctant to place large orders, and consumers are hesitant to spend. China remains an important market for many Swiss companies. We are cautious about investing in companies with an above-average share of sales in China.
