Monthly report July 2024 of the zCapital Swiss Dividend Fund (class A)
The fund rose 2.5% in July (SPI +2.7%). We increased our holdings in Sulzer, Nestlé, Julius Baer and Valiant. We reduced our positions in Roche, Lem, SGS, Logitech, Holcim and Accelleron.
Weak economic data fuelled hopes that the Federal Reserve would cut interest rates in September. The slight month-on-month decline in US inflation figures added to the optimism. Some of the Magnificent Seven stocks disappointed with their quarterly results, putting some of the high-flyers in the technology sector under considerable pressure. In Switzerland, too, there were some strong reactions to the earnings reports.
In addition to the turbulent earnings season, the upcoming US elections are adding uncertainty. If Kamala Harris is elected, the financial markets are likely to react neutrally, while Donald Trump could cause more volatility. Our view of a slowing economy has been confirmed by the half-yearly reports so far. We believe that negative surprises are not yet over.
