Passion for Swiss equities

zMonthly Dividend Fund 08/2022

Monthly report August 2022 of the zCapital Swiss Dividend Fund (class A)

The fund lost 2.1% in the reporting month (SPI -3.1%). We increased our exposure to Roche, Swisscom, Baloise and Galenica slightly. On the other hand, we trimmed our holdings in St. Galler Kantonalbank, BCV and Zurich Insurance Group.

The situation on the European inflation front remains fraught. Both the Bank of England and the ECB will be unable to avoid a significant hike in key interest rates. The speech given by Jerome Powell at the annual Jackson Hole Symposium provided a taste of what this could mean for equity markets. The Fed chair’s clear message that financial markets needed to adapt to more restrictive monetary policy sent the stock markets plummeting.

Europe’s energy crisis has now spread to Switzerland. Electricity costs are likely to become a real burden for many businesses. Developments on the wage front constitute another factor of uncertainty. Equity market volatility is likely to remain at a high level, amid thin trading volumes. We remain cautiously positioned.

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