Monthly report September 2023 of the zCapital Swiss Dividend Fund (class A)
The fund lost 0.1% (SPI -2.0%) in the month under review. We added to our positions in Roche, Givaudan, DKSH and Accelleron. On the other hand, holdings in Novartis, BKW, Swiss Life, Logitech, Zurich Insurance Group and VAT Group were reduced.
Stock markets had a mixed start to the month. In Europe, concerns about an economic slowdown weighed on sentiment. Nevertheless, the ECB raised interest rates, while the Federal Reserve took a pause. Somewhat unexpectedly, the Swiss National Bank also refrained from raising interest rates. However, it hinted that interest rates may not have peaked yet. In the wake of the global central bank decisions, capital market yields rose to multi-year highs in some cases, weighing on equity prices.
Uncertainties such as rising oil prices and higher interest rates are leading to a kind of buyers' strike and lower stock prices. In conversations with portfolio companies, we are sensing a growing pessimism about the economic outlook. It is becoming increasingly clear that the central banks' actions will not be without painful consequences for the economy and the equity markets.
