Monthly report December 2024 of the zCapital Swiss Dividend Fund (class A)
The fund gained 9.0% over the year (SPI +6.2%). In December we increased our holdings in Novartis, Roche, Nestlé, Givaudan, VAT Group, Logitech, BKW and Baloise. Profits were realised on ABB, Swiss Re and Julius Bär.
The US and some European stock markets continued to rise at the beginning of December, setting new records. By contrast, the Swiss stock market failed to pick up speed. Even the interest rate cut by the Swiss National Bank did not help. Investors reacted much more strongly to the meeting of the US Federal Reserve. Only two more rate cuts are expected before the end of 2025. Previously, market participants had anticipated three rate cuts.
Since the election of Donald Trump, expectations of his 'America First' policies have soared. However, his economic plans are full of contradictions and his protectionist agenda will tend to have inflationary side effects. In particular, the overheated US equity market could face a challenging start to the new year. This could mark a turning point for the significant relative underperformance of European equities. We will continue to focus on our fundamental research work in the year ahead.
