Monthly report March 2026 of the zCapital Swiss ESG Fund (class A)
In the month under review, the fund decreased by 7.1%. We initiated a position in Bucher Industries. We also increased our holding in Partners Group. Conversely, we slightly reduced our holdings in Swisscom, Hiag Immobilien and Huber+Suhner.
At the start of the month, equity markets reacted with losses to American and Israeli air strikes on Iran. The situation escalated following Iran’s retaliatory measures. Attacks on energy infrastructure also pushed commodity prices higher. Concerns about the negative impact of rising energy costs, as well as the uncertainty surrounding the war’s duration, have led to setbacks in the stock markets.
Future stock market performance will depend on the price of oil and conditions in the bond market. President Trump and Treasury Secretary Bessent pay close attention to yields on 10-year Treasury bonds. These have increased significantly since the start of the war. A further increase is likely to force the President to exercise restraint. No one knows how the conflict in the Middle East will unfold. Consequently, volatility in the stock markets is likely to remain high.
