Passion for Swiss equities

zMonthly ESG Fund 04/2023

Monthly report April 2023 of the zCapital Swiss ESG Fund (class A)

The Fund increased by 2.8% in the month under review. We have taken an initial position in Gurit. We slightly increased our exposure to Schindler, Komax and Comet and realised some gains on Emmi and Sonova.

Sentiment in financial markets improved surprisingly quickly in April. Investors viewed various banks' problems as isolated cases. Even the slight increase in core inflation rates was unable to dampen optimism in the equity markets. Encouraging economic data, lower energy prices, a progressing easing of supply chains and a satisfactory reporting season so far provided tailwinds.

The economy is performing better than expected in America and to some extent in Europe. In many countries there are more job vacancies than unemployed, and wages are rising to compensate for inflation. The wage-price spiral is already reflected in persistent core inflation. For central banks, these core inflation rates are unacceptable. We therefore believe that interest rates will continue to rise until either unemployment rises sharply or the financial markets correct significantly. We regard expectations of the first interest rate cuts in the US in the second half of 2023 as too optimistic.

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