Monthly report May 2023 of the zCapital Swiss ESG Fund (class A)
The fund was down 0.9% in May. We slightly increased the positions in Gurit, SGS and Galenica. We took some profits in Swisscom and Roche.
In May, global equity markets were initially trading in a narrow range. Both the Fed and the ECB continued to raise interest rates. However, Fed Chair Powell indicated that the likelihood of a pause in the rate hike cycle had increased. Towards the end of the reporting period, the topic of artificial intelligence led to a rally in the technology sector.
After the abrupt lifting of all Covid measures, markets were betting on a rapid recovery of the Chinese economy. These hopes are being dashed. Many Chinese companies are reluctant to place large orders, and consumers are hesitant to spend. China remains an important market for many Swiss companies. We are cautious about investing in companies with an above-average share of sales in China.
