Monthly report November 2023 of the zCapital Swiss ESG Fund (class A)
The Fund was up 5.6% in November. We exited Ypsomed and took an initial position in Bachem. We also sold our entire holdings in Vontobel shares. Other purchases included Swisscom and Roche.
Weaker-than-expected industrial data and a cooling US labour market led to a significant decline in government bond yields, which in turn fueled equity markets. US inflation figures for October, which were slightly below expectations, provided another strong boost. Following the rally, some stock indices were trading close to their highs for the year.
Many market participants are currently betting on a soft landing with several interest rate cuts in 2024. Such aggressive rate reductions are only conceivable in the event of a significant economic slowdown. The result would be a period of falling earnings estimates, which in the past has usually led to lower share prices.
