Monthly report June 2023 of the zCapital Swiss Small & Mid Cap Fund (class A)
The Fund gained 0.1% in June (SPI Extra +0.4%). Kühne + Nagel was promoted to the SMI blue-chip index in place of Credit Suisse, which meant we had to reduce our position significantly. Gurit was added to the portfolio as a new position. We also increased our holdings in Julius Baer, BKW, SGS, SIG Group, U-Blox and Huber + Suhner.
Global financial markets started June with gains. The US debt ceiling standoff was resolved, averting a potential default. Strong US labour market data added to the optimism. The US Federal Reserve paused after ten consecutive rate hikes. Conversely, the EZB and the SNB raised rates by another 0.25%. Nevertheless, several stock market indices reached new annual or even all-time highs. Towards the end of the month, however, weaker economic data from the eurozone dampened sentiment somewhat.
Half-year reporting will start in mid-July. We expect a mixed picture. Even small reductions in guidance are likely to lead to larger share price movements. However, we also expect positive earnings surprises in our portfolios.
