Passion for Swiss equities

zMonthly SMC Fund 06/2024

Monthly report June 2024 of the zCapital Swiss Small & Mid Cap Fund (class A)

The Fund lost 1.3% in June (SPI Extra -1.8%). We have completely sold DocMorris and realised gains on Lindt & Sprüngli and BKW. We were buyers in Tecan, Galderma, Straumann and Julius Baer.

While the ECB cut interest rates for the first time since 2019, the Fed left its key rate unchanged. The latest US inflation report added to optimism. US equity markets continued their record run, widening the gap with European equity indices. The announcement of early parliamentary elections in France weakened the euro against the Swiss franc. This, together with moderate inflation, was probably the main reason for the SNB's surprise rate cut.

Many companies are pinning their hopes on a recovery in demand in the second half of the year. This hope has not yet been fulfilled. On the one hand, consumer spending in America is weakening, and on the other hand, companies do not see a turnaround in incoming orders. We expect some companies to announce cost-cutting measures or restructuring programs.

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