Price gains of 40 percent since the beginning of the year - that puts technology funds in a buying mood. Broadly diversified equity funds, on the other hand, are seeing profit-taking. And real estate funds continue to be sold off.
23 November 2023. FRANKFURT (Börse Frankfurt). The DAX has risen by almost 10 percent since the end of October - and this is also noticeable in fund trading. "We are seeing more turnover and more purchases," reports Jan Duisberg, who trades active funds and ETFs for ICF Bank. Further interest rate hikes are now apparently off the table. "Even if the central banks claim otherwise, the market doesn't believe it." Share buyback programs in the US and the previously extremely high short positions have also contributed to the recovery on the markets. "As a result, there was a year-end rally within three weeks." Meanwhile, Matthias Präger from Baader Bank reports a lot of selling. "That was probably profit-taking."
Sought-after tech funds
The focus of equity funds, which account for the majority of trading: the technology sector. After all, the US technology index Nasdaq 100 has recently risen sharply again. Since the beginning of the year, it is now up 47 percent. Duisberg reports good buys for Deka-Technologie (<DE0005152631>), Franklin Technology (LU0260870158) and Bellevue (Lux) BB Adamant Medtech (LU0415391431), which specializes in medical technology. The two broadly diversified tech funds have gained 38% since the beginning of the year, while the medical technology fund has lost ground.
As far as broadly diversified equity funds are concerned, outflows dominate at Baader Bank, for example from the FT Frankfurt-Effekten fund with German large caps (DE0008478058) and the globally investing funds Quantex Global Value (LI0274481113) and Morgan Stanley INVF Global Opportunity (LU0552385295). On the other hand, DWS Top Dividende (DE0009848119), which also invests globally, was bought. Präger is registering shifts in Threadneedle funds: He sees sales of the Threadneedle Pan European Smaller Companies with second-line stocks from all over Europe including a large share of the UK (LU1829330403) and purchases for the Threadneedle European Smaller Companies (LU1864952764).
Asia funds without a clear trend
While demand for ETFs with Chinese equities has increased recently according to ETF traders, this is not the case for active China funds. "Things are quiet," Präger notes. He reports outflows at a low level for the DWS Top Asia (DE0009769760) and inflows for the JPMorgan Greater China (LU0117841782).
Mixed funds in demand
According to Duisberg, some mixed funds are also popular, such as the defensive Kapital Plus from Allianz Global Investors (DE0008476250) and the balanced Ethna-AKTIV from Ethenea Independent Investors (LU0136412771). "Traditional bond funds, on the other hand, are hardly being bought." Buying interest in pure money market funds has also continued, as Präger notes.
Real estate funds: "Still almost exclusively sales"
There is also still a lot going on in real estate funds, as Duisberg notes - with almost only sales. "The rise in interest rates and refurbishment costs are making themselves felt." The revaluation is continuing, but the situation is not "dramatic" either. Duisberg registered the most outflows for Deka-ImmobilienEuropa (DE0009809566), while UniImmo Deutschland (DE0009805507), UniImmo Europa (DE0009805515) and HausInvest (DE0009807016) were also clearly sold. Duisberg only sees purchases at a low level for the Swiss Life European Real Estate Living and Working (DE000A2ATC31) and the Deka-ImmobilienNordamerika (DE000DK0LLA6).
Duisberg
The prices on the stock exchange are lower than those quoted by the fund companies. In return, investors receive their money immediately. If they want to sell via the fund company and register this now, they will receive the redemption price applicable in one year due to the holding periods.
By Anna-Maria Borse, 23 November 2023 © Deutsche Börse AG
Anna-Maria Borse is a finance and economics editor specializing in financial markets/stock markets and economic topics.
Feedback and questions to redaktion@deutsche-boerse.com
Borse