Real estate funds are suffering from higher interest rates and restructuring requirements. The wave of selling on the stock market is therefore continuing. Share prices, on the other hand, are constantly climbing to new heights - so investors are happy to take profits.
14 December 2023. FRANKFURT (Börse Frankfurt). New all-time highs in the DAX and Dow Jones - the year-end rally on the stock markets is also making itself felt in fund trading. "There's more going on here, we also had an extreme movement," explains Matthias Präger, who trades funds for Baader Bank. However, there is unease regarding real estate funds. The wave of selling is continuing and share prices are crumbling, as Jan Duisberg from ICF Bank reports. The downward trend has been observed on the stock market for some time, but at the end of November the first real estate fund itself devalued its portfolio significantly in a regular valuation, namely Leading Cities Invest (DE0006791825) of KanAm Grund Kapitalverwaltungsgesellschaft by around 10 percent. The share price fell even more. Duisberg speaks of a "dramatic revaluation".
The losses for the other real estate funds are more moderate. According to Duisberg, HausInvest (DE0009807016) and UniImmo Europa (DE0009805515) are among those affected. Fokus Wohnen Deutschland (DE000A12BSB8), which was spared for a long time, has also been hit hard. "The residential rental market is also under pressure due to high interest rates and the need for renovation." CS Euroreal in euros and Swiss francs (DE0009805002, DE0009751404), which has been in liquidation since 2012, is currently benefiting from an upcoming distribution.
Duisberg
Good turnover with equity funds
As far as the equity funds, which are also high-turnover, are concerned, sales dominate at Baader Bank as usual - despite rising prices. Präger mainly sees sales in the two German equity funds Fondak (DE0008471012) and DekaFonds (DE0008474503) and in the BlackRock Global Funds Continental European with European stocks (LU0224105477). However, he also registered sales in the internationally investing funds DWS Akkumula (DE0008474024) and Quantex Global Value (LI0274481113). Präger reports "smaller" purchases for the Comgest Growth Mid-Caps Europe (IE0004766014) and Robeco BP Global Premium Equities (LU0203975437). ICF trader Duisberg also observed profit-taking in Allianz Growth Europe (DE0008481821).
AI funds with price gains of over 40 percent
Duisberg also continues to see good sales in technology funds, such as DWS Artificial Intelligence (DE0008474149) and DWS ZukunftsInvestitionen (DE0005152482). The former focuses on technology companies involved in artificial intelligence, including in the fields of information, communication and biotechnology, while the latter focuses on promising infrastructure and industrial companies. The share price performance differs considerably: one has gained 41% since the beginning of the year, the other 11.4%.
As far as Asian shares are concerned, Präger is currently cautious. "The markets are not doing well," he remarks with regard to Hong Kong's Hang Seng share index. Templeton Asian Growth (LU0029875118) and Fidelity South East Asia (LU0069452877), for example, are therefore being sold.
Mixed funds with profit-taking
Many mixed funds have also performed well in recent months, which is why, according to Duisberg, it is often time to cash in. Universal Investment's Prisma Aktiv (DE000A1W9A77), for example, is affected. Präger reports a relatively high number of sales for the ARERO - Der Weltfonds (LU0360863863), which focuses on equities, bonds and commodities. "The fund was suspended from trading for a long time due to its investments in Russia and is now tradable again." Also on the sales lists: bond funds such as the Frankfurter-Sparinrent Deka (DE0008479981). Money market funds, such as those from Union Investment and DWS (<DE0009750133>, LU0225880524), are still popular. "Although demand is no longer quite as extreme, the funds are still in demand."
Gold's new all-time high at the beginning of the month will have no impact. Präger sees losses at a low level in the BGF World Gold Fund (LU0171305526).
By Anna-Maria Borse, 14 December 2023 © Deutsche Börse AG
Anna-Maria Borse is a finance and economics editor specializing in financial markets/stock markets and economic topics.
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