The end of the vacation season and small price swings on the stock markets are affecting trading in investment funds. Only money market portfolios show a sustained buying mood.
14 September 2023 FRANKFURT (Börse Frankfurt). In fund trading on the Frankfurt Stock Exchange, the players are waiting for new impulses. "We are seeing very quiet trading," reports Matthias Präger from Baader Bank. The consolidation on the European stock markets, which has been going on for months, together with the predominantly weak economic data, has caused uncertainty. "Sales have been predominant for months," confirms Jan Duisberg from ICF Bank. Both traders see it as a good sign that prices have not really fallen sharply so far. The currently very negative sentiment also gives hope for a better future. However, it remains unclear when this will come.
Mixed trend in classic equity funds
With rather thin turnover, Präger sees a majority of purchases in the German and European funds in the DWS Deutschland (DE0008490962) and the Gottlieb Daimler Aktienfonds DWS (DE0009769901). The DWS German Equities Typ O (DE0008474289), the DWS Investa (DE0008474008) and the DWS Top Dividende (DE0009848119), on the other hand, were sold. In Asia-focused funds, there were some inflows in Robeco Asia Pacific Equities (LU0084617165) and outflows in UBS EF China Opportunity (LU0067412154) amid low activity.
Präger
As usual, some thematic funds with a high-tech connection appear in the books of ICF Bank. Duisberg sees "quite nice turnover" in the Franklin Technology Fund (LU0260870158) and the DNB Fund - Technology Retail A (LU0302296495). The same applies to the BGF World Healthscience Fund (LU0171307068) from the healthcare sector, which is in good demand.
In addition, investors continue to back mixed funds such as the Flossbach von Storch Multiple Opportunities (LU0323578657), which is a "perennial favourite" and now has a fund volume of almost 26 billion euros. According to Duisberg, the ÖkoWorld Klima-Mischfonds (LU0301152442) has also been well received. "Due to the 'eco/sustainability' label, we see quite nice sales here again and again," explains the trader.
Real estate fund buyers with larger volumes
In the segment of real estate funds, which have recently been under heavy pressure, the sell side tends to predominate with comparatively brisk trading, without prices collapsing further. "It looks as if the securities are moving from the weak to the strong hands," Duisberg suspects, looking at the often larger volumes of purchases. The market is currently in a discovery phase in which the players are trying to carry out a realistic revaluation of the portfolios.
The big sellers have largely done their homework: "Those who wanted/had to do something are slowly coming to the end. Market participants are focusing on CS Euroreal AD CHF (DE0009751404), HausInvest (DE0009807016) and UniImmo: Europa (DE0009805515), for example, where the selling pressure is slowly easing. For a real turnaround, the market is waiting for positive news, which is still in short supply in the construction industry.
Duisberg
Money market funds remain popular
At Baader Bank, the most activity is in the segment of money market funds. "Here, turnover has risen massively for months," reports Präger with reference to the meanwhile again more attractive yield expectations of such securities. For example, the Nordea 1 - Norwegian Short-Term Bond (LU0078812822) or the UniReserve: Euro (LU0055734320) are used as "parking options". In addition, Duisberg reports that in the area of bond funds, the DWS Vermögensbildungsfonds R (DE0008476516) is "doing a bit well again". The fund, which was launched at the end of 1970, currently only has a volume of around 470 million euros and for a long time there had been no turnover at all.
By Thomas Koch, 14 September 2023 © Deutsche Börse AG
Thomas Koch is a CEFA investment analyst, investment specialist for structured products and certified certificate advisor. Since the beginning of 2006, he has been covering events on the capital markets as a freelance journalist.
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