As every month, you can read our investment report, in which we offer you a macroeconomic analysis of the market, a presentation of the performance of our funds and their results.
You can also watch our video update on the Digital Funds range.
September proved to be a rather neutral month for the equity asset class. European equities fell slightly (MSCI Europe NR -0.4%), but this was not the case for small and mid caps (+0.5% for the MSCI Europe Small NR), and US equities progressed (MSCI USA NR +2.1%) with the dollar falling against the euro. The first half of the month was bearish. A logical observation after the strong bullish sequence observed throughout August, a bullish sequence that needed to be digested. The second half of the month was of a completely different nature, and offset the sluggish start seen at the beginning of the month. The announcement of the Fed’s first rate cut of 50 basis points, together with the stimulus plans announced in China, provided powerful support for the equity asset class at the end of the month.
Digital Stars Europe Acc posted a +0.7% increase in September, outperforming by +1.1% the MSCI Europe NR (-0.4%). The fund is up +16.7% since the beginning of the year, outperforming its index by +5.1%.
The fund’s pro-cyclical positioning (overweight small and mid caps) has been favourable. The fund’s sector positioning as well, thanks in particular to our two biggest bets: the overweight position in industry and the underweight position in healthcare. Some stocks particularly stood out, such as SÜSS MicroTec (semi-conductors) and Sectra (healthcare technology). The portfolio reviews carried out in September were diversified, mainly increasing our positions in the telecom sector, as well as in healthcare and consumer discretionary. Among the exits were mainly companies from consumer staples (food) and materials sectors. Digital Stars Europe is significantly overweight industrials and financials. The fund is underweight healthcare, consumer discretionary and consumer staples. The UK remains the fund’s top weight at 18.3%, ahead of Italy (first overweight) at 15.3% and Germany at 11.7%. With 5.4%, France remains the largest country underweight.
Digital Stars Continental Europe Acc ended September at +0.6%, outperforming by +1.0% the MSCI Europe ex UK NR (-0.4%). The fund is up +15.9% since the beginning of the year, outperforming its index by +5.1%.
The fund’s pro-cyclical positioning (overweight small and mid caps) has been favourable. The fund’s sector positioning as well, thanks in particular to our three biggest bets: the overweight positions in industry and real estate and the underweight position in healthcare. Some stocks particularly stood out, such as SÜSS MicroTec (semi-conductors) and Sectra (healthcare technology). The portfolio reviews out in September were diversified, mainly increasing positions in industrials and real estate. Among the exits were mainly stocks in the IT sector, as well as in consumer discretionary and materials sectors. Digital Stars Continental Europe is overweight in industrials, as well as in real estate, and underweight in healthcare, consumer discretionary, IT and consumer staples. Italy (first overweight) is still the fund’s top weight, but has been reduced to 15.8%, ahead of Germany at 14.8% and Sweden at 13.7%.
Digital Stars Eurozone Acc achieved +1.7% in September, outperforming by +0.7% the MSCI EMU NR (+1.0%). The fund is up +17.2% since the beginning of the year, outperforming its index by +5.5%.
The fund’s pro-cyclical positioning (overweight small and mid caps) has been favourable. The fund’s sector positioning as well, thanks in particular to three big bets: the overweight in real estate and the underweight in technology and energy. A few stocks stood out in particular, such as SÜSS MicroTec (semiconductors) and CECONOMY (technology). The portfolio reviews out in September were marked by an increase in positions in the financials and utilities sectors. Among the outflows were mainly stocks from the consumer discretionary, industry and paper sectors. The finance sector becomes the fund’s main overweight, just ahead of real estate, followed by consumer discretionary and media. The fund is underweight in consumer staples, materials and energy. Germany becomes the top weighting at 20.9%, followed by France at 19.9% and Italy at 17.8%. Italy remains the most overweight country, and France the most underweight.
Digital Stars Europe Smaller Companies Acc ended September up +0.1%, vs. +0.5% for the MSCI Europe Small Cap NR. The fund is up +17.7% since the beginning of the year, outperforming its index by +8.1%.
The strong gains in some of our holdings, such as SÜSS MicroTec and Titan Cement, and the fund’s good positioning in energy, were offset by the underweight in real estate, as well as by the underperformance of IMMOFINANZ (real estate). The portfolio reviews in September were marked by an increase in positions in the financials and energy sectors. Among the outflows were mainly industrial stocks. The portfolio is now mainly overweight in financials, healthcare and industrials, and underweight in real estate, consumer discretionary and technology. The UK (the most underweight country) remains the portfolio’s largest weighting at 25.6%, ahead of Sweden at 15.7% (the most overweight country) and Switzerland at 8.8%.
Digital Stars US Equities Acc USD ended September up +2.3%, outperforming both the MSCI USA NR at +2.1% and the MSCI USA Small Cap NR at +1.3%. The fund is up +22.0% since the beginning of the year, vs. +21.3% for the MSCI USA NR and +10.7% for the MSCI USA Small Cap NR.
A good stock selection enabled the fund to finish September ahead of its benchmark index, despite the underperformance of small and mid-cap stocks currently overweighted in the portfolio. The latest monthly portfolio review mainly strengthened positions in media and healthcare, and reduced positions in consumer discretionary, energy and financials. The fund is heavily overweighted in industry and finance. The most underweight sectors remain technology and media.