Fund: “Focus on gold and China”

In fund trading, the turnover of funds with gold mining stocks and stocks from China is conspicuously high. But the “old” favorites, tech funds, are also still in demand, while sustainability funds are struggling.

24 October, 2024 FRANKFURT (Frankfurt Stock Exchange). The ever new highs in the price of gold are also making themselves felt in fund trading. “As in ETF trading, precious metals are currently the big topic for us,” reports Ivo Orlemann, who trades actively managed funds and ETFs for ICF Bank. Overall, there is also a lot going on. “Turnover is good, partly because of the all-time highs on the stock market,” explains Anja Deisenroth-Boström, a trader at Baader Bank. The DAX, Dow Jones and S&P 500 recently reached new record highs and are currently trading just below them.

The price of gold is also rushing from record to record, while the price of silver has climbed to its highest level for twelve years. Orlemann reports high inflows into mining funds with shares in gold and silver producers. Allianz Global Metals and Mining (LU0604766674), which focuses on producers of various commodities, is also in demand. However, Deisenroth-Boström mainly reports losses, for example in the BGF World Gold Fund (LU0171305526), whose price has risen by 45 percent since the beginning of the year.

Climate protection has a hard time

Trading in traditional equity funds goes back and forth. According to Deisenroth-Boström, the DWS Concept Platow with German equities (LU1865032954) and terrAssisi Aktien with international stocks (DE0009847343) are on the shopping lists. In contrast, Fondak with German equities (DE0008471012), Allianz Europe Equity Growth with European growth stocks (LU0256839191) and the Stuttgarter-Aktien-Fonds from IP Concept with international equities (LU0383026803) were sold.

“Funds with a focus on sustainability are more likely to see outflows,” notes Orlemann. The ÖkoWorld ÖkoVision Classic (LU0061928585) and DKB Nachhaltigkeitsfonds Klimaschutz (LU0117118124), for example, were affected by outflows. 

China: “Rollercoaster ride” generates turnover

Trading volumes in Asia are unusually high. This is because various economic support measures taken by the Chinese government have caused a lot of movement on China's stock markets in recent weeks. The MSCI China first made a big leap upwards, then there were losses - the government's measures were not enough, it was said. “It was a rollercoaster ride,” comments Deisenroth-Boström.

She reports very high turnover and predominantly purchases of JP Morgan China (LU0210526637), Invesco Greater China Equity (LU0048816135) and JPMorgan Pacific Equity with shares from the entire Pacific region (LU0052474979). The DWS Top Asia (DE0009769760), the Schroder ISF Emerging Asia (LU0181495838) and the Baring Hong Kong China (IE0000829238) were sold.

Tech funds: set for further gains

According to Orlemann, technology funds remain among the favorites. Fidelity Global Technology in distributing and accumulating form (LU0099574567, <LU0346389348<) are popular. In contrast, the Deka-Technologie (DE0005152623) and Franklin Technology (LU0140363697) funds tended to be sold. The Fidelity fund has gained almost 20 percent since the beginning of the year and just under 21 percent over the past five years.

Money market funds popular

According to Deisenroth-Boström, money market funds, such as the DWS ESG Euro Money Market (LU0225880524) and the CB Money Market Germany (LU0052221412), remain in demand. It reported outflows for the mixed fund ARERO - Der Weltfonds (LU0360863863), which invests in equities, bonds and commodities.

Real estate funds: trading in both directions

Trading in real estate funds has no clear direction. “There is always something going on, sometimes there are purchases, sometimes sales, for no apparent reason,” notes Orlemann with regard to the high-volume funds HausInvest (DE0009807016) and UniImmo Global (DE0009805556). A very large sale of shares in Grundbesitz Europa (DE0009807008) was “price-friendly”. “Buyers are obviously being found.”