MeterMore attractive, it should become the leading German stock index DaxThis is the goal that Deutsche Börse has set for itself. A year ago it invested a lot of energy in reforms. This became necessary because Wirecard’s bankrupts got the DAX value of everything, and this set of rules proved unsuitable for quickly removing the company from the so-called Deutsche Börse Elite League.
Now is the finale of the Dax reform: the value has been increased from 30 to 40.From Friday night, it is clear who the new company is: European Aircraft and Armament Company Airbus, Berlin online fashion retailer Zalando, health group Siemens Healthineers, Holzminden perfume and fragrance manufacturer Symrise, Berlin kitchenware box mail order company Hello Fresh, vaccine supplier Sartorius from Göttingen, Volkswagen’s major shareholder Porsche Car Holding AG, Chemical Industry Companies from Essen’s Brenntag Group, sporting goods manufacturer Puma, and German-Dutch biotech company Qiagen, are qualified only before Hamburg consumer goods group Beiersdorf.
Only a few women in the executive committee and the supervisory board
Experts debate whether this really makes the index more modern and attractive. But one thing is already clear: Dax is becoming more and more masculine. The personnel consulting firm Russell Reynolds checked the boards and supervisory boards of ten new recruits and found that few women could be found. Beren Garrijo, the head of Merck, remains the sole head of DAX: in the future, the quota for women will be 2.5%.It looks more feminine on the lower level, but the proportion of women is declining because of Brenntag, Hello Fresh, Porsche, Sartorius and Simris Five companies boarded Dax without a woman on the board. So far, only 4 DAX companies (13%) are in this situation, and there will be 9 (23%) in the future.
Of the 54 new DAX board members, only 7 are women. Russell experts calculated that Dax’s interest rate has so far been 19% and will only be 17.6% in the future. In the Norwegian leading index OBX, at least 30% are women, and in the French CAC it is 40 22%.
In the future, the board of supervisors will also have more members than before. The participation of employees here will also decrease. So far, 26 of the 30 DAX companies have a supervisory board, which is composed of an equal number of employees and shareholders. For the new ten companies, this has happened only twice. The six supervisory boards do not require any employees and are the third of the two companies. The decline in the influence of employee representatives is due to the increasing internationalization of Dax. The index is being expanded to include companies, some of which have different structures and histories from typical previous companies: the two companies operating as a European stock company SE are not determined The joint decisions made at the time of their establishment, including future changes in company size, will be carried forward. According to Russell’s analysis, this is the case with Dax stocks Vonovia and Deutsche Wohnen and newcomers Brenntag and Hello Fresh.
The three companies are headquartered abroad, so they are not subject to a joint decision by Germany. The “old” Dax sees Linde as a plc headquartered in the UK, and Airbus and Qiagen headquartered in the Netherlands.for Porsche SE There is one exception to the parity joint decision, as long as it is only active as a financial holding company. As an important business purpose, it holds a large number of shares in Volkswagen. The two companies, namely Dax stock Fresenius Medical Care and the new entrant Siemens Healthineers, are considered to jointly determine the parent company’s subgroups and are therefore not subject to the joint decision on parity.
This did not harm the company’s performance. They entered Dax because their stock price has developed strongly in recent months and years-based on good business success, but also for the benefit of employees.
Industry portfolio is becoming more and more colorful
Compared with the “old” Dax company, good price development leads to higher valuations. According to Landesbank Baden-Württemberg’s calculations, the DAX weighted P/E ratio is 16, and the new member P/E ratio exceeds 35, so the overall rating of DAX has increased. The most important sector will be industry, which will benefit from the rise of Airbus. In second place is chemistry, whose share remains the same at 16%. The automotive industry still ranks third with about 11%, ahead of the health industry, which has increased from 8% to 10%. With the rise of Symrise, the food/beverage field is now also appearing for the first time. Therefore, the industry mix is becoming more colorful.
The index will change on September 20. For every 100 euros invested in the previous Dax stocks, the index fund must sell a little less than 17 euros and invest in 10 new stocks based on the weight. In the M-Dax value from 60 to 50, the newcomer for about 41 Euros must sell out 100 Euros and invest in the remaining 50 value. After all, approximately 3.5 billion euros are invested in the M-Dax ETF, and approximately 16 billion euros are invested in the Dax ETF.
