Sustainable
We invest in companies that benefit from structural trends in the European economy and contribute to a more sustainable Europe.
Dividend
Dividend growth signals financial discipline, strong cash flows and a robust business model.
Value
We look for undervalued companies with a clear long-term perspective, with valuation discipline at the core.
Our approach: a bottom-up strategy
Sustainable Dividends applies a clearly defined bottom-up investment strategy. We do not start from predefined sectors, macroeconomic themes or top-down allocation decisions. Instead, we select individual European companies based on quality, dividend growth, valuation and sustainability.
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Our analysis starts with the company itself. Only when a company meets our criteria is it included in the portfolio. As a result, the sector allocation of the fund is a consequence of our selection. This leads to a portfolio that is naturally aligned with structural developments in Europe.
From macro to micro
Our strategy starts with a broad universe of European equities. From this universe, we use screening and analysis to identify a select group of companies that fit our investment philosophy.
This approach results in a clear and structured selection process. We start broadly, but gradually build a concentrated portfolio of companies in which we have strong conviction.
Dividend — Value — Sustainability
Our strategy is built on three pillars: dividend growth, attractive valuations and sustainability. We believe that companies combining these factors are better positioned to create long-term value.
We view dividends as an indicator of quality and strong cash flows. Valuation determines the right entry point, while ESG integration helps us better understand risks and select future-proof companies.
The result is a concentrated portfolio of approximately 20 to 30 European equities.
Our screening criteria
Before a company can be included in the portfolio, it is assessed based on objective criteria. This initial screening helps us focus on companies with strong fundamentals and predictable cashflows.
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We focus on the following:
The screening is repeated periodically, ensuring that companies which consistently meet the criteria are retained, while new companies can be added once they meet the requirements.
Integrated analysis and valuation discipline
Following the initial screening, we conduct an in-depth integrated analysis in which fundamental factors, ESG considerations and valuation come together. We assess companies based on their business model, financial position and capital allocation, with the aim of selecting companies that can create sustainable value for shareholders.
Sustainability is not a separate step, but an integral part of our analysis. We consider environmental impact, social responsibility and governance, as well as the role that products and services play in broader societal transitions. By integrating ESG throughout the process, we aim to better understand structural risks and identify future-proof companies.
Alongside quality, valuation plays a central role. We only invest when a company is attractively valued relative to our estimate of intrinsic value. By targeting a margin of safety between the current market price and our assessed value, we seek to limit downside risk and create potential for long-term returns.
Portfolio construction
The final portfolio reflects a combination of conviction, valuation and dividend potential. Each position is weighted based on our analysis, resulting in a balanced mix of stability, quality and growth.
With approximately 20 to 30 carefully selected European equities, we combine diversification with focus. This approach enables us to actively capture opportunities while remaining true to our core principles.
Our principles
Our strategy is driven by a number of clear principles that give direction to every investment.
Long-term focus
We focus on companies that can create value over multiple years, instead of following short-term movements.
Discipline in valuation
Entry moments are determined by valuation and not by market sentiment.
Risk management
Through diversification and fundamental analysis we aim for a stable portfolio.
Consistency
We follow a structured process and avoid ad-hoc decisions.