August 2024: A quiet summer month
Investors in the Sustainable Dividends Value Fund achieved a 0% return in the past month. Anyone who has not watched the stock market would think that August was a quiet month. However, this was not the case. A momentary panic in Japan caused a sharp correction in the first week of the month. More and more indications of an interest rate cut in September caused prices to rebound in the rest of the month. We were able to take advantage of this by investing our cash at lower levels. Large caps recovered somewhat faster than small caps in Europe. For instance, the MSCI Europe index eventually rose 1.6% while the small cap index actually fell 0.3%. Since the beginning of the year, the return on our fund now stands at 9.6%. Small and mid-caps have lagged sharply behind the stock market in recent years. The prospect of a further fall in interest rates in the second half of the year has investors looking for lagging and sometimes severely undervalued stocks. The valuation of our portfolio is well below that of the market, and we expect to benefit from this in the coming period. Since its launch in 2016, the return is 72%.
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The fund
Sustainable Dividends offers an investment fund that invests in a well-diversified portfolio of European companies at the forefront of the sustainability transition. Our focus is on a disciplined investment process, while applying both qualitative and quantitative financial criteria.