January 2024
After two months of significant price increases at the end of last year, the stock prices in our fund saw an average decrease of 3% in January. Uncertainty about the timing of the first interest rate cut by central banks and the expectation of lower economic growth in 2024 were contributing factors. The technology, particularly the chip sector, managed to largely avoid this trend. Investor enthusiasm for this sector led to a price increase of over 10%, resulting in the MSCI Europe Index ending with a slight gain, while the European small and mid-cap indices closed the month negatively. So, do we have no exposure to technology companies at all? Fortunately, we do! Examples of high-quality technology companies in our fund include Swedish companies Alfa Laval and SKF, Norwegian medical technology company Medistim, or the Dutch company TKH with its ‘vision’ and ‘connectivity’ technology. These stocks trade at modest multiples, making them attractive investments for our fund. Since the fund’s inception in 2016, we have achieved a return of over 52%.
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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.