July 2022
In July the Sustainable Dividends Value Fund was able to recover most of the ground lost in the previous month. The most important reason for the increase in the share price with 8.2% was the publication of better than expected semi-annual results by many companies. At the same time political and macro economic developments remain unfavourable. Despite the high inflation, global interest rate hikes and declining consumer confidence, the prices of the large stocks in Europe (MSCI Europe Index) increased by 7.6% in July. Mid-sized companies saw a price increase of 8.9% (MSCI Europe Mid Cap Index) and small companies gained on average 9.8% (MSCI Europe Small Cap Index). The balance sheet ratios of the companies in our fund are strong. Most companies have only modest debt and some even have a net cash position. They therefore have little to fear from rising interest rates. This is one of the reasons why we look to the future with confidence in this difficult year. Since its inception in 2016, our fund has now delivered over 66% (+8.1% p.a., after charges), versus 43% for the MSCI Europe Index (+5.6% p.a.).
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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.