July 2024: Growing interest in small and mid caps
A strong start to the earnings season and growing interest in small and mid-caps resulted in a 3.9% share price increase for investors in the Sustainable Dividends Value Fund in the month of July. Since the beginning of the year, the return of the fund now stands at 9.6%. Small and mid-caps have lagged sharply in the stock market in recent years. The prospect of a further decline in interest rates in the second half of the year has investors looking for lagging and sometimes severely undervalued stocks. The first step toward catching up was taken last month. Thus, small caps rose by 4.3% and mid-caps by 2.6%. Large caps lagged behind with an average price increase of 1.2%. The results season is now well under way and quite a few of our companies have published half-yearly figures. In a number of cases these results are better than expected and sometimes this is accompanied by an increase in expectations for the whole year. If these expectations come true, there is still plenty of room for a further rise in stock prices in the coming quarters. Since inception in 2016, we have now achieved a total return of 72% for our investors.
Newsletter
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.