March 2023
The investors in the Sustainable Dividends Value Fund saw the fund price fall by 0.6% in March. The MSCI Europe Index of large stocks was down 0.1%, the Mid Cap Index lost 2.2% and the Small Cap Europe Index was down 4.1%. At the beginning of the month, prices fell rapidly under the influence of the crisis at various banks. When investors realized that the FED and the ECB might stop raising interest rates sooner, sentiment turned. Falling inflation figures provided an extra boost at the end of the month. The widely held expectation remains that we will see inflation fall further this year and that interest rates will not rise much further. This provides more certainty for investors and more confidence in the future. The companies in our fund often focus on the long-term trend of sustainability in combination with a strong financial basis. Therefore, most of the companies in the fund are less sensitive to a possible recession. We expect that they will also see revenue and profit growth in the current year. This will eventually lead to growing dividends and higher share prices.
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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.