Although the chance of a further increase in short-term interest rates does not seem large, we still saw long-term interest rates rise sharply in October. This led to unrest among investors, who fear higher interest charges when companies have to refinance existing loans. As a result, stock markets fell across a broad front, with European large caps losing an average of 3.6% while prices of mid- and small caps fell by 4.8% and 5.9% respectively. Most companies in our fund have little debt and some even have a net cash position. Nevertheless, the fund’s price fell by 4.0%. The quarterly figures published so far show that most companies are still performing reasonably well. However, construction-related companies sometimes see their order books decline. This is often because fewer inventories are held. Small and midcaps in particular are under pressure. This creates great opportunities for investors to buy really good companies at very attractive levels. We do this too and will keep you informed of our new purchases in the coming months. Since the start of the fund in 2016, we have now achieved a 38% return.



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.