First quarter 2023
The fund has had a good start to the new year. With a return of 6.3%, the recovery that started in the fourth quarter of last year has continued. Most of the companies in the fund reported good numbers for 2022 and have been able to increase dividends compared to the previous year. In general, a further increase in turnover and profit is expected for the new year. Despite the nice price increases in the past two quarters, the valuations of the shares in our fund are still very low. On average, less than 7 times the expected cash flow for next year is currently being paid for our sustainable companies. The dividend yield of the shares is still high at over 4%. All in all, this offers good prospects for our investors. A decline in inflation in both the US and Europe caused the share prices of large European companies to rise by an average of 8.6% (MSCI Europe Index). Medium and small European companies saw an average price increase of 8.1% (MSCI Europe Mid Cap Index) and 5.9% (MSCI Europe Small Cap Index) respectively. A further fall in inflation is expected in the coming quarters, so that Central Banks will not have to raise interest rates much further. This will lead to more calmness in the market and increased confidence among 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.