After a slow start in January, our fund managed to recover well in February and March. Better-than-expected annual results from many of our companies produced a positive 2% return for the quarter just ended. Many investors’ fears of a big drop in results proved unfounded in most cases. True, companies do face cost increases due to higher salaries, but in most cases these higher costs are sufficiently compensated by the higher prices they charge to their customers. The downturn in economic growth in China has only a very limited impact on companies in the fund. In the coming quarters, we expect consumer spending to increase as wages generally rise faster than inflation. At the same time companies will most likely start to benefit from lower interest rates in the latter part of the year. If interest rates will be cut earlier in Europe than in the US, exporting companies in Europe will benefit from a weaker euro. All in all, these are enough ingredients for a positive outlook for stock markets in the coming quarters.



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.