The fourth quarter was by far the best quarter of the year for us and investors in the fund saw the value of their investment increase by 9.7%. By comparison, the MSCI Europe index rose 6.4% in the quarter. The prospects of an interest rate cut in 2024 in both the US and Europe caused a return of investor confidence. This meant price recovery in stock markets and our small and mid-caps in particular managed to benefit. Despite the nice price recovery in Q4, many of our companies are still undervalued. That valuation is often low not only compared to their own history, but also compared to what, for example, private equity investors are willing to pay for such companies. An example of this is KKR’s recent bid for SMS plc. The private equity investor announced its intention to delist the company at a price more than 40% higher than the share price at the time of the announcement. Partly because of this, the share price rose over 50% in the past quarter. Naturally, this also made a nice contribution to our fund’s return. In 2023, we achieved a return of 5.6%, while the MSCI Europe Index added 15,8% for the year.



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.