Strong business results contribute to positive returns
Good quarterly results from several companies in our fund, together with increasing interest in small and mid-caps, resulted in an increase in the share price of the Sustainable Dividends Value Fund of 3.4% in the past quarter. Many investors’ fears of a major downturn in results proved unfounded in most cases. It is true that companies are facing cost increases due to higher salaries, but in most cases these higher costs are sufficiently offset by the higher prices they charge their customers. We see that some companies have since revised upward the initially cautious expectations for 2024, and we expect that this will continue to happen. We expect that the growing optimism amongst the management of these companies will lead to an improvement in operating results during the year. In the coming quarters, we expect an increase in consumer spending as salaries generally rise faster than inflation. Businesses will benefit from lower interest rates during the year. All in all, we see enough ingredients for a positive outlook for stock markets.
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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.