Third quarter 2022
We have arrived at a special moment in the nearly seven-year history of the Sustainable Dividends Value Fund. The companies in the fund are all listed on the stock exchange at a much lower price than what these companies are really worth. In the medium term, we see an average price potential for the shares in the fund of almost 100%. Never before has this number been so high. And with an average valuation of less than 7 times expected cash flow, our sustainable businesses have never been cheaper. The dividend yield of the shares is now well above 5% and this also has never happened before. All in all, these are good prospects for those who dare to bite through the sour apple of a temporary dip in stock prices. We ended the third quarter with a return of -12.4%. The sharp rate hikes in almost the entire world, together with the Russian war rhetoric, are creating uncertainty and fear among investors. The prices of major European companies fell by an average of 4.1% (MSCI Europe Index). Mid-sized companies saw a price decline of 7.3% (MSCI Europe Mid Cap Index) and small companies an average of 9.0% (MSCI Europe Small Cap Index).
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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.