Factsheet: August 2021
The Fund's objective is to achieve optimal capital growth over the long term through the active management of a portfolio of large-capitalisation stocks based primarily in a member country of the European Union or the European Economic Area.
The investment strategy is based on a fundamental analysis. The stock selection process is based on the activity of companies, their governance, financial structure, and development prospects. The fund aims to identify companies with dominant positions, high reinvestment capacity, and low debt.
The recommended investment horizon is 5 years. The reference currency is the Euro.
Summer vacations are not always a synonym of calm on the markets. The month of August was relatively volatile in Europe. The strong market growth since the beginning of the year, linked to excellent economic indications and a very robust recovery, appear to be influenced by renewed fears, this summer, of a sudden return of inflation and by profit taking attitudes of some investors in order to protect themselves from a possible slowdown of the economic recovery, or even from a new wave of contaminations in autumn.
Despite this volatility, European markets nevertheless had a good month of August, with the Euro Stoxx 50 gaining 2.50%, the CAC 40 1.05% and the Stoxx Europe 600 2.53%. The basic resources sector (+7.21%) was, by far, the best performer during the month, unlike the energy sector (-4.81%), which receded after a strong start of the year.
The Fund tailed the Stoxx Europe 600 index (+1.98% versus +2.53%). The top three performers this month are ASML (+10.41%), Novo Nordisk (+12.73%) and Spirax-Sarco (+6.88%) and at the bottom came LVMH (-8.63%), Coloplast (-3.99%) and Pernod Ricard (-5.25%).
ASML has once again reinforced its position as a leader in the latest generation of semiconductor manufacturing technology and is seen by the market as an essential and indispensable tool.
The decline in LVMH and Pernod Ricard was mainly due to China's decisions to limit unreasonable revenues. The luxury sector will have suffered from this announcement, but the medium-term outlook seems relatively favourable.
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