Factsheet: April 2021
Strategy
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.
Markets
Despite an extension of lockdowns and delays in vaccination programs, European markets ended the month on a positive note. Indicators are clearly showing a recovery and remain supported by Governments' budget plans and the decisions of the European Central Bank.
Christine Lagarde, the President of the Bank, has once again expressed the Bank's unconditional support for as long as the economy needs it. However, unlike US rates, European long rates have risen slightly, with French and German 10-year rates, in particular, however this does not bring major concerns about a quick return of inflation.
Over the month, the EuroStoxx 50 gained 1.29% and the CAC 40 3.27%. The retail sector pursued its comeback (+5%) while the automotive sector declined after an excellent start to the year (-5%).
The Fund
After the strong sector rotation at the beginning of the year and the excessive speculative behaviours that marked the first quarter, markets seem to have stabilised in April, while continuing to rise slightly.
This trend, along with the publication of excellent results for several companies in the portfolio, enabled the fund to increase its outperformance of the indices, with an increase of 4.29% over the month.
LVMH (+11%), Swedish company Alfa Laval (centrifuges, +9%) and Sonova (hearing aids, +8%) were among the winners. The only stock in decline was Christian Hansen (-1.2%).
LVMH (+11%), Swedish company Alfa Laval (centrifuges, +9%) and Sonova (hearing aids, +8%) were among the winners. The only stock in decline was Christian Hansen (-1.2%).
Although this period of uncertainty may continue for some time, we remain confident in our management philosophy and the quality of our portfolio companies, which are still characterised by strong earnings, low debt and strong growth prospects. We therefore do not foresee any major rebalancing in the short-term.
For more information, please email us: contact@fisconsult-sinews.com
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