April 2025: Focus on undervalued European companies
Investors in the Sustainable Dividends Value Fund saw the value of their investment increase by 2.6% over the past month. Slowly but surely, other investors seem to be paying more attention to the undervalued European companies we invest in. An obvious example is the recent takeover bid for Swedish Biotage, about which more below. A reasonable start to the earnings season has also contributed to the positive monthly returns. The introduction of US trade tariffs seems to have a very limited impact on our stocks so far. On average, European large caps in the MSCI Europe index posted returns of -0.8% in April, while European small caps gained 1.8% on average. At 8 to 9 times the expected cash flow for next year, the current valuation of the shares in our fund is very low. We see plenty of room for further price appreciation if our companies manage to continue their current positive earnings development. Investors in our fund achieved almost 80% return on their investment since its launch in 2016. For 2025, the counter now stands at close to 9% return.