- During the first quarter of 2021, the Sustainable Europe Strategy (the “Portfolio”) returned 7.7% gross of fees. The MSCI EUROPE TR net (the “MSCI Europe”) returned 8.4% and the MSCI EUROPE SRI TR net (the “MSCI Europe SRI”) returned 6.6%.
- Through the year 2020, the Portfolio returned 7.9% gross of fees while the MSCI Europe returned -3.3% and the MSCI Europe SRI returned 1.4%.
- Holdings in the cyclical sectors contributed the most to Portfolio returns during the first quarter while holdings in the Growth sector contributed negatively.
- During the quarter, we initiated positions in ENEL, Eutelsat Communication and Grifols and exited our positions in the following companies: Orange, Smith & Nephew, Air Liquide, Orpea and Roche.
- The Portfolio remains concentrated with 24 It is well balanced across cyclical, defensive and growth names and is exposed to companies which we think offer attractive risk return profiles. The Portfolio’s 12-month forward P/E ratio is currently 18.2x, at a small premium vs the European market.
- The sustainability metrics of the portfolio remain very healthy with our 5 year % of revenue exposed to Sustainable Product and Services estimated at 56%. Currently, as per Vigeo estimate, the portfolio share of sustainable revenue is 41% while it is 23% for MSCI Europe.
SUSTAINABLE EUROPE 1Q21 REPORT