- During the fourth quarter of 2020, the Sustainable Europe Strategy (the “Portfolio”) returned 10.8 % gross of fees. The MSCI EUROPE TR net (the “MSCI Europe”) returned 10.8 % and the MSCI EUROPE SRI TR net (the “MSCI Europe SRI”) returned 8.6 %.
- 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 fourth quarter while holdings the Growth and Defensive sectors contributed negatively.
- During the quarter, we initiated positions in CNH industrial, Veolia, Alstom and Worldline and exited our positions in the following companies: Suez Environement, Signify, Valeo and Ericsson.
- The Portfolio remains concentrated with 26 holdings. It is well balanced across cyclical, defensive and growth names is exposed to various companies which we think offer attractive risk return profile. The Portfolio 12 month forward P/E ratio is currently 18.7 x.
- The sustainability metrics of the portfolio remain very healthy with our 5 year % of revenue exposed to Sustainable Product and Services estimated at 57%. Currently, as per Vigeo estimate, the portfolio share of sustainable revenue is 43% while it is 24% for MSCI Europe.
SUSTAINABLE EUROPE 4Q20 REPORT