The UCITS' investment objective is to seek performance through exposure to equity markets, primarily in the Eurozone, by selecting, on a discretionary basis, securities from an investment scope comparable to the MSCI EMU index.
Equity markets closed February visibly down, after a sharp correction in the wake of the strong gains made in January, and the shift in volatility. This correction has now extended to the credit market, with spreads widening. While interest rates have continued to rise in the United States, they have remained relatively stable in the euro zone, with even the 10-year bund dipping 4 bps over the month. This illustrates a change in perception of monetary policies when comparing the United States and the euro zone, while the inflation data shows no particular pressure on Europe (+1.2% in France and the euro zone). The euro seized the opportunity to slacken a little, closing at 1.22 against the dollar, after testing levels of 1.25, a critical level for the outlook on corporate earnings. The Q4 earnings reports have been sturdy, showing growth staging a stronger recovery in 2018, with significant upgrades. The acceleration in organic growth is particularly visible in the cyclical sectors, technology, and other sectors such as hotels and media, which have been rewarded in the portfolio. In contrast, the sectors that are more defensive and sensitive to rate hikes have been penalised.
Share class (SC-EUR)
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.