The objective is to grow its net assets by selecting stocks that are listed on the international equity markets, notably in the infrastructure sector, over the recommended minimum investment period.
The performance logged by the international equity markets in May (+3.6% for the MSCI ACWI in EUR) was mainly due to the rise of the dollar. In USD terms, the MSCI ACWI's performance is actually in the red (-0.2%) and varies by region: United States +2.2%, Europe -4.2% and Emerging -3.8% in USD. Investors were worried by the tense geopolitical climate (with a trade war and protectionism, renewed US sanctions on Iran, and political instability in Italy) as well as the slowdown in growth, especially in the euro zone. In the United States long bond yields fell, while in Europe peripheral rates rose sharply with the Italian crisis, when German bond rates returned to December levels. The fund posted a performance of +2.5% for the month, underperforming the equity markets. In this, it was penalised by under-exposure to US equities and thus to the USD, and our overexposure to European and emerging equities. The best contributors to performance were, unsurprisingly, US companies, especially in the construction sector (Vulcan Materials, Martin Marietta and Granite Construction), while the worst contributors were Rubis, Italgas, Gap and Orsted. A position has been constructed on the Brazilian highway concession operator, EcoRodovias, whose stock price was heavily impacted by the political situation in Brazil as well as the truckers' strikes. The stock is benefiting from the: 1) Resumption of traffic in Brazil. 2) Improved duration of its asset portfolio. 3) Low interest rate environment. And 4) Attractive valuation of the stock. A position was also initiated in Plains All American Pipeline, a midstream specialist in crude oil transportation in various North American basins. The company should benefit from the lack of transport infrastructure in the Permian, the most prolific basin. Meanwhile, we have reduced our exposure to Italian infrastructure (SNAM, Terna) which is very sensitive to the increase in Italian long-term interest rates. We also took our profits on Eiffage, which outperformed its counterpart Vinci, and reduced our exposure to Gibson Energy and Airports of Thailand.
-1.20 %
–
0.31 %
3.52 %
1.16 %
29.85 %
5.36 %
44.70 %
3.59 %
Share class (A-EUR)
Benchmark
(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.