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
International equity markets lost only 0.8% in June (in EUR) in a high volatility climate linked to escalating trade tensions. The euro remained stable against the US dollar this month. While June began well, with a controlled message from central bankers, which brought visibility to investors, it was unsurprisingly Donald Trump who threw oil on the fire with the establishment of new customs barriers, and the threat of raising the stakes if China considered retaliation. Despite the anxiety-inducing climate, the published macroeconomic data does not suggest a general slowdown in the economy. Turning to the central banks, a difference in its cyclical positioning has prompted the US Federal Reserve to continue hiking its short-term rates, while the ECB will not launch this trend before autumn 2019. Long-term rates remained unchanged month-on-month in the United States, resulting in a flattening yield curve. The fund posted a performance of -1.2% in June, underperforming the equity markets. In this, it was penalised by its under-exposure to US equities, and its over-exposure to European and emerging equities. The best contributors to performance were Aéroports de Paris and Mexican airport operator GAP, while the worst were Rubis and Airports of Thailand. Aéroports de Paris has obtained the French Government's green light for its privatisation (Pacte Bill). GAP has benefited from the new tone presented by López Obrador, Mexico's newly elected president, who wants to grow infrastructure spending while reducing the public deficit. GAP published traffic figures up +13% y-o-y in May. Rubis lost 10% in June after being downgraded by a broker. Meanwhile, we strengthened our position on Ø rsted, which has launched the divestment process for its electricity distribution business in Denmark, valued at $3.5 billion
(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.