EUROPEAN MARKET REVIEW AND FUND PERFORMANCE
European equities experienced significant swings in April following the announcement of sweeping tariffs on imported goods by the US President Donald Trump. If those tariffs were expected, the overall level was much higher than expected by the markets. At the trough on April 9th, MSCI Europe was down 12.9%. On April 10th, Donald Trump announced a 90-day pause on reciprocal tariffs, opening the door for negotiations and triggering a rebound in equity markets. The MSCI Europe Index ended the month at -0.8% and Small and Mid-Caps Stocks measured by the MSCI Europe SMID returned +1.5% when the S&P 500 declined by 5.4% (in EUR).
In that context, the top performers in the MSCI Europe were Siemens Energy, Vonovia and ADP, while Kering, Barry Callebaut, Bunzl and BP were the worst performers.
By sectors, Utilities and Real Estate performed the best, up +5,4% and +6,8% respectively while Energy and Consumer Discretionary were the worst performers, down 15.4% and 3.2% respectively.
The Fund returned -0,8% in April (NA share class) versus -0.8% for its benchmark.
In April, our top three positions minus our bottom three positions had a net -3 bps impact.
STOCK PERFORMANCE: TOP CONTRIBUTORS AND DETRACTORS
CONTRIBUTORS
The top three contributors to the Fund’s performance in April were L’Oréal, BAE Systems and Axa.
L’Oréal: L’Oréal is the first cosmetics group worldwide. The stock was up 12.9% (EUR) in April. The company reported better than expected Q1 sales growth which provides relief amidst the beauty category health.
BAE Systems: BAE Systems provides defence, aerospace and security solutions from electronic warfare to armored vehicles . The defence sector benefited from a continued appetite from investors. The stock was up 10.7% in April.
Axa: Axa is an insurance company with activities in property and casualty insurance, in life insurance and in asset management. The stock was up 5.5% in April. The insurance sector performed well in April in relative terms as tariffs do not directly impact insurance activity but more indirectly with impacts on yields, credit spreads and risk assets.
DETRACTORS
The three positions that detracted most from the Fund’s performance in April were Bunzl, LVMH and Partners Group.
Bunzl: Bunzl is an international distribution group, supplying a broad range of food products to a variety of market sectors. The stock was down 22.1% in April. The company published an unexpected Q1 trading update highlighting top line softness and margins pressure in North America and reduced its full year 2025 guidance.
LVMH: LVMH is the world's leading luxury products group, gathering 75 brands.The stock was down 13.4% in April hit by the announcement of tariffs on US imports but also by a disappointing Q1 trading update with a negative organic growth for the group of -3% and -5% for its leading Fashion & Leather Goods division.
Partners Group: Partners Group (PGHN) is a leading global alternative asset manager specializing in private asset investments. Partners Group declined by 11.7% in April as the tariffs announced by D. Trump may deteriorate investment portfolio performance.
