The Fund posted a negative performance in September, penalized by the underperformance of several stocks in the portfolio.
Novo Nordisk was the most significant detractor. The stock faced multiple negative developments, including potential competition for its weight loss and diabetes drugs, pricing concerns in the US, and disappointing results from its weight loss pill currently in development.
Samsung Electronics also negatively impacted performance, as it was outperformed by its rival SK Hynix in the artificial intelligence memory chip sector.
Conversely, our investments in Taiwan (TSMC) and China (VIP Shop) contributed positively to the Fund's performance.
We maintain a positive outlook on equities. In a context of gradual economic slowdown and global monetary easing, risky assets are expected to perform well, provided there is no recession.
Our portfolio strategy is balanced, integrating high-growth equities with relatively high valuations alongside lower-growth equities that offer high visibility and attractive valuations.
Our top picks include Synopsys and Cadence, whose software is utilized by chipmakers like Nvidia for designing and testing processors. These companies are also experiencing growth driven by the increasing interest from firms such as Microsoft and Google in developing their own chips, particularly for artificial intelligence applications.
We are progressively increasing our exposure to small- and mid-cap companies, which allows us to further diversify our portfolio.
North America | 65.1 % |
Asia | 20.2 % |
Europe | 10.2 % |
Latin America | 2.6 % |
Asia-Pacific | 1.9 % |
Total % Equities | 100.0 % |
Market environment
Major indices reached all-time highs during the month, driven by monetary easing from central banks.
Chinese equities surged towards the end of the period as Beijing's stimulus measures boosted optimism about the recovery of the world's second-largest economy. These measures aim to counter monetary contraction, address the collapse in the property market, and revive the struggling stock market.
The Federal Reserve initiated its easing cycle with an aggressive 50 basis point cut in its key rate, while the European Central Bank continued to reduce its key rates by 25 basis points.
Economic indicators in the United States remain robust, with rising retail sales and industrial production, a mixed but solid employment market, and falling inflation. In contrast, economic activity in the eurozone has been more lackluster.