CPR Invest - European Strategic Autonomy - Z EUR - Dist ISIN : LU2617371161

In September, the fund recorded a performance of -3.11%, compared to -1.93% for the MSCI EMU Net Total Return index. Year-to-date, the fund is up 9.85%, compared to 10.81% for its benchmark index.
 
The month was marked by a continuation of the previous month’s environment, with ongoing tensions in the Middle East keeping the price of oil above $100 per barrel. Long-term interest rates were the main market driver during the month, continuing to rise amid ongoing conflicts and sustained high hydrocarbon prices, particularly in France, where the spread with Germany has reached particularly high levels.
After a difficult quarter for electrification-related stocks, whether industrial or technological, these stocks rebounded, notably thanks to continued infrastructure spending and future opportunities, especially after the launch of Muse by Meta. As a result, Legrand, Prysmian, Infineon, and ASM International rose by 3.7%, 3.16%, 5.70%, and 9.9% respectively.
The defense sector was particularly impacted by the rise in interest rates, raising questions about the willingness and ability of European states to continue rearming Europe. Thus, Rheinmetall fell by 13.90%, Renk by 19.75%, and CSG by 19.17%.
One of the main negative contributors was the healthcare sector, as in the previous month, with significant declines from Abivax and Novo Nordisk, down -9.99% and -13.41% respectively.
 
Regarding portfolio movements, we slightly increased our positions in stocks that had suffered the most during the month, favoring non-French stocks, as the environment is expected to remain volatile, particularly in the defense sector (Rheinmetall, Exosens, and CSG), as well as in electrification-related stocks such as Siemens Energy and Prysmian.