CPR Invest - Climate Action Euro - I EUR - Acc ISIN : LU1530901146

In September 2026, climate news mainly highlighted the growing materiality of physical risk and the acceleration of the energy transition. In South Asia, the glacial-rock collapse of Langtang Lirung in Nepal, which occurred on August 26 but whose consequences dominated the start of the season, involved around 2 cubic kilometers (!) of rock and ice; it triggered deadly floods in Nepal and Tibet, with nearly 1,400 deaths, thousands missing, and an estimated cost between $4 and $7 billion. This followed a scorching summer in France with historic wildfires and a landscape permanently changed. In response to these disruptions, Climate Week NYC mainly emphasized the electrification of the economy, networks, and storage: the discussed objective is to bring electricity to 35% of global final demand by 2035, while more than 2,500 GW of renewable, storage, and large consumption projects are still awaiting connection. Our message in favor of investment remains that capital will need to shift toward network infrastructure and flexibility assets to help with the transition, and to support developing countries for which the cost of capital can be significantly higher.

The month of September was marked by continued publication of high inflation figures, economies more resilient than expected, central banks clearly engaged in a process of raising rates on both sides of the Atlantic, and markets that are beginning to slow down: The S&P 500 ended the month roughly unchanged (about -0.8%), while the financial sector significantly underperformed (-7.3% for the month, its worst monthly performance since March 2023). The Eurostoxx 600 fell by 2.5%, its first monthly decline in six months. The Nikkei rose by 0.7% over the month, but recorded its first quarterly decline since early 2025. Finally, the MSCI Emerging slightly declined (-0.8%), penalized notably by the Korean and Chinese markets. A detail? Meta released its agent, Muse, which led 500,000 Americans to open their digital lives to an agent that financially "optimizes" their lives. Meta benefits, subscription businesses less so, and the question of future competition arises, unless the answer can also come from companies able to adjust their prices more finely to the consumer.

The MSCI EMU dropped nearly 2%, penalized by all sectors except energy and technology. In this environment, CPR Invest Climate Action Euro fell less than its benchmark index, thanks to lower exposure to consumer stocks, good selection of financial stocks (including Eurobank, which benefits from Greece's return to developed country status), and significant exposure to stocks linked to the semiconductor cycle such as ASML and ASMi. On the other hand, exposure to communication services stocks such as Publicis or Deutsche Telekom penalized performance, both relatively and absolutely.

During the month, we sold Engie, Air Liquide, and CSG, to strengthen Nexans, Siemens Energy, Thalès, and Veolia, given attractive valuations and growth prospects that we believe are not fully priced in by the market.

Climate Week NYC confirmed that the energy transition remains a major allocation theme for investors. Announcements mainly focused on accelerating renewables, strengthening power grids, developing storage, and mobilizing private financing toward low-carbon infrastructure. Beyond the headline announcements, the underlying message is clear: regulatory visibility and pressure on fossil fuels continue to support assets linked to electrification, energy efficiency, and industrial decarbonization. For a climate fund like ours, this reinforces the relevance of selective exposure to the value chains of the transition, favoring models capable of capturing sustainable growth with reasonable valuation.