CPR Invest - European Strategic Autonomy - R EUR - Acc ISIN : LU2570611165

In July, the fund posted a performance of -0.29% compared to -0.52% for the MSCI EMU Net Total Return index. Year-to-date, the fund is up 12.85% versus 11.93% for its benchmark index.
 
The renewed tensions concerning the Strait of Hormuz, coupled with the resumption of strikes in the Middle East, once again fueled inflation expectations through rising oil prices. The end of the month was calmer with the cessation of bombings and the resumption of negotiations. Nevertheless, the situation is still not stabilized. In the conflict between Russia and Ukraine, the intensification of Ukrainian attacks on Russian oil facilities inland and ballistic strikes on Kyiv do not suggest a short-term easing.
We also witnessed a sharp decline in technology and industrial stocks related to the AI theme, following a spectacular rally in recent months, as evidenced by the drops in Prysmian, Legrand, Infineon, and ASM International, of -17.70%, -11.04%, -24.49%, and -19.92% respectively. Conversely, the defense sector regained momentum, fueled by contract announcements and, overall, solid earnings releases. Thus, CSG rose by 29.33%, Rheinmetall by 15.09%, and Renk by 13.46%.
The biggest detractor was our underweight in energy, which benefited from tensions in the Middle East, as well as financial stocks, which rebounded, helped by reassuring earnings releases and prospects for continued significant returns to shareholders through dividends and share buybacks.
 
Regarding movements, we increased our exposure to stocks related to electrification, notably ASML, Siemens Energy, and Infineon, at the end of the month, after the sharp correction in these stocks and our reductions in June. Furthermore, we also increased some cyclical stocks during the month, such as Saint-Gobain, Wienerberger in construction, and Renault and OPMobility in the automotive sector.