In September, global stock markets were once again at the mercy of central banks and interest rates. The Fed chair’s message of “higher for longer” couldn’t be clearer. Higher long-term interest rates over the past three months have contributed to a decline in equity markets, especially for growth stocks which are the most sensitive to rate hikes. For example, value stocks outperformed growth stocks by more than 4% in September and by 10% in Q3! It was in this context that the Amplegest Pricing Power fund had a monthly performance of –5.12%, compared with –3.08% for the benchmark index.

The positive notes were rare in such a volatile market. Hannover Re fulfilled its roles of diversification in the reinsurance sector. Trends in premiums remain favourable, while the demand for natural disaster insurance is expected to continue. Wolters Kluwer and Linde have benefitted from their status as defensive stocks and their USD exposure. At the other end of the spectrum, consumer discretionary continues to decline. We think that the rebound of Chinese spending has not fully compensated for the normalisation of American consumer spending. Ahead of quarterly earnings announcements, shares in luxury (Moncler, LVMH, Kering) and spirits (Pernod Ricard, Campari, Heineken) have significantly underperformed. Nonetheless the fund is holding its positions in these sectors, whose pricing power and long-term growth outlooks remain unchanged.

Recent portfolio changes include BMW, which we sold because of the tense geopolitical situation between European and Chinese authorities in the automotive sector. We opened two positions in Belgian shares. ELIA operates the electricity transport grid and is a key partner with the national regulator for the deployment of renewable energy in Belgium. UCB is a specialised biopharma company. Its treatment for psoriasis is a major innovation which could double in size over the next three years.