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European Value Fund is now back to positive performance territory over 1 year despite the dramatic unfolding of a major geopolitical event at our doorsteps. The energy crisis has been the main driver of the relative performance of European stocks against their US counterparts. As the market started to price in the falling gas prices due to the milder winter, European stocks outperformed their US peers. The higher weight of US stocks towards tech stocks that are more sensitive towards rising interest rates also played a role. After an exceptional start into 2023 for European stocks, now will come the verdict in terms of earnings, future gas prices and BCE’s fight against inflation. We stay selective and continue to focus on companies with undervalued earning power.