European value equities
DNCA Invest Value Europe
Value
- Life insurance
- PEA
Key points
A selection of mainly European stocks with a value bias.
- A portfolio comprised of undervalued European stocks that, according to the management team, offer significant appreciation potential.
- An experienced, international management team.
- A disciplined investment process with financial and non-financial analysis of issuers.
Managers comments · September 2026
3 minutes
September brought an end to five consecutive months of gains in European equity markets. The STOXX Europe 600 Net Return fell by -2.42%, amid a climate marked by a renewed escalation of tensions in the Middle East, rising energy prices, and a sharp tightening of financial conditions.
Ongoing disruptions around the Strait of Hormuz and Bab el-Mandeb fueled concerns about energy supplies. As a result, Brent crude rose 6.5% over the month to $98 per barrel. This energy shock, combined with economic activity that remained resilient, reignited inflation concerns and led to a rise in bond yields. The U.S. 10-year yield reached 5.23%, its highest level since 2007.
In Europe, the ECB raised its deposit rate by 25 basis points to 2.50%. While economic activity remained strong, with the eurozone composite PMI at 53.1 in September, the markets punished assets most sensitive to rising interest rates. Fiscal and political concerns were particularly acute in France: the spread between French and German 10-year yields exceeded 120 basis points during the month. As a result, the CAC 40 fell 4.4%, significantly more than the broader European market.
By sector, energy (+2.8%) and technology (+2.0%) were the only European sectors to end the month in positive territory. Energy benefited from rising oil prices, while technology continued to be driven by investments in infrastructure related to artificial intelligence and semiconductors. Conversely, the automotive sector (−8.1%), financial services (−7.1%), real estate (−7.2%), and consumer-related sectors were weighed down by rising interest rates, fears of a slowdown in demand, and increased risk aversion.
The fund posted a return of -3.07% over the period, compared with -2.42% for its benchmark, the STOXX Europe 600 Net Return.
The main drag on performance was Compagnie de Saint-Gobain (−24 bps), CRH (−22 bps), and Edenred (−21 bps). Stocks exposed to the construction sector suffered from rising interest rates, which weighed on cyclical and financing-sensitive sectors. Edenred corrected after a strong rebound in its share price in previous months.
Conversely, the top contributors were Shell (+11 bps), ABN Amro (+9 bps), and Infineon (+9 bps). Shell benefited from rising oil prices, while Infineon capitalized on the resurgence of the generative artificial intelligence theme and expectations of increased demand for semiconductors.
During the month, we sold our position in Ayvens. This decision is part of our strategy to reduce the portfolio's exposure to French risk, against a backdrop of rising sovereign risk premiums and increased volatility in French assets.
NAV
As of 27/10/2026
Risk Indicator
Synthetic risk indicator according to PRIIPS. 1 corresponds to the lowest level and 7 to the highest level.
Risks
- Equity risk
- Risk related to exchange rate
- Risk of capital loss
- Risk relating to investments in derivative products
- Sustainability risk
- ESG risk
Performance and volatility
As of 27/10/2026
Past performance is not an indicator of future performance. Management fees are included in performance. The performances are calculated net of any fees by DNCA FINANCE. This is not a capital guarantee fund.
Breakdown by country
As of 30/09/2026
Performance
As of 27/10/2026
- New investment strategy and investment objective
Past performance is not an indicator of future performance. Management fees are included in performance. The performances are calculated net of any fees by DNCA FINANCE. This is not a capital guarantee fund.
Portfolio Managers
Isaac Chebar
European equity portfolio manager
Isaac Chebar holds a chemical engineering degree from the Polytechnic school of the University of Sao Paolo in Brazil.
He began his career at Société Générale managing emerging market funds and funds investing in Southern Europe. In 2000, Isaac joined Tocqueville Finance where he set up and managed Tocqueville Value Europe until 2002. He then joined Aviva asset management as head of European investments managing several discretionary funds.
He joined the DNCA Finance management team in 2007.
Footnotes
* The inception date of the Fund is 26/06/2008.
Legal information
The above information is not a confirmation of any transaction and does not comprise investment advice. Past performances are not a reliable indicator of future performances. Management fees are included in performances. Access to products and services presented may be restricted regarding certain persons or countries. Tax treatment depends on the individual situation of each investor. For full information regarding strategies and fees, please refer to the prospectus, Key Information Document and other regulatory information available on this website or free of charge on demand from the investment management company’s registered offices.
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Information on the fees, commissions or non-monetary benefits : DNCA Finance would like to inform its clients (existing or potential) that within the context of its fund management business, DNCA Finance may receive from or pay to third parties (e.g. introducing brokers, distributors, brokers, asset managers) certain commissions, fees or non-monetary benefits in connection with the provision of investment or ancillary services. Upon request, DNCA Finance may communicate to its clients any additional information relating to these remunerations, commissions or non-monetary benefits.
The Sub-Fund promotes environmental and/or social characteristics within the meaning of Article 8 of SFDR.
Sustainability risk means an environmental, social, or governance event or condition that, if it occurs, could potentially or actually cause a material negative impact on the value of a Sub-Fund’s investment. Sustainability risks can either represent a risk of their own or have an impact on other risks and may contribute significantly to risks, such as market risks, operational risks, liquidity risks or counterparty risks. Sustainability risks may have an impact on long-term risk adjusted returns for investors. Assessment of sustainability risks is complex and may be based on environmental, social, or governance data which is difficult to obtain and incomplete, estimated, out of date or otherwise materially inaccurate. Even when identified, there can be no guarantee that these data will be correctly assessed.
Consequent impacts to the occurrence of sustainability risk can be many and varied according to a specific risk, region or asset class. Generally, when sustainability risk occurs for an asset, there will be a negative impact and potentially a total loss of its value and therefore an impact on the net asset value of the concerned Sub-Fund.
The reference benchmark does not intend to be consistent with the environmental or social characteristics promoted by the Sub-Fund.