March 2026: Uncertainty in the Middle East is putting pressure on the stock markets
The war in the Middle East is causing considerable tension on global stock exchanges. In particular, the rapid rise in oil and gas prices is causing fear among investors. If these higher energy prices are passed on to consumers, it could lead to a rise in inflation. In the long term, this could prompt central banks to raise interest rates. This is negative for stock markets, and consequently, on average, stock prices on European exchanges fell by 7.7% over the past month. The Sustainable Dividends Value Fund also had a difficult month, with the share price standing 5.7% lower at the end of March. This price decline is almost entirely due to market sentiment, and there is little negative corporate news to report regarding the shares in our fund. Virtually all of our companies have reported strong earnings figures for 2025 in recent months. The announced dividend payments to shareholders are, on average, 18% higher than in the previous year. This is not only a good reflection of profit development over the past year, but it also demonstrates the confidence of these companies’ management in further corporate growth in the current year. The investors in our fund have achieved an average return of 6.8% per year since the start in 2016 until now.
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The fund
Sustainable Dividends offers an investment fund that invests in a well-diversified portfolio of European companies at the forefront of the sustainability transition. Our focus is on a disciplined investment process, while applying both qualitative and quantitative financial criteria.