Update on... Tocqueville Value Euro ISR | December 2025
Yann Giordmaina, Head of Value, La Financière de l’Échiquier (LFDE)
Tocqueville Value Euro ISR has performed well to date in 2025, continuing the fund’s positive trend of the last five years¹. Having benefited from a succession of market themes – such as the enthusiasm for GLP-1 drugs in the pharmaceutical sector, the impact of tariffs or the rise of AI – the momentum factor has lost some of its strength. European stock markets are now moving more erratically, making stock picking more important.
PORTFOLIO ACTIVITY
Tactical operations
Although the year was heavily impacted by the US administration’s 2 April 2025 announcement on tariffs (Liberation Day), the fund performed well during the market downturn while keeping pace with the sharp rebound that followed. We actively managed the fund by adding 12 stocks and removing 12 others, representing 35% of total assets in the portfolio. The removals were motivated mainly by target prices being reached (Danone and Smurfit Westrock), as well as by the weakening of drivers (Vonovia, Vinci and Amundi). The additions enabled us to adjust our positions on banking stocks, with Erste Group replacing Banco BPM. Finally, stocks from the business services sector (Publicis) add a complementary dimension to the portfolio.
Fundamentals
By definition, the Tocqueville Value Euro ISR investment process focuses on analysing valuation multiples. The portfolio is constructed with the aim of reconciling our interpretation of market conditions with the universe of stocks considered to be undervalued, based on the work of the entire LFDE Value team. For nearly two years, we have focused on the concept of the productive economy, favouring tangible assets and avoiding consumer goods. We are now adapting and adding to our stock selection based on the principle of shareholder returns, regardless of the sectors in which the stocks operate. This applies to industrial, service and financial companies. Looking ahead to 2026, the Value team will pay particular attention to the clarity and visibility of the capital allocation of the stocks in the portfolio.
INVESTMENT STRATEGY
Value investing is often considered a temporary strategy aimed at taking advantage of a window of opportunity opened by expectations of falling or rising interest rates, or pro- or counter-cyclical fiscal stimulus. We take a different view, believing that value strategies are based on a contrarian reading of the market aimed at seeking out discounts wherever they may be found, without any preconceived notions about specific sectors. The objective of our fund is therefore to be able to navigate economic uncertainties and adapt to any type of market environment.
These data and opinions, as well as the securities and sectors mentioned, are provided for informational purposes only and do not constitute an offer to buy or sell a security, investment advice or financial analysis. Neither their presence in the portfolio nor their performance are guaranteed. Past performance is not an indication of future performance. The fund is exposed mainly to the risk of capital loss, equity risk and currency risk.
Investors are reminded that the units of the fund presented may not be marketed in their country of residence. For more information on its characteristics, risks, and costs, and before investing, please read the regulatory documents available on www.lfde.com.
Investment decisions should not be based solely on a fund’s non-financial approach, but should also take into account other characteristics, including its risks, as described in its prospectus.