"Let's take a close look at the Beijer Ref title"

Today, we see many opportunities in the industrials sector, a sector that is often not associated with growth stocks, but linked to cyclical trends. Our analysis suggests that it is precisely in industrials, a sector in the Msci Europe Growth Index, that the largest number of companies with profitability and earnings growth above the median of the European growth market are concentrated. There is, however, a distinction to be made between a 'growth' industrialist and an industrialist who is, in reality, mainly exposed to the cycle. Companies that lead industrial niches with little competition tend to express more regular growth, because they can rely on robust market shares and hard-to-replicate competitive advantages, often underlying real pricing power.

In volatile environments, investors' attention can easily be captured by short-term noise and geopolitical dynamics. We focus on fundamentals with consistency and discipline.

We believe there are structural dynamics that give more support to Europe than to the US. After 15 years of flows into US equities, which resulted in an underweight of Europe in the major global indices, investors are now turning their attention back to certain areas of the Old Continent market. Europe, for its part, is home to a number of interesting companies, including in the tech branch, with strong global business models and leading positions in their respective fields.

An interesting company is the Dutch Asml, a leader in the semiconductor business with a significant competitive advantage in Euv technology (extreme ultraviolet lithography): this, together with control over the supply chain, provides the company with a solid basis for long-term growth. Another example to watch out for is Beijer Ref, active in the distribution of Hvac solutions (heating, ventilation and air-conditioning systems), which has a significant share of recurring revenues linked to maintenance and spare parts, a dynamic that provides greater visibility on growth and reduces exposure to economic cycles. It also benefits from structural trends, such as energy efficiency and the transition to more sustainable refrigeration systems, which supports demand. Finally, we look favourably on London-based 3i: its main holding, the discount chain Action, has, in our view, a broad growth path in the markets it already serves, while maintaining high levels of profitability.