As every month, you can read our investment report, in which we offer you a macroeconomic analysis of the market, a presentation of the performance of our funds and their results.
You can also watch our video update on the Digital Funds range.
The year 2025 started brightly for equity indices, particularly in Europe (MSCI Europe NR +6.5%, MSCI USA NR +3.0% in January). December’s decline was quickly forgotten, and new records were set in January by the major US and European indices. European indices have appreciated to valuation levels close to historical average. The 12-month forward P/E of the MSCI Europe index now stands at 14.1x, which is the average historical valuation level seen since 2000, the first time this happens since 3 years ago and the invasion of Ukraine. This is nothing excessive in a context characterised as pro-cyclical by our Economic Momentum and Monetary Accommodation indicators, especially as many segments of the stock market are still undervalued by historical standards.
Digital Stars Europe Acc posted a +4.5% increase in January, vs. +6.5% for the MSCI Europe NR.
The fund’s sector positioning proved to be well oriented over the month. However, the fund’s all-cap allocation, which is currently overweight small and mid caps, weighed negatively in relative terms, as even though small and mid caps rose by almost +4% over the month, they still lagged the large-cap segment. The portfolio reviews carried out in January were diversified, mainly increasing our positions in the consumer discretionary and communication services sectors. Among the exits were mainly companies from the IT and materials sectors. Digital Stars Europe is significantly overweight finance (financial services) and industry, and underweight healthcare, consumer staples and IT. The weight of consumer discretionary is aligned to the benchmark. The UK remains the fund’s top weight at 27.8%, ahead of Italy (biggest overweight) at 15.5% and Switzerland at 10.0%. With a 4.7% weight, France remains the largest country underweight.
Digital Stars Continental Europe Acc ended January at +5.3%, vs. +7.0% for the MSCI Europe ex UK NR.
The fund’s cyclical allocation held up well over the month. However, the fund’s all-cap allocation, which is currently overweight small and mid caps, weighed in relative terms, as even though small and mid caps rose by almost +5% over the month, they still lagged the large-cap segment. The portfolio reviews carried out in January were diversified, mainly increasing positions in consumer discretionary and healthcare. Among the exits were mainly stocks in the materials sector. Digital Stars Continental Europe is overweight in finance, real estate and industry, and underweight in IT, consumer staples and healthcare. Italy (first overweight) is still the fund’s top weight at 19.6%, ahead of Switzerland at 13.4% and Sweden progressing at 12.4%. With a 7.7% weight, France remains the largest country underweight.
Digital Stars Eurozone Acc achieved +4.1% in January, vs. +7.3% for the MSCI EMU NR.
The fund’s cyclical overweight proved favourable over the month. However, the fund’s all-cap allocation, which currently overweighs small and mid caps, weighed in relative terms, as even though Eurozone small and mid caps gained nearly +4.5% over the month, they still lagged the large-cap segment. The portfolio reviews carried out in January wer diversified, increasing positions in the consumer discretionary sector. Among the outflows were mainly financial and technology stocks. The finance sector remains the fund’s main overweight, ahead of consumer discretionary and healthcare. The fund is underweight in materials, industrials and energy. Italy remains the largest weighting at 22.1%, followed by Germany at 20.7% and France at 19.0%. Italy remains the most overweight country, and France the most underweight.
Digital Stars Europe Smaller Companies Acc ended January at +2.6%, vs. +4.0% for the MSCI Europe Small Cap NR.
The fund was impacted in relative terms by the underperformance of healthcare (M1 Kliniken, Xvivo Perfusion) and industrial (Eurocell, Hexagon Composites) stocks. Portfolio reviews in January were marked by increased positions in Consumer Discretionary and Industrials. Among the outflows were mainly financials, real estate and technology stocks. The portfolio is now mainly overweight in finance, healthcare and consumer staples, and underweight in real estate, technology and commodities. The UK remains the portfolio’s largest weighting at 28.7%, ahead of Italy at 12.7% and Sweden at 12.6%.
Digital Stars US Equities Acc USD ended January up +4.0%, outperforming the MSCI USA NR at +3.0% and the MSCI USA Small Cap NR at +3.6%.
On the US market, January was slightly more favorable for small caps. The fund’s all-cap positioning enabled it to benefit from this effect. The good positioning of the fund, underweight technology and overweight financials and industrials, also contributed to the fund’s good performance. Finally, our positions in technology companies (AudioEye, AppLovin, DocuSign, etc.) also contributed strongly to the fund’s outperformance. The rebalancing carried out in January was fairly diversified, with the integration of technology and consumer discretionary stocks, and the exit of financials. The fund is heavily overweight in financials and industrials. The most underweight sectors remain media and technology.
