We are very pleased to inform you that Watanabe & Brothers’ Investment announced 2022 Q1 financial results on July 4, 2022.
In 2022 Q1, our fund suffered from a loss of 19% with respect to 2021 Q1. We believe that it was due to rising industrial prices as well as rising interest rates in the U.S. and European markets. At the same time, our fund recorded negative average earning yield of -8% in 2022 Q1.
In this regard, we purchased TSLA, SQ, TDOC, NVTA while selling parts of holding shares of GOOGL, AAPL, V and MA in 2022 Q1. As you may be aware, these stocks we have purchased are recording negative earning yields and stocks we have sold are recording positive earning yields. These actions reflect our strategies of selling the lower PER stocks while purchasing the higher PER stocks in the higher volatility markets. At the same time, we purchased MSFT and ADS.DE considering their reasonable prices and the superior financial outlooks.
As announced previously, we conducted the donation to the Ukrainian Government in 2022 Q1. We believe that investment activities based on the philosophy of the ESG investment would be beneficial from medium- or long- term perspectives. We continuously evaluate the 10 investee companies from financial aspects as well as from the view points of ESG investment using the indicators issued by MSCI.