METROPOLE Sélection P
ISIN Code FR0010988758
NAV 223.54 €
Morningstar : 3/5
Documents to be downloaded
Main investment cases for underpriced European stocks (25 lines max.)
The fund management team: Ingrid Trawinski, Yann Giordmaina, , Thibault Moureu, Isabel Levy, Markus Maus, Fredrik Berenholt, Jérémy Gaudichon, Cédric Hereng.
During May, European equity markets continued to rally. The latest Q1 corporate earnings were broadly in line with consensus forecasts. Performances were nonetheless highly mixed amid hefty sector rotation. Commodities stocks, particularly mining companies, fell heavily once again after China released disappointing macroeconomic indicators. On the other hand, the pharmaceutical sector, which had fallen sharply during the first quarter, posted some of the strongest gains on the month. More generally, equity markets were driven primarily by currency fluctuations, coupled with anticipations in monetary policy changes and commodities price trends.
Against this backdrop, the fund underperformed its benchmark index in May. The fund’s performance was weighed down mainly by weakness in Banco Popular Espanol, Unicredit and Marks & Spencer. Banco Popular Espanol announced a massive rights issue in order to streamline its balance sheet, which will help restore profitability to normal levels more rapidly. The resignation of the Unicredit CEO fuelled speculation of a forthcoming capital increase. Meanwhile, Marks & Spencer will take longer than expected to redress its margins, as cost savings will be partially offset by lower pricing implemented to stem losses in market-share.
This month we reduced the portfolio’s weightings in Telecom Italia, Unicredit, CRH, Atos, Capgemini and Smurfit Kappa. We strengthened our Intesa Sanpaolo holding and initiated positions in Total and BMW which are trading at a discount.
Subscriptions / redemptions
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