Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 239.08 €

25/08/2016

Morningstar : 3/5

Value Blended Growth
Large caps Yes No No
Mid caps Yes No No
Small caps Yes No No

Main investment cases for underpriced European stocks (25 lines max.)

Fund management

The European fund management team

The fund management team: Ingrid Trawinski, Yann Giordmaina, , Thibault Moureu, Isabel Levy, Markus Maus, Fredrik Berenholt, Jérémy Gaudichon, Cédric Hereng.

Management comments

July 2016

The European equities market regained over 3% in July, virtually returning to pre-Brexit levels. Q2 earnings season is well under way, with most companies indicating at this point that they have not seen a significant decline in business post-Brexit. Most companies have also reiterated their targets for 2016, while some (e.g. portfolio holdings Atos, Capgemini, Telecom Italia and Technip) have even raised them.

On the whole, corporate earnings have suprised on the upside, allowing investors to refocus on company fundamentals. Sectorwise, technology, cyclicals and financials made a strong comeback this month, though without completely making up the losses stemming from the announcement of the Leave vote. Still, this rebound gave a boost to fund performance. Intesa Sanpaolo was the top contributor to performance this month. Moreover, the EBA/ECB bank stress test results confirmed the strength of most European banks amid highly adverse scenario. Tech groups Atos and Capgemini, and luxury goods manufacturers LVMH and Kering, all representing substantial portfolio positions, recorded very solid results. UK staffing company Hays had a very rough time last month, falling to near-2009 valuation levels, but July saw it post a major comeback.

Portfolio management decisions: we took profits on BP and Royal Dutch Shell in the first half of the month, on the heels of their impressive showing in June, and enhanced our position in Total. We also built up our BMW position early on in July and took profits on CRH. Finally, in the first few days of July, we closed our position in small Italian bank BPER, and shored up our investment in Intesa Sanpaolo, still trading at a big undervaluation but with a more comfortable capital position.

Subscriptions / redemptions

Requests will be centralised with SGSS on a daily basis up to 12 p.m. and processed on the basis of the next net asset value which will be calculated based on the closing prices on the same day. in other words. at unknown price. All related settlements will be made two trading days after following the NAV calculation / unit (D+2). SGSS : Tel.: +33 (0)2 51 85 57 09. Fax: +33 (0)2 51 85 58 71. Please ensure that your financial intermediary gives your company’s name and your BIC/ BIC1 code to SGSS.

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