Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 238.18 €

15/09/2014

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, Cédric Hereng, Isabel Levy, Markus Maus, Fredrik Berenholt, Corinne Baudoin.

Management comments

August 2014

The prospect of an upcoming ECB intervention, motivated by flagging euro zone economic indicators, drove European equities to a positive performance in August.

For instance, inflation was low and leading indicators such as the PMI were down slightly, though still in expansion territory. Italy's GDP contracted further and Germany posted a 0.2% quarter on quarter dip in GDP. Economic activity was especially disrupted by geopolitical tensions. Deflation worries monopolised the attention of the markets. There was little corporate newsflow this month. That said, Italian banks published reassuring results. Unicredit beat the analyst consensus with positive net income of €400 million and a Core Tier 1 ratio up 90 basis points to 10.4%. Similarly, Banco Popolare and BPER delivered positive net earnings and improved capital ratios despite the low point in the economic cycle. M&A activity dominated newsflow in the telecom sector. US operator Sprint dropped the takeover of T-Mobile US, a subsidiary of Deutsche Telekom, for regulatory reasons. Telefonica and Vivendi are considering merging their operations in Brazil.

Against this backdrop, the fund underperformed its benchmark in August.

The main negative contributors to performance included Deutsche Telekom, which lost almost 6%, as well as Atos and Capgemini, both of which delivered a flat performance in August. From a more general standpoint, the fund did not benefit from the rise in stocks sought-after for their visibility such as Swisscom, Novartis and Nestlé, which are not in the portfolio due to their high valuation. Overall, we did not change the portfolio's structure

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.

Disclaimer

What kind of user are you ?