Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 231.43 €

26/07/2016

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

June 2016

The fund underperformed its benchmark index by over 500 bp in June, due in large part to the rapid rise in risk aversion in the very particular conditions leading up to the Brexit referendum.

From a sector standpoint, the fund was hurt by the decline in cyclicals, and especially temporary employment companies such as Randstad and Hays, and by its under-exposure to non-cyclical consumer goods, which posted a positive performance despite excessive valuation levels.

Country risk was the biggest offender, however: UK stocks (Lloyds, Hays, Marks & Spencer, BT Group) and Italian names (Intesa Sanpaolo, Unicredit, Banca Popolare dell’Emilia Romagna and Telecom Italia) suffered the biggest losses.

Risk aversion and political speculation are likely to continue driving volatility on the markets in the coming months. In this uncertain environment, we are continuing to strictly apply our investment process, which consists in picking undervalued stocks in a bid to capture the opportunities that are sure to arise.

Accordingly, we set up new investment lines in two undervalued stocks: Technip and Sanofi. We took profits on Atos and Capgemini at the start of the period. Finally, we closed our position in Relx once it reached our valuation target, and in Rexel, as the expected turnaround in profit margin has been postponed.

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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