Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 253.54 €

22/04/2014

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

March 2014

The European stock markets were largely influenced in March by geopolitical tensions in Ukraine and by the increasing signs of an economic slowdown in China.
The main event involving companies in our portfolio had to do with Italian banks. As evidenced by their annual earnings releases, Intesa Sanpaolo, Unicredit and BPER recorded massive provisions to extensively "clean up" their balance sheets, which is a good thing. Intesa Sanpaolo and Unicredit also unveiled their new strategic plans, along with financial targets significantly exceeding analyst estimates. Intesa Sanpaolo targets a net income of €4.5 billion in 2016, i.e. a return on equity of 12% versus 10% for the consensus. Italian banks also generated the strongest performances in March.
Kingfisher and Adecco's results were also higher than expected, thanks in large part to the turnaround in activity in Europe. On the downside, the fund's performance was hurt by declines in Smurfit Kappa, Randstad, Lloyd’s and Marks & Spencer.
Against this backdrop, we made several changes to the portfolio. We sold Mapfre due to its lack of revaluation potential in the wake of its sharp rise. We also sold Vesuvius owing to its weak catalyst. We started new positions in three significantly undervalued names: Saint-Gobain, LVMH and Swiss industrial conglomerate Oerlikon.

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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