METROPOLE Sélection P
ISIN Code FR0010988758
NAV 232.33 €
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, Cédric Hereng, Isabel Levy, Markus Maus, Fredrik Berenholt, Corinne Baudoin.
European equity markets were hit with excessive volatility in October. Waves of panic sent the markets plummeting by nearly 10% at the top of the month. In the wake of a substantial rebound, the Stoxx Europe Large (dividends reinvested) ended the month down 1.96%.
Key events in October included the outcome of the AQR and the stress test conducted by the ECB, which had little impact. None of the banks in our portfolio will have to strengthen their capital as a result of these exercises. In other news, the markets had read the weakening in macroeconomic indicators published in October to mean that economic activity would fall again in Europe. These fears were proved unfounded by the third quarter results releases, which on average turned out better than expected and showed no signs of a downturn in activity at this point. For example, Randstad published revenue growth of 4.2% combined with an additional improvement in profitability. In manufacturing, ABB recorded a 28% increase in orders, of which +40% from Europe.
Against this backdrop, the fund underperformed its benchmark index this month. The fund's performance was notably undermined by the decline in Capgemini, which has not yet published its earnings but suffered from IBM's poor results. Unicredit also saw its share price fall significantly (-8%) despite passing the ECB test without a hitch. We made no changes to the portfolio's structure in October. We did increase our exposure to Kering and reduced our position in Kingfisher, however. We also tendered all our Telekom Austria shares to the takeover bid initiated by Mexican investor Carlos Slim.
Subscriptions / redemptions
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