Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 235.01 €

28/07/2014

Morningstar : 4/5

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

Management comments

June 2014

The European equity markets dipped slightly in June. There was little newsflow pertaining to European companies this month. There was, however, a wide variation in performances both in terms of sectors and individual stocks.  Cyclicals, industrials and financials fell sharply, while high-dividend stocks and/or sectors that had significantly underperformed until April (oil, pharmaceuticals, utilities and real estate) continued to climb overall.

The fund underperformed its benchmark index in June. It is not exposed to companies belonging to the oil, utilities, real estate or agribusiness sectors due to their excessively high valuation. Furthermore, the steep drop in peripheral financial companies (Intesa Sanpaolo, Banco Espirito Santo, Banco Popolare, Banca Popolare dell’Emilia Romagna, Banco Popular), which make up a substantial percentage of the fund's holdings, also largely contributed to its underperformance. Among these bank positions, only Banco Espirito Santo was the focus of a specific news event. As concerns returned to the forefront over the financial situation of the holding company, ESI, whose restructuring plan is expected to be presented in the coming days, Banco Espirito Santo once again had to stress its lack of direct exposure to the holding company and reiterate its exposure to the different entities of the Espirito Santo Group. Against this backdrop, we did not alter our position.

However, we did reduce the weight of ABB given the weaker prospect of the catalyst taking place: ABB is faced with operational problems undermining its ability to improve profitability in the coming quarters.

 

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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