Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 209.50 €

18/06/2013

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

May 2013

European equity markets continued to climb in May. Industrials and financials made some of the biggest improvements, while "defensive" names noticeably retreated. This is because investors have begun switching to stocks that are sensitive to any signs of economic recovery and that are currently cheap. Industrial companies we met with have noticed tangible signs of improvement since April. Conversely, stocks in businesses offering high visibility are being penalised by the rise in interest rates. This is particularly true for the food and beverage sector, also saddled with a very high valuation, which turned in the worst performance in May.
This return to undervalued stocks was highly beneficial to the fund's performance which outperformed its benchmark index. Portfolio management decisions: we closed out our position in Michelin because its catalyst is too far away. We raised our exposure to Italian banks by increasing the weight of our Intesa position and adding Banca Popolare Emilia Romagna, which boasts a solid balance sheet and a low valuation at 50% of its book value. Finally, we started a position in Irish paper-based packaging producer Smurfit Kappa, whose successful restructuring programme has not yet be priced in by the market.

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 following 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 ?