METROPOLE Sélection P
ISIN Code FR0010988758
NAV 253.54 €
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.
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
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