Métropole Gestion

METROPOLE Sélection P

ISIN Code FR0010988758

NAV 221.53 €

21/10/2014

Morningstar : 3/5

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

September 2014

European equities generated a slight gain in September. The market trend was significantly influenced by geopolitical events and monetary policy decisions on both sides of the Atlantic. The ECB in particular cut its target rates and began injecting cash into the economy.

There was no major newsflow from companies held in portfolio, with the exception of Erste Bank. The bank-averse Hungarian government instigated a new law that will rack up bank losses in the country. Hungary, which accounts for just 4% of the bank's outstanding loans, nevertheless represents a substantial country risk. New provisions and a hefty capital increase may be on the horizon. As a result, we decided to sell our entire position in the name.

With macroeconomic figures showing no signs of an improvement in the euro zone, stocks sensitive to interest rate declines posted the strongest performances. Pharmaceuticals and Utilities, two sectors with little to no representation in the fund, generated gains of 6.1% and 2.4%, respectively. Meanwhile cyclicals, many of which often have very low valuations and are thus significantly represented in the portfolio, underperformed this month. The construction sector fared the worst at -4.1%.

Against this backdrop, the fund underperformed its benchmark in September.

Despite the sharp rebound by names like Kingfisher, Intesa Sanpaolo, Capgemini and Deutsche Telekom, all of which gained over 5%, the fund's performance was hurt by the drops posted by Michelin (-11.2%), Hays (-11.3%), GKN (-7.4%) and Saint-Gobain (-6.2%).

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.

Disclaimer

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