METROPOLE Sélection W
ISIN Code FR0011468602
NAV 319.32 €
Documents to be downloaded
Main Value Responsible investment cases for European stocks
The fund management team: Ingrid TRAWINSKI, Jérémy GAUDICHON, Fredrik BERENHOLT, Isabel LEVY, Thibault MOUREU, Markus MAUS, Cédric HERENG.
A resurgence of the pandemic and the identification of a new variant triggered a sharp fall on European equity markets in November, accentuated by significant sector rotation. News of the latest pandemic surge drowned out the highly positive signals coming from the economic sector: PMI-type leading indicators made progress, indicating a rate of economic growth outstripping that of Europe’s previous cycle. The vast majority of companies have recovered or even surpassed pre-pandemic levels of activity. Better still, they have succeeded in maintaining margins despite inflation in production costs and are sending out optimistic outlook messages given the strength of demand.
Adversely affected by rising risk aversion, the sub-fund underperformed its benchmark over the month. Sector rotation away from cyclical stocks and those dependent on economies re-opening proved the biggest negative contributor to performance in November. The portfolio is made up of high-quality stocks with strong upside potential as against their intrinsic industrial value. These are companies that have demonstrated their ability to weather severe restrictions imposed by the pandemic and are capable of absorbing rising costs or even benefiting from a sustained inflationary environment.
On the ESG front, we had discussions this month with Stora Enso after the group raised its CO2 emissions reduction targets at the end of October. The Finnish group, which produces wood based materials and packaging for consumer products and also owns extensive forest assets, is aiming for a net climate positive footprint by 2050. This will be achieved via a 50% reduction in CO2 emissions by 2030 across scopes 1, 2 and 3. These SBTi-approved targets attest to the major role Stora Enso can play given the nature of its business. Another story to make the news was Continental AG’s termination of its CFO, also in charge of compliance. The Group’s Supervisory Board cited shortcomings in providing information to the investigation already under way into the supply of illegal defeat devices that enabled Volkswagen Europe to understate the emissions produced by its diesel engines. The METROPOLE Sélection sub-fund’s ESG rating remained unchanged at AAA-.
Subscriptions / redemptions
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