METROPOLE Euro SRI W
ISIN Code FR0013185055
NAV 199.36 €
Documents to be downloaded
Main investment cases for undervalued SRI Euro zone stocks
The fund management team: Ingrid TRAWINSKI, Jérémy GAUDICHON, Fredrik BERENHOLT, Isabel LEVY, Thibault MOUREU, Markus MAUS, Cédric HERENG.
Eurozone equity markets continued to bounce back in June, driven by the reopening of the economies. Similar to the leading economic indicators, messages from companies confirm the gradual recovery of business levels. Investor optimism therefore prevailed over uncertainties relating to the pace of the recovery, as well as the surge in the number of contaminations in various regions of the world towards month end. The sector rotation initiated at the end of May continued in June, generating superior performance of the Value style over the Growth style. Accordingly, the sectors posting the highest performance during the month are Technology, Communications and Financials, while the lower performing sectors include Energy, Cyclical Consumer Goods and Consumer Staples.
The subfund outperformed its benchmark during the month, due in its entirety to the positive stock selection effect. Among the highest contributors to the positive performance are Axa, Publicis and Atos. Conversely, Sodexo, Accor and Continental had a negative performance effect.
Whereas we could fear the current crisis would dampen ambitions regarding energy transition, at least momentarily, we are pleased to observe nothing of the sort. In the month of June alone, BP and Royal Dutch Shell recognised asset impairment of $15bn and $18bn respectively. These impairments mainly concern assets the companies no longer intend to develop, demonstrating their transformation and commitment to energy transition, despite certain criticisms (see our SRI letter "Energy transition and the new economic cycle"). Similarly, we held discussions with ArcelorMittal on the measures that will enable it to reach its CO2 emissions reduction target of 30% in Europe by 2030 and carbon neutrality by 2050. The company's goal is that all production will obtain Responsible Steel certification, an initiative covering various operators in the commodities sector and organisations such as the CDP, of which we are a signatory.
During the month we added HeidelbergCement, Veolia and Sodexo to the portfolio, three companies offering significant valuation discounts and healthy balance sheets, in addition to their activities beginning to return to normal. Conversely, we sold our positions in Eutelsat and Hugo Boss due to the lower upside potential. We also reduced our position in Nokia after its strong gains since the start of the year, and also reduced our weighting in Sanofi, Capgemini, Saint-Gobain and Schneider Electric. We strengthened our positions in Valeo, Safran and Bureau Veritas.
The portfolio maintained its AAA- rating in June.
Subscriptions / redemptions
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