METROPOLE Euro SRI E
ISIN Code FR0013185055
NAV 247.36 €
Documents to be downloaded
Main Value Responsible investment cases for Eurozone stocks
The fund management team: Ingrid TRAWINSKI, Jérémy GAUDICHON, Fredrik BERENHOLT, Isabel LEVY, Thibault MOUREU, Markus MAUS, Cédric HERENG.
Euro Zone equity markets were up slightly in May, albeit with renewed volatility. Investors continued to focus their attention on rising inflation, all the more so given the war in Ukraine, the prospect of monetary tightening by central banks to bring inflation under control, and the consequences of higher interest rates on the economy. Hopes that inflation may be peaking and that Chinese health restrictions might soon be relaxed triggered a strong rally over the latter half of the month. This worked in favour of the energy and banking sectors, which are benefiting from rebounds in oil prices and interest rates respectively. Telecoms also outperformed. Consumer goods, industry and technology underperformed during the month. The sub-fund outperformed its benchmark over the month. The top contributors were Unicredit, Société Générale, ING, Grifols and Alstom. Conversely, Publicis, Stora Enso, Carrefour, Saint-Gobain and Sodexo weighed heaviest on the sub-fund’s performance. Of particular note, we talked to CRH during the month. This Irish building materials company explained how sustainability issues were reshaping its business, leading it to offer more integrated solutions. While the group remains primarily focused on heavy materials, it is expanding its range to other related materials. These strategic developments are enabling it to improve site execution, reduce its environmental impact, and increase product recycling. 25% of the materials used in CRH’s roadbuilding have been recycled. Although this is well below the level of 95% in its plastic architecture products, it is still very encouraging for a heavy industry. CRH shows that energy transition is not just about sourcing renewable energy. It involves companies rethinking their business model, a prerequisite to their sustainability. The sub-fund maintained its AAA- rating in May. We opened a position in SAP during the month. The change of the global ERP leader’s model over to the Cloud is weighing on profitability. Consequently, the stock is now trading at a large discount yet the group is reaching a turning point in terms of business and profitability, which should both recover strongly. We closed our position in Carrefour, which was approaching our target price after a solid performance of late. We also sold the EUROAPI shares that we received from Sanofi following the spin-off of its business producing active pharmaceutical ingredients.
Subscriptions / redemptions
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