auditor s report on the financial statements METROPOLE SELECTION AUDITOR S REPORT ON THE FINANCIAL STATEMENTS Year ending 31 December 2013

Transcription

1 auditor s report on the financial statements METROPOLE SELECTION AUDITOR S REPORT ON THE FINANCIAL STATEMENTS Year ending 31 December 2013

2 AUDITOR S REPORT ON THE FINANCIAL STATEMENTS Year ending 31 December 2013 METROPOLE SELECTION UCITS IN THE FORM OF A FONDS COMMUN DE PLACEMENT (FCP unincorporated mutual fund) Governed by the Financial and Monetary Code Management Company METROPOLE GESTION 9, rue des Filles Saint-Thomas PARIS To unitholders, In accordance with our appointment by the management bodies of the fund s management company, we hereby report to you for the year ended 31 December 2013 on: - the audit of the annual financial statements of the UCITS in the form of a Fonds Commun de Placement (FCP unincorporated mutual fund) METROPOLE SELECTION such as enclosed with this report; - the justification of our assessments; - the specific verifications and disclosures required by law. The financial statements have been drawn up under the responsibility of the Management Company. Our role is to express an opinion on these financial statements, based on our audit. 1. OPINION ON THE FINANCIAL STATEMENTS We carried out our audit in accordance with professional practice standards applicable in France. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, using sample testing techniques or other selection methods, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We certify that the financial statements are, in the light of French accounting rules and principles, regular and fair and give a true view of the results of operations for the year past as well as the financial position and assets and liabilities of the UCITS in the form of a Fonds Commun de Placement (FCP unincorporated mutual fund) as of the end of the said financial year. Without bringing into question the above stated opinion, we wish to draw your attention to the change in accounting regulations set out in the accounting rules and methods part of the appendix. PwC Sellam, 2, rue Vatitnesnil CS Levallois Perret Cedex. T: +33 (0) , F: +33 (0) , opcvm@cabinetsellam.com Firm of Auditors, member of the Compagnie Regionale de Versailles. Limited Liability Company with capital of Registered offices: 63, rue de Villiers Neuilly-sur-Seine RCS Nanterre : VAT No. FR Siret: APE Code: 6920 Z.

3 2. JUSTIFICATION OF OUR ASSESSMENTS In accordance with the provisions of Article L of the French Commercial Code relating to the justification of our assessments, we bring to your attention that the assessments we carried out concerned the appropriate nature of the accounting principles applied as well as the reasonableness of the significant estimates made. In the framework of our assessment of the accounting rules and principles applied by your undertaking for collective investment, we checked that the change in accounting regulations mentioned above along with the enforcement procedures applied were correctly presented in the appended notes. These assessments were carried out as part of our audit approach for the financial statements taken as a whole and contributed to the expression of our opinion in the first part of this report. 3. SPECIFIC VERIFICATIONS AND DISCLOSURES We also carried out the specific verifications required by law in accordance with professional practice standards applicable in France. We have no matters to report regarding the fair presentation and the consistency with the financial statements of the information provided in the annual report and in the documents addressed to unitholders with respect to the financial position and the financial statements. Levallois-Perret, date of the electronic signature Document authenticated by electronic signature The Auditor PwC Sellam Patrick SELLAM

4 METROPOLE GESTION METROPOLE SELECTION Annual report MUTUAL FUNDS - MUTUAL FUNDS UNDER FRENCH LAW This translation is for information purpose only - Only the French version is binding YEAR ENDED

5 contents information about investments and management...6 activity report...9 annual accounts...10 balance sheet...11 assets...11 liabilities...12 off-balance sheet...13 income statement...14 accounting rules and methods...15 changes in net assets...18 additional information...19 UCIT inventory Mutual Funds - Annual report - Year ended :

6 Management company Custodian bank Distributors Statutory auditor Representative and payment departement in Switzerland METROPOLE Gestion 9, rue des Filles Saint-Thomas Paris SOCIÉTÉ GÉNÉRALE Registered office : 29, boulevard Haussmann Paris Address : Tour Granite Paris Cedex 18 METROPOLE Gestion 9, rue des Filles Saint-Thomas Paris PwC SELLAM 2, rue Albert de Vatimesnil - CS Levallois-Perret SOCIÉTÉ GÉNÉRALE, Paris Succursale de Zürich Talackerstrasse 50, 8021 Zürich Suisse Additional information for Swiss investors : The prospectus, the simplified prospectus, the regulations, the annual and semi-annual reports of the Fund and the list of purchases and sales undertaken by the Fund during the financial year may be obtained on simple request and free of charge from the registered office of the representative in Switzerland. information about investments and management Classification : Equities from European Union member countries. UCITS of UCITS : None. Income allocation : Capitalisation FCP (mutual fund) for units A, P, R and W. Investment objective : METROPOLE Sélection seeks to outperform the STOXX Europe Large 200 index, net dividends reinvested, over a 5-year period. Benchmark indicator : The benchmark universe is the STOXX Europe Large 200 index, net dividends reinvested. This index is weighted using the market capitalisations of the 200 largest European stock market capitalisations. The price at the close of trading of this index covering 17 European countries will be used. Investment strategy : The Fund will invest in a selection of European stocks to offer the investor an FCP (mutual fund) of equities with upside potential in the geographic zone formed by the countries of the European Union, as well as Switzerland and Norway. The strategy adopted consists in selecting discounted stocks based on a thorough analysis of the issuing companies' balance sheets, on knowledge of the management teams, and by detecting one or two catalysts likely to reduce the discount within a timeframe of 12 to 18 months. The catalyst comprises one or more facts or events that will effectively make the market realise that the company's prospects have been inaccurately evaluated, such as a restructuring or asset disposals. The Fund will invest in European equities selected for the intrinsic quality of the issuers, and which can be rediscovered by the market. Accordingly, investments may concern all categories of capitalisation. The Fund may also invest in securities not listed on the Stoxx Europe Large index when appropriate. The securities of companies involved in the production of anti-personnel mines and cluster bombs are outside the fund's investment universe. Assets (excluding derivatives) 1. Equities The Fund will invest at least 75% of its assets in EU equities to obtain the best possible performance; exposure to EU equities will be at least 60%. The Fund will invest in a limited number of equities relative to the 200 stocks that make up the STOXX Europe Large 200 index. In view of this, the portfolio's performance may not follow that of the benchmark index. The weight of any given stock contained in the portfolio may not exceed 10% of the Fund's assets. 6 Mutual Funds - Annual report - Year ended :

7 2. Debt securities and money market instruments The Fund may be exposed for up to 15% of its assets to money market products: negotiable debt securities, certificates of deposit and money market funds. Such funds will be taken into account when calculating the 10% ratio specified below. 3. UCITS stocks or units The portion of assets not invested in stocks may be invested, for up to 10% of the Fund's net assets, in units issued by UCITS funds of any classification. METROPOLE Sélection invests only in French UCITS or coordinated European UCITS funds. METROPOLE Sélection may invest in UCITS funds managed by METROPOLE Gestion. Derivative instruments METROPOLE Sélection may use derivative instruments to expose or hedge the Fund's assets with regard to a given index or stock. Only listed options and futures can be used. These instruments are used to hedge the portfolio or to invest in futures or options that will optimise the level of exposure to equity markets of European Union member countries. If the stocks or indices drop, METROPOLE Sélection may purchase put options or sell futures to hedge the portfolio or the stock concerned. The derivatives in which the Fund invests will not have a maturity of more than two years. METROPOLE Sélection will not use specialist derivative instruments such as those traded on OTC markets. Securities with embedded derivatives METROPOLE Sélection may invest its assets in securities with embedded derivatives. The use of this type of instrument will be limited to convertible bonds (ordinary bonds, indexed bonds, bonds redeemable for shares), equity warrants, warrants and guaranteed value certificates. These instruments will be used when it is more attractive to buy the stock via the convertible than to buy it direct. The fund will not invest more than 10% of its assets in securities with embedded derivatives. Securities with embedded derivatives will only be used instead of the corresponding underlying equities, to gain exposure for the portfolio. Deposits Deposits can be used for asset allocation purposes. Deposits may not account for more than 20% of the assets. The term of deposits must not exceed one year. Cash borrowing METROPOLE Sélection may borrow cash for up to 10% of its assets. Temporary sale and purchase of securities METROPOLE Sélection will not enter into any temporary or purchase of securities. Risk profile : Investors should be aware that this UCITS is exposed to market risk, with a minimum level of exposure of 60% to equity risk, which infers a risk of capital loss. Their money will be invested primarily in financial instruments selected by the management company. These instruments will fluctuate in line with the markets. For stocks not denominated in euro, there is an exchange rate risk not hedged by the UCITS. Minimum level of exposure to equity risk: 60%. Market risk: Part of the portfolio may be invested in stocks. Stock price fluctuations may have a positive or negative effect on the net asset value of these stocks. Market risk corresponds to the risk of a drop in stock prices. Risk of capital loss: Capital loss occurs when a unit is sold for less than the purchase price. Investors are warned that their capital is not guaranteed, and might not be recovered in full. Credit risk: Part of the portfolio may be invested in UCITS funds containing corporate bonds. In the event of any deterioration in the bond issuer's credit quality, for example if their rating is downgraded by credit rating agencies, the Fund's net asset value could decrease. Interest rate risk: This concerns the risk of a loss of value of rate instruments resulting from changes in interest rates. In the event of a rise in interest rates, the Fund's net asset value could decrease. Additional Risks Foreign exchange risk: An investment in currencies other than the benchmark currency infers a foreign exchange risk. The FCP may be directly exposed to the foreign exchange risk on the portion of its assets invested in securities denominated in currencies other than the euro. The depreciation of these currencies will result in a drop in the Fund's net asset value. Guarantee and protection : None. 7 Mutual Funds - Annual report - Year ended :

8 Eligible subscribers : Units A, P and R are open to all subscribers. W units are reserved for institutional subscribers governed by Swiss, Dutch, German and British law. METROPOLE Sélection is intended for investors who already hold a portfolio of SICAVs and equity-based FCPs and/or directlyheld securities, and who seek to diversify within the geographical area of the European Union member countries. Given equity exposure, the recommended investment period is at least five years. Investors are strongly advised to diversify their investments to avoid being exposed solely to the risks inherent in this FCP fund. Recommended duration of investment : Over 5 years. Tax regime : METROPOLE Sélection is eligible as a P.E.A. equity savings plan. The UCITS is not subject to corporate income tax. However, dividend payments and capital gains are taxed in the hands of the unitholders. The tax regime that applies to the latent or actual capital gains or losses by the UCITS depends on the tax measures that apply to the individual situation of the investor and/or the UCITS fund's investment jurisdiction. If investors have any doubts regarding their tax status, they should seek advice from a consultant. For further information, the full prospectus is available on request from the management company. The settlement values are available from the management company and the trustee. The full prospectus for the UCITS and the latest annual and periodic documents will be sent within one week on simple written request to: Métropole Gestion 9, rue des Filles Saint-Thomas Paris Tel: +33 (0) Fax: +33 (0) Website: AMF approval date : 12 November Fund creation date: 12 November Mutual Funds - Annual report - Year ended :

9 activity report European equity markets grew strongly in As in 2012, the increase in European equities reflects a drop in the risk premium attached to Europe. During 2013, economic activity considerably improved in Europe with one emblematic sign being the manufacturing PMI index in the euro zone exceeding the 50 limit indicating the end of the recession. In this context of recovery from a crisis, European companies reported results that were on the whole positive. This turning point in Europe combined with bottom of the cycle valuation levels enabled European stocks to continue their increase. The economy remained buoyant In the United States, an important business area for European companies. However, companies with strong exposure to emerging markets suffered from a slowdown in these economies further aggravated by a depreciation in local currencies. In this context, the choice of value within the Metropole Selection portfolio was a positive move. Hence the Metropole Selection fund turned in a performance superior to that of its benchmark index in The investment strategy has not been modified. It consists in selecting stocks with a strong valuation discount and a positive catalyst. This is a "Value" style management process. Among the main movements in 2013, we invested in the telecom sector through such stocks as BT, Deutsche Telekom and Telefonica. And added Spanish stocks such as Banco Popular, Mapfre and Telefonica. Performance Unit C performance: 28.44% Unit P performance: 26.30% Unit R performance: 26.44% Unit W performance: 14.36% Past performance is not a reliable guide to future results. Voting right : The voting right policy exercised by Métropole Gestion is available to holders. Procedure for choice of intermediaries : A procedure for selection and evaluation of intermediaries and counterparties taking account of objective criteria such as brokering cost, quality of execution and research has been set up within the management company. This procedure is available on the website Overall risk of the UCITS : Method chosen by the management company to measure the overall risk of the UCITS : the method used is that of the commitment. Report on intermediation costs in 2013 For the 2013 financial year, Métropole Gestion used services for investment decision support and execution of orders within the framework of transactions on shares. In compliance with the provisions of article of the General Regulations of the Autorité des Marchés Financiers, the allocation formula applied to the services for investment decision support and execution of orders is as follows: - 60% of the total intermediation costs for investment decision support, - 40% of the total intermediation costs for execution of orders. In 2013, Métropole Gestion did not enter into shared commission agreements with the market intermediaries. The measures implemented to prevent or deal with any conflicts of interest in the choice of service providers are stated in and governed by the Intermediary Selection Policy and the Policy for Management of Conflicts of Interest. Information concerning ESG criteria This information is available at : Details of changes during the year: - Creation of the W unit on Mutual Funds - Annual report - Year ended :

10 annual accounts 10 Mutual Funds - Annual report - Year ended :

11 BALANCE SHEET assets Currency EUR EUR Net assets - - Deposits - - Financial instruments , ,05 EQUITIES AND SIMILAR SECURITIES Traded on a regulated or similar market , ,27 Not traded on a regulated or similar market - - BONDS AND SIMILAR SECURITIES Traded on a regulated or similar market - - Not traded on a regulated or similar market - - DEBT SECURITIES Traded on a regulated or similar market Negotiable debt securities , ,45 Other debt securities - - Not traded on a regulated or similar market - - MUTUAL FUNDS Coordinated European UCITS and general purpose French UCITS , ,33 UCITS reserved for certain investors VCF - Funds investing in futures and options - - Listed SPE and investment funds - - Non-listed SPE and investment funds - - TEMPORARY PURCHASES AND SALES OF SECURITIES Receivables representing repurchase agreements - - Receivables representing securities lendings - - Borrowed securities - - Repurchase agreements - - Other temporary purchases and sales - - FORWARD FINANCIAL INSTRUMENTS Transactions on a regulated or similar market - - Other transactions - - OTHER FINANCIAL INSTRUMENTS - - Receivables , ,56 Foreign exchange forward contracts - - Other , ,56 Financial accounts , ,19 Cash and cash equivalents , ,19 Total assets , ,80 11 Mutual Funds - Annual report - Year ended :

12 BALANCE SHEETliabilities Currency EUR EUR Equity Capital , ,35 Previous undistributed net capital gains and losses - - Retained earnings - - Net capital gains and losses for the financial year ,34 - Result , ,67 Total equity (amount representing net assets) , ,02 Financial instruments - - DISPOSALS OF FINANCIAL INSTRUMENTS - - TEMPORARY PURCHASES AND SALES OF SECURITIES Debts representing repurchase agreements - - Debts representing securities borrowings - - Other temporary purchases and sales - - FORWARD FINANCIAL INSTRUMENTS Transactions on a regulated or similar market - - Other transactions - - Debts , ,78 Foreign exchange forward contracts - - Other , ,78 Financial accounts - - Cash credit - - Borrowings - - Total liabilites , ,80 12 Mutual Funds - Annual report - Year ended :

13 OFF-balance sheet Currency EUR EUR Hedging Commitments on regulated or similar markets - Futures market (Futures) Options market (Options) Credit derivatives Swaps Contracts for Differences (CFD) - - OTC commitments - Futures market (Futures) Options market (Options) Credit derivatives Swaps Contracts for Differences (CFD) - - Other commitments - Futures market (Futures) Options market (Options) Credit derivatives Swaps Contracts for Differences (CFD) - - Other transactions Commitments on regulated or similar markets - Futures market (Futures) Options market (Options) Credit derivatives Swaps Contracts for Differences (CFD) - - OTC commitments - Futures market (Futures) Options market (Options) Credit derivatives Swaps Contracts for Differences (CFD) - - Other commitments - Futures market (Futures) Options market (Options) Credit derivatives Swaps Contracts for Differences (CFD) Mutual Funds - Annual report - Year ended :

14 INCOMEstatement Currency EUR EUR Income from financial transactions Income from deposits and financial accounts - - Income from equities and similar securities , ,11 Income from bonds and similar securities - - Income from debt securities , ,07 Income from temporary purchases and disposals of securities - - Income from forward financial instruments - - Other financial income - - Total (I) , ,18 Expenses on financial transactions Expenses on temporary purchases and disposals of securities - - Expenses on forward financial instruments - - Expenses on financial debt -986, ,55 Other financial expenses - - Total (II) -986, ,55 Profit/loss on financial transactions (I - II) , ,63 Other income (III) - - Management fees and depreciation expense (IV) , ,36 Net income for the period (L.214-9) (I - II + III - IV) , ,27 Income adjustments for the period (V) , ,40 Interim payments in terms of the period (VI) - - Income (I - II + III - IV +/- V - VI) : , ,67 14 Mutual Funds - Annual report - Year ended :

15 accountingrules and methods 1The annual accounts are presented according to the format provided for by CRC Regulation no of 2 October 2003 concerning the modified UCITS chart of accounts, in particular by Regulation no of 10 November 2011 ratified by the decree of 27 December 2011, published in the J.O.R.F. (French public journal) of 30 December 2011 (distribution of realised net capital gains) and by Regulation no of 30 November 2012 ratified by the decree of 28 December 2012, published in the J.O.R.F. (French public journal) of 30 December 2012 (in the appendix to the annual accounts of funds and companies referred to in decree no of 10 April 2012 concerning the governance and transparency of fees and commissions charged). The new presentation of accounts associated with this new distribution possibility is applied to your UCITS. The data on the previous close (N-1) have not been restated and correspond to those certified at that time for the previous financial year by the Auditor. Asset valuation and accounting rules Accounts relating to the securities portfolio are kept on an historical cost basis: acquisitions (purchases or subscriptions) and disposals (sales or redemptions) will be recorded at the acquisition price, excluding costs. All disposals generate a capital gain or a capital loss on sale or redemption, and a possible redemption premium. The UCITS fund calculates the value of its securities portfolio at the present value, based on the market value. The prices used to value the portfolio are those at the close of the European markets, converted into Euros if necessary, in line with the exchange rate in Paris on the valuation day. Close-of-trading prices of European securities are obtained at around 8 am (local time) from the Bloomberg database by the Société Générale Securities Services Net Asset Value fund valuation service. For securities whose price has not yet been quoted on the valuation day, the last known price will be used. Financial instruments whose price has not been recorded on the net asset valuation day or whose price was adjusted are valued at their probable trading value, as determined by the management company. The statutory auditor is provided with all such data for audit purposes. The difference between the acquisition cost and the present value generates a capital gain or loss that will be recorded as a "portfolio valuation difference". Income is recorded on an accruals basis. European and other foreign securities are valued on the basis of close-of-trading prices. For securities whose price has not yet been quoted on the valuation day, the last known price will be used. Securities likely to be hedged are valued based on data consistent with the valuation of hedging or arbitrage instruments. The accounting method for income is exclusive of fees. European and other foreign securities are valued on the basis of close-of-trading prices. For securities whose price has not yet been quoted on the valuation day, the last known price will be used. Forward trades will be valued at that day's clearing price. Options will be valued at that day's clearing price. UCITS securities will be valued at the last known net asset value. Negotiable debt securities with a maturity of less than three months at the time of purchase will be valued by recognising the premium/discount upon acquisition on a straight-line basis. Negotiable debt securities with a maturity of more than three months will be valued at their market value, adjusted if necessary by a spread corresponding to the issuer risk. Interest rate swaps are valued at their market value, adjusted if necessary by a spread corresponding to the issuer risk. 15 Mutual Funds - Annual report - Year ended :

16 Valuation method for off-balance sheet commitments Off-balance sheet transactions are valued at their market value. The market value for forward contracts is the price of the security in euro multiplied by the nominal amount of the contract. The market value for options corresponds to the value of the underlying asset. Operating and management costs Operating and management costs include all costs charged directly to the UCITS fund, except for transaction costs. Transaction costs include intermediation expenses (brokerage and exchange fees, etc.) and turnover commissions, if applicable, that may be charged by the depository and the management company. The following may also be payable in addition to operating and management costs: - Performance fees. These are paid to the management company once the UCITS exceeds its targets. - Turnover commissions charged to the Fund. - A share of the income earned on the temporary acquisition and sale of securities. For more details about costs charged to the UCITS fund, refer to the document on key information for the investor. Costs charged to the UCITS Internal management fees external management fees (including all fees excluding transaction fees, outperformance fees and fees relating to investments in UCITS or investment funds, statutory auditors, depositary, distribution, legal fees) Maximum indirect fees (commission and management fees) Turnover commissions paid to the management company Base Net assets excluding the UCITS Metropole Gestion fund Rate, scale (inc. VAT) for A Units 1,5% maximum rate Rate, scale (inc. VAT) for P Units 2% maximum rate Rate, scale (inc. VAT) for R Units 2,2% maximum rate Rate, scale (inc. VAT) for W Units 0,85% maximum rate Net assets N/A N/A N/A N/A Prélèvement sur chaque transaction Performance fees* N/A N/A 0,20% 0,20% 0,20% 0,20% 15% above the STOXX Europe Large 200 net dividends reinvested 15% above the STOXX Europe Large 200 net dividends reinvested (*) The performance fee is based on a comparison between the Fund's performance and its benchmark indicator (with dividends reinvested) for the financial year. The benchmark indicator is the STOXX Europe Large 200 index, net dividends reinvested. The Fund's performance is calculated based on changes in net asset value. Once the Fund's performance exceeds that of the STOXX Europe Large 200 index, net dividends reinvested, a daily provision of no more than 15% of this outperformance is accrued. If the Fund underperforms in relation to this index, a daily provision of no more than 15% of this underperformance is written back against this previously accrued provision. It is calculated daily and deducted annually from the final net asset value for the month of December by the management company. This variable portion will only be paid at the end of each financial year if, during the year elapsed, the Fund's performance is positive and exceeds that of its benchmark indicator, with dividends reinvested. N/A 16 Mutual Funds - Annual report - Year ended :

17 When calculating the final net asset value in December, if the Fund's absolute performance is negative for the financial year, the reference period will be extended for one additional financial year. The provision created previously will be carried over to the following financial year. It will therefore only be finally deducted at the end of the second financial year in the event of a cumulatively positive absolute performance. At the end of this second financial year, the provision created in respect of outperformance over these two financial years will be deducted from the final net asset value in December. If the Fund shows cumulatively negative absolute performance for the two financial years, the provision in respect of outperformance for the first financial year will be permanently reversed. For the first year, the duration of the reference period used to calculate outperformance will be more than 12 months, and will expire on 31 December These fees (flat fees and any variable fees) will be recorded directly in the Fund's income statement. In the event of any redemptions, the management company is paid the share of the performance fee corresponding to the units redeemed. Exceptional legal costs linked to debt collection may be borne by the fund. Subscription and redemption procedures for the UCITS managed by METROPOLE Gestion. Policy for fees in kind Brief description of the intermediary selection procedure Accounting currency: Euro. Nil (free of charge) No intermediary or counterparty provides fees in kind to the fund management company. An intermediary and counterparty selection and assessment procedure taking account of objective criteria such as intermediation expenses, execution quality, research, has been put in place within the management company. Indication of accounting changes subject to special information to unitholders - Changes made: None. - Changes to occur: None. Details of other changes which must be specifically notified to holders (not certified by the statutory auditor) - Changes made: Creation of the W unit on Changes to occur: None. Details and justification of changes in valuation and implementation procedures None. Details of the type of errors that have been corrected during the period None. Details of the rights and conditions attached to each unit category Capitalisation FCP (mutual fund) for units A, P, R and W. Method chosen by the management company to measure the overall risk of the UCITS The method used is that of commitment. 17 Mutual Funds - Annual report - Year ended :

18 Currency EUR EUR Net assets at the beginning of the period , ,31 Subscriptions (including the subscription fee allocated to the UCIT) Redemptions (with deduction of the redemption fee allocated to the UCIT) , , , ,37 Capital gains on deposits and financial instruments , ,68 Capital losses on deposits and financial instruments , ,74 Capital gains on forward financial instruments - - Capital losses on forward financial instruments ,00 Transaction fees , ,65 Foreign exchange differences , ,05 Changes in the estimate difference in deposits and financial instruments : , ,30 - Estimate difference period N , ,18 - Estimate difference period N , ,12 Changes in the estimate difference in forward financial instruments : Estimate difference period N Estimate difference period N Distribution over the previous year net capital gains and losses - - Prior period distribution - - Net income for the period before adjustment accounts , ,27 Deposit(s) paid(s) during the year net capital gains and losses 2changes in net assets Interim payment(s) during the period - - Other items - - Net assets at the end of the period , ,02 18 Mutual Funds - Annual report - Year ended :

19 3 additionalinformation 3.1. Financial instruments : breakdown by legal or economic type of instrument Breakdown of the "Bonds and similar securities" item by type of instrument Traded on a regulated or similar market Not traded on a regulated or similar market Indexed bonds - - Convertible bonds - - Fixed-rate bonds - - Variable-rate bonds - - Zero-coupon bonds - - Investments - - Other instruments Breakdown of the "Debt securities" item by legal or economic type of instrument Traded on a regulated or similar market Breakdown of the "Disposals of financial instruments" item by type of instrument Disposals of repurchase Disposals of borrowed agreements securities Disposals of acquired repurchase agreements Not traded on a regulated or similar market Treasury Bonds - - Commercial Papers ,21 - Certificates of deposit - - MTN - - Other instruments - - Short sales Equities - Bonds - Debt securities - Other instruments - 19 Mutual Funds - Annual report - Year ended :

20 Breakdown of the off-balance sheet sections by market type (in particular rates, securities) Rates Equities Foreign Exchange Other Hedging Commitments on regulated - or similar markets OTC commitments - Other commitments - Other transactions Commitments on regulated - or similar markets OTC commitments - Other commitments Breakdown by rate type for asset, liability and off-balance sheets items Assets Deposits Fixed rate Variable rates Rollover rate Other - Bonds and similar securities - Debt securities ,21 Temporary purchases and sales of securities - Financial accounts ,46 Liabilities Temporary purchases and sales of securities - Financial accounts - Off-balance sheet Hedging - Other transactions Breakdown by residual maturity for asset, liability and off-balance sheets items 0-3 months 3 months - 1 year 1-3 years 3-5 years > 5 years Assets Deposits - - Bonds and similar securities - - Debt securities ,21 - Temporary purchases and sales of securities - - Financial accounts ,46 - Liabilities Temporary purchases and sales of securities - - Financial accounts - - Off-balance sheet Hedging - - Other transactions Mutual Funds - Annual report - Year ended :

21 3.4. Breakdown by listing currency or evaluation for asset, liability and off-balance sheets items This breakdown is provided for the main listing and evaluation currencies, except for the currency in which the books are kept. By main currency GBP SEK CHF Other currencies Assets - Deposits Equities and similar securities , , ,79 - Bonds and similar securities - Debt securities - Collective investment undertakings - Temporary purchases and sales of securities - Receivables - Financial accounts ,26 Liabilities Disposal operations on financial - instruments Temporary purchases and sales of securities - Debts - Financial accounts - Off-balance sheet Hedging - Other transactions - Hors-bilan Opérations de couverture - Autres opérations Receivables and Debts : breakdown by type Details on elements comprising the other receivables and other debts items, particulary the breakdown of foreign exchange forward contracts by type of operation (purchase/sale). Receivables Foreign exchange forward contracts : ,93 Forward currency purchases - Total amount traded for forward currency sales - Other Receivables : Accrued expenses - Subscription receivable ,67 Coupons to be received , Other transactions - Debts Foreign exchange forward contracts : ,42 Forward currency sales - Total amount traded for forward currency purchases - Other Debts : Accrued expenses ,66 Redemption to be paid ,76 Sum to be paid Other transactions - 21 Mutual Funds - Annual report - Year ended :

22 3.6. Equity Subscriptions Redemptions Number of units issued / redeemed during the period: Number of units Amount Number of units Amount UNITS A / FR , , , ,85 UNITS P / FR , , , ,39 UNITS R / FR , , , ,07 UNITS W / FR , , , ,32 Subscription / redemption fee: Amount Amount UNITS A / FR UNITS P / FR UNITS R / FR UNITS W / FR Retrocessions: Amount Amount UNITS A / FR UNITS P / FR UNITS R / FR UNITS W / FR Commissions allocated to the UCIT: Amount Amount UNITS A / FR UNITS P / FR UNITS R / FR UNITS W / FR Mutual Funds - Annual report - Year ended :

23 3.7. Management fees Operating and management fees (fixed charges) as a % of the average net assets % Unit class: UNITS A / FR ,46 UNITS P / FR ,94 UNITS R / FR ,11 UNITS W / FR ,83 Outperformance fee (variable charges) : amount of fees for the period Unit class: UNITS A / FR Amount UNITS P / FR ,73 UNITS R / FR ,38 UNITS W / FR Retrocession of management fees : - Amount of fees retroceded to the UCIT - - Breakdown by "target" UCIT : - UCIT UCIT UCIT UCIT Mutual Funds - Annual report - Year ended :

24 3.8. Commitments received and granted Description of the guarantees received by the UCIT with mention of capital guarantees...none Description of other commitments received and/or granted...none 3.9. Other information Current value of financial instruments pertaining to a temporary acquisition : - Financial instruments as repurchase agreements (delivered) - - Other temporary purchases and sales Current value of financial instruments comprising guarantee deposits : Financial instruments received as a guarantee and not written to the balance sheet : - equities - bonds - debt securities - other financial instruments Financial instruments granted as a guarantee and maintained in their original item : - equities - bonds - debt securities - other financial instruments Financial instruments held as a portfolio issued by the entities related to the management company (funds) or financial managers (Mutual Funds) and UCITS managed by these entities : - UCITS ,00 - other financial instruments Mutual Funds - Annual report - Year ended :

25 3.10. Income allocation table (In the accounting currency of the UCIT) Interim payments in terms of the period Date Unit Class Total amount Unit amount Total tax credit Unit tax credit Total interim payments - 25 Mutual Funds - Annual report - Year ended :

26 Income allocation EUR EUR Sums remaining to be allocated Retained earnings - - Adjusted retained earnings , ,67 Result , ,67 UNITS A / FR Currency EUR EUR Allocation Distribution - - Retained earnings for the period - - Capitalisation , ,74 Total , ,74 Information concerning the units conferring distribution rights Number of units - - Unit distribution - - Tax credits - - UNITS P / FR Currency EUR EUR Allocation Distribution - - Retained earnings for the period - - Capitalisation , ,08 Total Information concerning the units conferring distribution rights , ,08 Number of units - - Unit distribution - - Tax credits Mutual Funds - Annual report - Year ended :

27 UNITS R / FR Currency EUR EUR Allocation Distribution - - Retained earnings for the period - - Capitalisation -10, ,15 Total Information concerning the units conferring distribution rights -10, ,15 Number of units - - Unit distribution - - Tax credits - - UNITS W / FR Currency EUR EUR Allocation Distribution - - Retained earnings for the period - - Capitalisation ,21 - Total ,21 - Information concerning the units conferring distribution rights Number of units - - Unit distribution - - Tax credits Mutual Funds - Annual report - Year ended :

28 3.11. Allocation table of amounts available for distribution relating to net capital gains and losses (in the accounting currency of the UCITS) Payments on net capital gains and losses for the financial year Date Total amount Unit amount Total interim payments Mutual Funds - Annual report - Year ended :

29 Allocation of net capital gains and losses EUR EUR Amounts remaining to be allocated Previous undistributed net capital gains and losses - - Net capital gains and losses for the financial year ,34 - Payments on net capital gains and losses for the financial year - - Total ,34 - UNITS A / FR Currency EUR EUR Allocation Distribution - - Undistributed net capital gains and losses - - Capitalisation ,11 - Total ,11 - Information concerning units conferring distribution rights Number of units - - Unit distribution - - UNITS P / FR Currency EUR EUR Allocation Distribution - - Undistributed net capital gains and losses - - Capitalisation ,55 - Total ,55 - Information concerning units conferring distribution rights Number of units - - Unit distribution Mutual Funds - Annual report - Year ended :

30 UNITS R / FR Currency EUR EUR Allocation Distribution - - Undistributed net capital gains and losses - - Capitalisation 38,73 - Total 38,73 - Information concerning units conferring distribution rights Number of units - - Unit distribution - - UNITS W / FR Currency EUR EUR Allocation Distribution - - Undistributed net capital gains and losses - - Capitalisation ,95 - Total ,95 - Information concerning units conferring distribution rights Number of units - - Unit distribution Mutual Funds - Annual report - Year ended :

31 3.12. Table of results and other characteristic elements of the Fund over the last 5 periods UCIT creation date : Currency EUR Net assets , , , , ,86 UNITS A/ FR UCIT currency : EUR Number of outstanding units , Net asset value 542,77 422,57 342,63 424,59 362,82 Unit distribution net capital gains and losses (including - - interim payments) Unit distribution (including interim - - payments)* Unit tax credit transferred to unit holders (individuals) (1) - - Unit capitalisation* 21,42 4,38 4,20 1,19 5,03 * The amounts of unit distribution, unit capitalisation and tax credits are calculated according to the accounting currency of the UCITS. The unit capitalisation is defined as the sum of the result and of the net gains and losses on outstanding units. This calculation method has been applied since January, 1st (1) In application of the Tax Instruction of 4 March 1993 of the General Tax Directorate, the unitary tax credit is determined on the day the dividend is clipped by dividing the total amount of the tax credits amongst the outstanding units on that date. UNITS P / FR UCIT currency : EUR Number of outstanding units , , , Net asset value 244,08 193,25 157, Unit distribution net capital gains and losses (including - - interim payments) Unit distribution (including interim - - payments)* Unit tax credit transferred to unit holders (individuals) (1) - - Unit capitalisation* 6,04 0,90 1, * The amounts of unit distribution, unit capitalisation and tax credits are calculated according to the accounting currency of the UCITS. The unit capitalisation is defined as the sum of the result and of the net gains and losses on outstanding units. This calculation method has been applied since January, 1st (1) In application of the Tax Instruction of 4 March 1993 of the General Tax Directorate, the unitary tax credit is determined on the day the dividend is clipped by dividing the total amount of the tax credits amongst the outstanding units on that date. 31 Mutual Funds - Annual report - Year ended :

32 UNITS R / FR UCIT currency : EUR Number of outstanding units , Net asset value 242,17 191,53 157, Unit distribution net capital gains and losses (including - - interim payments) Unit distribution (including interim - - payments)* Unit tax credit transferred to unit holders (individuals) (1) - - Unit capitalisation* 5,64-0,36 0, * The amounts of unit distribution, unit capitalisation and tax credits are calculated according to the accounting currency of the UCITS. The unit capitalisation is defined as the sum of the result and of the net gains and losses on outstanding units. This calculation method has been applied since January, 1st (1) In application of the Tax Instruction of 4 March 1993 of the General Tax Directorate, the unitary tax credit is determined on the day the dividend is clipped by dividing the total amount of the tax credits amongst the outstanding units on that date. UNITS W / FR UCIT currency : EUR Number of outstanding units , Net asset value 228,72 - Unit distribution net capital gains and losses (including - - interim payments) Unit distribution (including interim - - payments)* Unit tax credit transferred to unit holders (individuals) (1) - - Unit capitalisation* 6,65 - * The amounts of unit distribution, unit capitalisation and tax credits are calculated according to the accounting currency of the UCITS. The unit capitalisation is defined as the sum of the result and of the net gains and losses on outstanding units. This calculation method has been applied since January, 1st (1) In application of the Tax Instruction of 4 March 1993 of the General Tax Directorate, the unitary tax credit is determined on the day the dividend is clipped by dividing the total amount of the tax credits amongst the outstanding units on that date. 32 Mutual Funds - Annual report - Year ended :

33 4 UCITinventory Asset Code Asset Description Holding Status Nominal Market Value - FCY Quotation Ccy % TNA METROPOLE SELECTION Valeurs mobilieres Equities GB00B82YXW83 VESUVIUS PLC PROPRE GBP 0.97 SE ERICSSON LM-B SHS PROPRE SEK 4.77 NL REED ELSEVIER NV PROPRE EUR 1.36 NL RANDSTAD HOLDING NV PROPRE EUR 4.26 JE00BFNWV485 WOLSELEY PROPRE GBP 1.18 IT UNICREDIT SPA REGR PROPRE EUR 2.68 IT BUZZI UNICEM SPA PROPRE EUR 1.74 IT INTESA SANPAOLO SPA PROPRE EUR 5.07 IT BANCA POPOLARE DELL'EMILIA PROPRE EUR 1.84 IE00B1RR8406 SMURFIT KAPPA PROPRE EUR 2.37 IE CRH PLC PROPRE EUR 3.68 GB KINGFISHER PROPRE GBP 3.87 GB MARKS AND SPENCER GROUP PROPRE GBP 2.52 GB BT GROUP PLC PROPRE GBP 3.01 GB GKN PROPRE GBP 0.99 GB LLOYDS BANKING GROUP PLC PROPRE GBP 3.55 GB IMI PLC PROPRE GBP 0.93 GB HAYS PLC PROPRE GBP 2.20 FR REXEL PROPRE EUR 2.31 FR BNP PARIBAS PROPRE EUR 2.75 FR SOCIETE GENERALE A PROPRE EUR 2.75 FR CAP GEMINI SA PROPRE EUR 3.57 FR SANOFI PROPRE EUR 3.61 FR ATOS PROPRE EUR 3.20 ES E18 TELEFONICA SA PROPRE EUR 3.23 ES E34 MAFPRE SA PROPRE EUR 3.20 ES BANCO POPULAR ESPANOL S.A. PROPRE EUR 2.32 DE DAIMLER PROPRE EUR 4.03 DE HEIDELBERGCEMENT AG PROPRE EUR 2.92 DE DEUTSCHE TELEKOM AG-NOM PROPRE EUR 4.88 CH ABB LTD-NOM PROPRE CHF 4.14 Total Equities Ucits FR METROPOLE FRONTIERE EUROPE PROPRE EUR 0.39 FR METROPOLE AVENIR EUROPE A PROPRE EUR Mutual Funds - Annual report - Year ended :