In June 2025, Edmond de Rothschild Asset Management launched EdR SICAV Mission Europa, a European equity strategy aimed at supporting and strengthening European sovereignty.
Diversified across four complementary pillars (Security, Competitiveness, Innovation, and Finance), this strategy aims to support the continent’s structural transformation at the intersection of defense, the energy transition, and innovation.
Anthony Penel1, the fund manager, discusses the challenges associated with this topic in this interview.
Is the issue of sovereignty still as central as it was 18 months ago?
The enthusiasm surrounding this issue has not waned, and I would even say that its scope has broadened.
It is now widely acknowledged that Europe must strengthen its competitiveness, its industrial capabilities, and its autonomy in strategic areas. This view remains widely shared, even if the implementation of the Draghi report’s recommendations is considered too slow. This is precisely what led to the creation this summer of the Rhine Group, a think tank initiated in part by Mario Draghi and bringing together leading figures from the academic, business, and
political worlds. Its goal is to keep pressure on European institutions to accelerate the necessary decisions.
This concern is also reflected in investor interest: new investment solutions focused on European self-reliance continue to be launched.
However, the nature of the debate has evolved. In the first half of 2025, sovereignty was very often discussed from a defense perspective, against the backdrop of European rearmament. Today, the discussion has broadened: it now focuses more on reindustrialization, critical technologies, energy, infrastructure, securing supply chains, and financing investments in sovereignty, particularly the issue of Savings and Investments Union2. Defence remains a cornerstone, but it is now part of a broader vision of European strategic autonomy.
For example, in the EdR SICAV Mission Europa fund, the “safety” segment accounts for 27 %3 of the portfolio, of which approximately 22%3 is allocated to the defense sector. This positioning is consistent with this observation.
Why has energy become a key issue for European competitiveness?
Energy is a matter of sovereignty, purchasing power, and industrial competitiveness. This issue, already a major concern due to the war in Ukraine, has become central since the war in Iran.
As winter 2026 approaches, European natural gas reserves are at particularly low levels compared to the past ten years. Issues related to insufficient reserves may arise, particularly for countries in Central and Eastern Europe, which are very large consumers. The price of gas, which generally ranged between 10 and 30 euros per MWh in the fifteen years leading up to the war in Ukraine, had reached 200 to 300 euros in 2022; it rose from about 30 to 40 euros in early 2026 to 70–80 euros by the end of the year4. This increase directly impacts manufacturers’ margins.
The competitiveness/energy segment, which accounts for 27%3 of the portfolio, enables investment across the entire value chain: production with Eni, liquefied natural gas transportation with GTT, whose technology is used in 98% of transport tanks, and network infrastructure with Terna, Siemens Energy, and Getlink3.
Oil remains a key component of the energy equation. Since the start of the war in Iran, the price per barrel has hovered around $100, compared with $60 to $70 previously. Given the geopolitical context, this increase is ultimately modest.
At the same time, diesel, gasoline, and other refined products have seen a much sharper increase than crude oil. Refining margins are currently at particularly high levels, favoring a market that is more oriented toward refined products than toward crude. Europe has significant refining capacity. EdR SICAV Mission Europa is notably exposed to this theme through Repsol3, a Spanish energy company in the portfolio.
In fact, we selected this company when the strategy was first launched; it supplies Europe with a portion of its petroleum products through its refineries located in Spain.
The challenge is to ensure that energy is available in sufficient quantities,
accessible, and delivered via robust networks.
How are finance and capital markets critical to European autonomy?
The conclusion is clear: there can be no industrial or technological sovereignty without the capacity for large-scale financing. Europe has abundant savings for this purpose, but it must channel more of them toward productive assets: stocks, infrastructure, private debt, innovation, technology, and defense.
This requires banks capable of supporting companies beyond their national borders, asset managers mobilizing long-term savings, and robust marketplaces to finance corporate growth through to their initial public offerings.
It is with this in mind that the portfolio holds securities such as Euronext, Banco BPM, and Deutsche Börse5.
Finance is therefore not just one sector among many: it is one of the infrastructures that enables other strategic sectors to develop. European sovereignty also depends on a robust banking system. The Draghi report described a fragmented European banking system in 2024, in which the top 10 banks by market capitalization were collectively worth less than the largest U.S. bank. The issue of banking consolidation, including cross-border consolidation, is therefore a key element of sovereignty.
Does European innovation rely solely on artificial intelligence and semiconductors?
Artificial intelligence, data centers, and semiconductors are at the heart of global competition, and Europe must strengthen its capabilities in these areas. Today, Mistral, a French company, is the leading European player in generative AI, which highlights both the potential and the gap that needs to be closed. But innovation is not limited to high-profile tech companies; it also encompasses the infrastructure and tools that enable productivity gains. The innovation segment accounts for 26%3 of the portfolio and includes, for example, Merlin Properties, which invests in the physical infrastructure of data centers, and Springer Nature, a publisher of leading scientific journals, including *Nature*, which plays a central role in disseminating the knowledge that fuels tomorrow’s research and innovations.
Another challenge is demographic aging: considering this trend, the Draghi report refers to a massive wave of retirements beginning in 2040, accounting for approximately 1 %5 of the current European workforce each year. The challenge here is to invest heavily in software, digital services, equipment, and training to sustainably support European productivity and offset these numerous departures.
By further mobilizing savings and financing capacity, Europe can consolidate its autonomy in the most strategic sectors. Security, energy, innovation, and capital markets thus serve as complementary levers for strengthening their competitiveness. This momentum calls for a long-term vision capable of transforming European ambitions into concrete investments.
ADVERTISEMENT: This is an advertisement. Please refer to the UCITS prospectus and key investor information documents before making any final investment decision
1 The identities of the managers listed in this document may change during the product’s term
2 Savings and Investment Union: a European initiative aimed at better channeling
savings from individuals and businesses toward productive investments, to support growth, innovation, and the green transition, while strengthening the integration of European financial markets.
3 The information regarding securities contained in this document may under no circumstances be interpreted as an opinion by Edmond de Rothschild Asset Management (France) on the future performance of the share prices of the companies mentioned, nor, where applicable, on the likely performance of the financial instruments that these companies may issue. No information contained in this document should be construed as a solicitation to buy or sell these shares. The portfolio’s composition may change in the future. Data as of September 30, 2026. Source: Edmond de Rothschild Asset Management (France).
4 Source: Bloomberg
5 Draghi Report. Available at: https://commission.europa.eu/document/download/97e481fd-2dc3-412d-be4c-f152a8232961_frfilename=The%20Draghi%20report%20A%20competitiveness%20strategy%20for%20Europe%20%28Part%20A%29-FR.pdf
6 The shares described here are the main euro-denominated shares. Please note that not all costs and classes of shares are mentioned in this document. Please refer to the DIC/prospectus for more details.
Fund Characteristics6
Investment Objective: EdR SICAV Mission Europa is a European equity fund that aims, over the recommended investment horizon, to outperform its benchmark index, the MSCI EMU (NR).
Reference currency: EUR
Launch date: June 27, 2025
ISIN codes: Class A: FR001400ZTJ7 / Class I: FR001400ZTL3
Subscription fees: Class A: Max. 3% / Class I: None
Minimum initial subscription: Class A: 1 share / Class I: €500,000
Management fee (including tax): Class A: Max. 1.80% / Class I: Max. 0.90%
Operating and other service fees: Max. 0.15%
Performance fee: 15% per year of the outperformance relative to the benchmark
Redemption fee: None
Benchmark: MSCI EMU (NR)
Recommended investment horizon: > 5 years
EdR SICAV Mission Europa is a sub-fund of a French SICAV authorized by the AMF and approved for distribution in France, Austria, Italy, Belgium, Cyprus, Greece, the United Kingdom, Spain, Germany, Luxembourg, and Switzerland.
Investment Risks 4
The risk indicator rates this UCI on a scale of 1 to 7. This indicator assesses the level of risk of this product compared to other UCIs and the mention of category 1 does not mean that the investment is risk-free. In addition, it indicates the probability that this product will incur losses in the event of market movements or our inability to pay you. This indicator assumes that you hold the product until the end of the recommended holding period of this UCI. The actual risk may be very different if you opt to exit before the end of the recommended holding period of this UCI. The risks described below are not exhaustive.
Please refer to the prospectus for a complete list of risks.
Risk of capital loss: The sub-fund does not benefit from any guarantee or protection, so the capital initially invested may not be fully returned even if the subscribers hold the shares for the recommended investment period. The performance of the sub-fund may therefore be lower than the management objective and the decrease in its net asset value may lead to a negative performance.
Equity risk: The value of a share may change depending on factors specific to the issuing company but also on exogenous, political or economic factors. Variations in the equity markets as well as variations in the convertible bond markets, the evolution of which is partly correlated with that of the underlying shares, can lead to significant changes in net assets that can have a negative impact on the performance of the sub-fund’s net asset value.
Small and mid-cap risk: Securities of small or mid-cap companies may be significantly less liquid and more volatile than those of companies with a large market capitalisation. The net asset value of the Fund is therefore likely to change more quickly and with large amplitudes.
Liquidity risk: The markets on which the Fund trades may occasionally be affected by a lack of liquidity. These market conditions may affect the prices at which the Fund may have to liquidate, initiate or modify positions.
Disclaimer
October 2026. Non-contractual document designed for informational purposes only. Reproduction or use of its contents is strictly prohibited without the permission of the Edmond de Rothschild Group. The information contained in this document shall not be construed as an offer or solicitation of a transaction in any jurisdiction in which such offer or solicitation would be unlawful or in which the person making such offer or solicitation is not authorized to act. This document does not constitute and should not be construed as investment advice, tax or legal advice, or a recommendation to buy, sell or continue to hold any investment. The investor acquires fund units/shares, not underlying assets. The Edmond de Rothschild Group cannot be held liable for any investment or divestment decision taken based on this information. The UCIs present may not be authorized to be marketed in your country of residence. If you have any doubts about your ability to subscribe to a UCI, we invite you to contact your usual advisor. The figures, comments, projections, and other elements contained in this presentation reflect the Edmond de Rothschild Group’s feelings on the markets, their evolution and regulations, considering its economic context and the information available to date. They may no longer be relevant on the day the investor becomes aware of them. Consequently, the Edmond de Rothschild Group cannot be held responsible for the quality or accuracy of the economic information and data provided by third parties. Any investment involves specific risks. It is therefore recommended that investors ensure that any investment is appropriate to their personal situation by using independent advice where appropriate. Investing in a fund means that you become the owner of units or shares in the fund, and not of the underlying assets that the fund may hold.
The investor must consider all the characteristics or objectives of this product, including in terms of sustainability (if applicable) before investing. In addition, the investor must read the Key Information Document (KID) and/or any other document required by local regulations, provided before any subscription and available in French and English on the website www.edmond-de-rothschild.com the “Fund Center” tab or free of charge on request. The management company may decide to cease marketing this Fund, in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/ EU. The tax treatment depends on the individual situation of each client and is subject to change later. Source of information: Unless otherwise indicated, the sources used in this document are those of the Edmond de Rothschild Group.
For EU investors: This document is issued by Edmond de Rothschild Asset Management (France). You can obtain a summary of investor rights in French and English at the following link: www.edmond-derothschild.com/media/4yvncr2p/edram-fr-principaux-droits-des-investisseurs.pdf. In Spain, the SICAV is registered with the CNMV under number 1801.
For Swiss investors: This advertising document is issued by Edmond de Rothschild (Suisse) S.A., located at 18 rue de Hesse, 1204 Geneva, Switzerland, a Swiss bank authorised and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”). The sub-funds of “Edmond de Rothschild SICAV” listed in this document are sub-funds of the SICAV under French law “Edmond de Rothschild SICAV” approved by the AMF and approved by FINMA to be offered in Switzerland to non-qualified investors.
REPRESENTATIVE AND PAYMENT SERVICE IN SWITZERLAND:
EDMOND DE ROTHSCHILD (SWITZERLAND) S.A.
Rue de Hesse 18; CH - 1204 Geneva.
© Copyright Edmond de Rothschild. All rights reserved.
ASSET MANAGEMENT COMPANY AND GLOBAL DISTRIBUTOR:
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré; 75401 Paris Cedex 08
Public limited company with a Management Board
and Supervisory Board with a capital of 11,033,769 euros
AMF GP 04000015 approval number — 332.652.536 R.C.S. Paris
www.edmond-de-rothschild.com
