With its culture of entrepreneurship and innovation, Edmond de Rothschild Asset Management finances the real economy through its investments, guiding and supporting entrepreneurs at key points in their operations and over the long term, whether their company is listed or not.
In keeping with this commitment, Edmond de Rothschild Asset Management is launching the Edmond de Rothschild SICAV European Smaller Companies fund, reflecting a strong conviction on small companies. At the forefront of innovation in multiple niche segments, they combine strong growth potential with an attractive risk/return profile, making them an essential segment for any asset allocation.
A LONG-TERM VISION
The new Edmond de Rothschild SICAV European Smaller Companies fund aims to support small and midcap companies over the long term, to help them reach milestones in their growth throughout Europe. By investing, in particular, in family businesses or companies with a strong entrepreneurial spirit that are still limited in size but which are in a phase of growth, the fund allows its investors to combine financial performance with a positive contribution to the real economy. In Europe, these companies represent 70% of the job market. By virtue of their innovative economic models, they play a major role in our society’s structural trends (demographic transition, digitalisation and the environment).
The fund’s investment strategy focuses mainly on European companies with market capitalisations of less than €5 billion at the time of purchase, boasting compelling earnings growth prospects combined with environmental, social and governance suitability. The fund’s investment philosophy is based on three pillars: conviction-based stock selection built on fundamental analysis with an approach “on the field”; active investment management combined with a rigorous risk management process; and a long-term investment vision contributing to the success of companies.
Four essential Criteria (“the Four Cs”) – Growth of revenues (CAGR), Competitive advantage in the market landscape, High free cash flow generation (Value Creation) and High quality of senior management teams (Chief) – are weighed by the fund management team, which attends more than 800 meetings each year with target companies. Special attention is also paid to sustainability, with job creation as a core element.
THE ENTREPRENEURIAL SPIRIT
As a long-term partner of choice for entrepreneurs, Edmond de Rothschild has also developed an entrepreneurial approach to finance through its private equity strategies. With this asset class, we provide concrete support for entrepreneurs developing their business plan by providing financing as well as genuine monitoring of their strategy. Edmond de Rothschild Private Equity goes further, selecting innovative, distinctive and forward-looking strategies addressing challenges facing our society.
Our unique partnership model, closely combining financial expertise and industrial know-how, guides new Private Equity teams as they develop their strategy. That’s how the Edmond de Rothschild Private Equity platform brings together engineers with experts in environmental infrastructure and soil remediation, with company founders, and more.
The Amethis strategy, which aims to develop the entrepreneurial wealth of SMEs in Europe and Africa, is providing entrepreneurs with solid expertise and a whole ecosystem in Europe, Africa and the Middle East. By tapping into this comprehensive regional network, SMEs can envision going global successfully and deploying an export development plan. The Trajan strategy aims to provide a response to the transfer issues encountered by entrepreneurs wishing to hand over the reins, both capitalistically and operationally, notably to retire. The strategy of future-proofing these companies and accelerating their growth, by scouting out suitable buyers, fits in with the process of preserving the regional economic fabric that is vital to France.
Edmond de Rothschild’s entrepreneurial spirit means they stand by entrepreneurs while they develop their business plan – not only providing financing but also engaging with the strategy they create. Throughout its strong family history, the Group has built a unique ecosystem for identifying, investing in, and decisively backing visionary projects.
MAIN INVESTMENT RISKS
The synthetic risk/return indicator rates the Edmond de Rothschild SICAV European Smaller Companies on a scale of 1 to 7. The risk and return category presented may change over time. Category 1 does not mean a risk-free investment. Unit A and I of this UCI are rated in category 6, in line with the nature of the securities and the geographical areas presented in the “Investment objectives and policy” section of the KIID as well as the unit’s own currency. The risks described below are not exhaustive: risk of capital loss, equity risk, risk related to small and mid-cap companies, liquidity risk.
DISCLAIMER
May 2023. This document is issued by Edmond de Rothschild Asset Management (France). Non-contractual document designed for information 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 does not constitute an offer or solicitation to trade in any jurisdiction in which such offer or solicitation is unlawful or in which the person making such offer or solicitation is not qualified to act. This document does not constitute and should not be construed as investment, tax or legal advice, nor as a recommendation to buy, sell or continue to hold any investment. The Edmond de Rothschild Group shall not be held liable for any investment or divestment decision taken on the basis of the information contained in this document. The funds presented may not be registered and/or authorized for sale in your country of residence. If you have any doubts about your ability to subscribe to this fund, please contact your professional advisor. The figures, comments, forward looking statements and other information contained in this presentation reflect the Edmond de Rothschild Group’s view of the markets, their development and their regulations, taking into account its expertise, the economic context and the information available to date. They may no longer be relevant on the day the investor reads them. Consequently, the Edmond de Rothschild Group shall not be held responsible for the quality or accuracy of economic information and data obtained from third parties.
Any investment involves specific risks. Investors are therefore advised to ensure that any investment is suitable for their personal circumstances by seeking independent advice where appropriate. In addition, investors should read the Key Investor Information Document (KIID) and/or any other document required by local regulations, which is provided prior to any subscription and is available in French and in English on the website www.edmond-de-rothschild.com under the “Fund Center” tab or free of charge on request. A summary of investors’ rights in French and in English can be obtained at the following link: https://www.edmond-de-rothschild.com/SiteCollectionDocuments/LegalWebPartSiteDocument/ France/_documents-reglementaires/EdRAM-France/EDRAM-EN-Main-rights-of-investors.pdf. Edmond de Rothschild Asset Management (France) 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. “Edmond de Rothschild Asset Management” or “EdRAM” is the trade name of the asset management entities of the Edmond de Rothschild Group. Source of information: unless otherwise indicated, the sources used in this document are those of the Edmond de Rothschild Group. Edmond de Rothschild SICAV European Smaller Companies is registered at the CNMV under no 1801.
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GLOBAL DISTRIBUTOR AND MANAGEMENT COMPANY
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47 rue du Faubourg Saint-Honoré / FR - 75401 Paris Cedex 08
Public limited company with a Management Board and Supervisory Board and a capital of 11,033,769 €
AMF approval number GP 04000015 - 332.652.536 R.C.S. Paris
ABOUT THE EDMOND DE ROTHSCHILD GROUP
As a conviction-driven investment house founded upon the belief that wealth should be used to build the world of tomorrow, Edmond de Rothschild specialises in Private Banking and Asset Management and serves an international clientele of families, entrepreneurs and institutional investors. The group is also active in Corporate Finance, Private Equity, Real Estate and Fund Services.
With a resolutely family-run nature, Edmond de Rothschild has the independence necessary to propose bold strategies and long-term investments, rooted in the real economy.
Founded in 1953, the Group had nearly CHF 158 billion in assets under management at the end of December 2022, 2,500 employees, and 29 locations worldwide.
Press contact:
EDMOND DE ROTHSCHILD
Florence Gaubert: +33 6 25 28 11 51 – f.gaubert@edr.com