Over the past two years, the European Union has signaled a clear strategic shift, launching a series of initiatives aimed at restoring the continent’s leadership in a sustainable way.
EUROPE REASSERTS ITS ECONOMIC, GEOPOLITICAL, AND TECHNOLOGICAL LEADERSHIP
EU member states and the European Commission are implementing ambitious plans to strengthen Europe’s competitiveness, security, and autonomy. A landmark step is the Critical Raw Materials Act1, adopted by the EU Council on March 18, 2024. The legislation secures a sustainable supply of critical materials essential for the energy, digital, and defense transitions. Its targets are clear: 10% of annual demand sourced locally, 40% processed in the EU, and 25% from recycling.
The Draghi Report2 (The Future of European Competitiveness, September 2024) highlighted Europe’s economic lag: over 80% of digital technologies are imported, electricity costs are 2–3 times higher than in the US or China, and only four of the world’s top 50 tech companies are European. Former ECB President Mario Draghi issued 170 actionable recommendations to restore Europe’s competitiveness and growth potential.
Other initiatives, including the Clean Industrial Deal3 (February 2025), accelerating decarbonization and industrial innovation, and ReArm Europe4 (March 2025), reinforcing the EU’s defense pillar, underscore Europe’s commitment to reindustrialization and strategic autonomy.
These ambitions are also supported by budgetary tailwinds. Germany’s historic investment plan, announced in March 2025, could add 1–2 percentage points to GDP annually over the next decade5.
Against this backdrop, Edmond de Rothschild Asset Management launched EdR SICAV Mission Europa, a European equity fund channeling capital toward the pillars of Europe’s structural transformation: defense, energy, innovation, and the financing of the European productive economy.
LEVERAGING EUROPE’S STRUCTURAL STRENGTHS
Europe benefits from intrinsic and structural advantages: a single market of 449 million consumers, around 32 million businesses6, and a dense innovation ecosystem. The eurozone accounts for 17% of global GDP7, comparable to China (17%) and behind the US (26%), which highlights a significant weight in the global economy.
Despite the recent rally in European equities (MSCI Europe NR +16% from 31/12/2024 to 31/10/2025), valuations remain attractive. On a sector-adjusted basis, European equities trade at 26% discount to US peers, well above the 32-year historical average of 10%, reflecting an attractive entry point for long-term investors8.
Structural growth drivers, including reindustrialization, energy transition, and defense modernization, are also expected to sustain long-term investment demand.
These factors create an environment where diversifying capital toward European assets can deliver attractive performance.
EDR SICAV MISSION EUROPA: FOUR STRATEGIC INVESTMENT PILLARS
The fund’s strategy is designed to reflect Europe’s main priorities:
1. Security: Investing in European defense, cybersecurity, and critical supply chain companies (30–50% of the portfolio; at least 30% in defense companies).
2. Competitiveness: Supporting access to abundant, cost-effective energy and advancing Europe’s decarbonization goals (20–50%).
3. Innovation: Investing in critical technologies, hardware, software, AI, and in workforce development to boost productivity (20–50%).
4. Financing: Contributing to Europe’s €800 billion annual renewal needs via initiatives such as the Union of Savings and Investment, the Banking Union, and securitization (10–30%).
A SELECTIVE AND DIVERSIFIED PORTFOLIO
EdR SICAV Mission Europa holds 40–50 carefully selected European companies, balancing sector and country exposure. Small & Mid-Caps9 exposure is capped at 40%, while at least 30% is invested in companies within the European Defense Industrial and Technological Base (BITD)10.
Currently, the fund is overweight in capital goods and Nordic markets and underweight in consumer and financial sectors11.
Among the companies12 in the portfolio that illustrate this approach:
• AVIO: Key player in European space sovereignty (Ariane and Vega launchers) and partner of MBDA in air defense missile production.
• SIEMENS ENERGY: Global leader in energy transition and industrial electrification, including gas power plants and wind turbines.
• BESI: Specialist in semiconductor hybrid bonding technology13, crucial for AI chips and memory manufacturing.
• SOCIÉTÉ GÉNÉRALE: Supports SME and mid-sized enterprise financing, asset management, and investment banking solutions across Europe.
With EdR SICAV Mission Europa, Edmond de Rothschild AM aims to actively support Europe’s structural transformation, at the crossroads of defense, energy transition, and innovation, offering investors both exposure to long-term growth and a role in Europe’s renewed strategic autonomy.
1. Source: European Commission, mars 2024 : https://www.consilium.europa.eu/en/press/press-releases/2024/03/18/strategic-autonomy-council-gives-its-final-approval-on-the-critical-raw-materials-act/
2. Source: European Commission, septembre 2024 : https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
3. Source: European Commission, février 2025 : https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en
4. Source: European Commission, mars 2025 : https://commission.europa.eu/topics/defence/future-european-defence_en
5. Source: Edmond de Rothschild AM Estimate.
6. Source: European Council, février 2025 : https://www.consilium.europa.eu/fr/policies/deeper-single-market/
7. Source: IMF, 2024.
8. Source: Goldman Sachs.
9. Small and mid-caps are listed companies with a market capitalization between €500 million and €10 billion.
10. Source: Edmond de Rothschild Asset Management. Data as of October 31, 2025. A fund's investment policy may change over time.
11. Benchmark index: MSCI EMU
12. The information regarding securities should not be interpreted as an opinion by Edmond de Rothschild Asset Management (France) concerning the expected performance of these securities, nor, if applicable, the anticipated performance of the price of the financial instruments they issue. This information should not be viewed as a recommendation to purchase or sell these securities.
13. Advanced semiconductor assembly technology that combines both direct metal contact and dielectric connection between two chips or circuit layers. It enables denser, faster, and lower-power interconnections than traditional packaging methods.
DISCLAIMER
This is a marketing communication. Please refer to the UCITS prospectus and key investor information document before making any final investment decision.
EdR SICAV Mission Europa is a sub-fund of the French SICAV approved by the AMF and authorized for marketing in France, Austria, Cyprus, Greece, Spain, Germany, United Kingdom, Luxembourg, and Switzerland.
MAIN INVESTMENT RISKS:
The Risk Indicator of Shares A & I is 4. The risk indicator rates this fund on a scale of 1 to 7. This indicator is used to assess the level of risk of this product in comparison to other funds and a category 1 rating does not mean that the investment is risk free. In addition, it indicates the likelihood 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 fund. The actual risk may be very different if you choose to exit before the end of the recommended holding period of this Fund.
The risks described below are not exhaustive. Please refer to the prospectus for the complete list of risks.
Warning relating to the risk of inflation: The characteristics of the UCI do not protect the investor from the potential effect of inflation during the period of investment in the UCI. Thus, the amount invested in principal and the possible income from movable property received during the period will not be revalued by the rate of inflation over this same period. Therefore, the real performance of the UCI, i.e. the net performance of the UCI corrected by the inflation rate, could be negative.
Risk of capital loss: The UCITS does not guarantee or protect the capital invested; investors may therefore not get back the full amount of their initial capital invested even if they hold their units for the recommended investment period.
Discretionary management risk: The discretionary management style is based on anticipating the evolution of the various markets (equities, bonds, money market, commodities, currencies). There is a risk that the UCITS may not be invested at all times in the best performing markets. The UCITS' performance may therefore be below the management objective and the decline in its net asset value may lead to negative performance.
Equity risk: Share prices may move in line with factors specific to the issuing company but they may also react to external political and economic factors. Equity market fluctuations may entail changes in the fund’s net valuation and might have a negative impact on the fund’s net asset value. The fund's performance will depend on the stocks chosen by the portfolio manager. There is a risk that the fund manager might not select the best performing stocks.
Risk related to small and mid-cap companies: Securities of small and mid-cap companies may be significantly less liquid and more volatile than those of companies with significant market capitalization. The net asset value of the UCITS is therefore likely to change more quickly and with greater amplitude.
Exchange rate risk: The fluctuations in foreign currencies might impact the price of stocks held in the portfolio. The fund may hold stocks denominated in a currency other than the fund's designated currency. As a result, fluctuations in exchange rates may cause the fund’s valuation to fall.
November 2025.
This document has no contractual value, it is designed exclusively for information purposes. Any reproduction or use of all or part of its content is strictly prohibited without the authorisation of the Edmond de Rothschild Group.
The information contained herein should 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 the 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 Edmond de Rothschild Group cannot be held liable for any investment or divestment decision taken on the basis of the information contained in this document.
This document has not been reviewed or approved by any regulator in any jurisdiction. The regulations concerning the marketing method of a UCI vary from country to country. The UCIs presented may not be authorized for sale in your country of residence. If you have the slightest doubt about your ability to subscribe to this mutual fund, we invite you to contact your usual advisor.
This document is not intended for citizens or residents of the United States of America or "U.S. Persons" as that term is defined in Regulation S of the U.S. Securities Act of 1933. No bullion product shown herein is permitted for sale under the Securities Act of 1933 or any other applicable U.S. regulations. Therefore, no investment product may be offered or sold, directly or indirectly, in the United States of America to residents and citizens of the United States of America and to U.S. Persons.
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 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 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 obtained from 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 if necessary. In addition, they 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 "Fund Center" tab or free of charge on request.
Past performance and volatility are not indicative of future performance and volatility and are not constant over time. In particular, they may be independently affected by changes in exchange rates. The performance data does not take into account the commissions and fees received when the units or shares of the UCI are issued and redeemed.
"Edmond de Rothschild Asset Management" or "EdRAM" is the trading name of the asset management entities (including subsidiaries and affiliated entities) of the Edmond de Rothschild Group. This name also refers to the Asset Management division of the Edmond de Rothschild Group
The Management Company is required to pay a share of the UCI's financial management fees to intermediaries such as investment firms, insurance companies, management companies, intermediary marketing structurers, distributors or distribution platforms with whom an agreement has been signed in the context of the distribution, the placement of the units of the mutual fund or the establishment of contacts with other investors. This remuneration is variable and depends on the business relationship in place with the intermediary and on the improvement in the quality of the service provided to the customer that can be justified by the beneficiary of this remuneration. This remuneration may be a lump sum or calculated on the basis of the net subscribed assets resulting from the intermediary's action. The intermediary may or may not be a member of the Edmond de Rothschild group. Each intermediary will communicate to the client, in accordance with the regulations applicable to it, any useful information on costs and expenses and its remuneration.
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.
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 English and French at the following link: https://www.edmond-de-rothschild.com/media/go5fm1hx/edram-en-main-rights-of-investors.pdf. 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 have been approved by FINMA to be offered in Switzerland to non-qualified investors. The articles of association, the prospectus, the key information document as well as the annual and half-yearly reports are available for free on www.edmond-de-rothschild.com, the "Fund Center" tab or on request from the Representative.
REPRESENTATIVE AND PAYMENT SERVICE IN SWITZERLAND: Edmond de Rothschild (Suisse) S.A.; Rue de Hesse 18; CH - 1204 Geneva.
For UK Investors: This document is intended for professional investors only. This document is issued by Edmond de Rothschild Asset Management (UK) Ltd. Authorized and regulated by the FCA – No. 578074, 4 Carlton Gardens / UK - London SW1Y 5AA. This document is directed at Investment Professionals as defined in The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, High Net Worth Companies and any other person to whom this document may lawfully be distributed under the Act. It must not be distributed to Retail Investors. It is not intended for anyone in any jurisdiction where distribution of such document is not lawful.
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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 approval number GP 04000015
332.652.536 R.C.S. Paris
