Edmond de Rothschild unveils best European ideas fund
From Products Feb 9 2012 BY: Esther Armstrong
, Senior Reporter
, Portfolio Adviser
Edmond de Rothschild Asset Management has launched a Euro Convictions Fund to represent its top conviction picks in the region.
The Fund invests in the best ideas from Edmond de Rothschild's four other European strategies, which had €4.9bn in AUM at the end of last year, and has Olivier Huet as lead manager.
The firm said the European equity team will have already used their rigorous selection procedure on the stocks considered and the Euro Convictions Fund will showcase promising investment themes and trends which stand the best chance of outperforming the market at each stage in an economic cycle.
Feeding into the fund will be ideas from Edmond de Rothschild's Europe Synergy, Europe Value & Yield, Selective Europe and Euro Leaders Funds.
Edmond de Rothschild Asset Management said: "Strategies with a stronger bias towards yield stocks do better when markets are falling, while those focused on bid targets outperform in recovery phases. Restructuring plays with a value profile tend to do well in upturns.
“Meanwhile, companies with exposure to emerging zone growth, those which benefit from autonomous growth and firms with leadership positions are likely to perform well throughout a cycle."
The fund will have a universe of 80 t0 90 companies to choose from and will hold between 30 and 50 at any one time.
"Our best conviction picks are based on company fundamentals, valuation levels and potential upside. At the same time positions are tactically adjusted to optimise the portfolio's risk/return profile. This involves taking special care over the portfolio's sector and geographical breakdown so as to avoid being over-exposed to a sector or country," the company explained.
Listed for sale across Europe, the fund will be similar to a strategy Edmond de Rothschild Asset Management has been running for a French institutional adviser for more than two years.
That fund has posted returns of more than 24% since 3 July 2009, representing outperformance of 15% compared to its benchmark index.