Edmond de Rothschild Asset Management has launched the Edmond de Rothschild Fund UK Synergy, available through the Edmond de Rothschild Fund UCITS umbrella domiciled in Luxembourg.
The equity fund seeks to capture upside on UK stocks that are possible bid targets and/or undergoing restructuring.
Edmond de Rothschild Fund UK Synergy invests across the whole spectrum of UK equities (circa 600 stocks). It aims to generate consistent outperformance over a complete business cycle through two complementary drivers. The fund draws upon the selection of stocks potentially targeted in takeover deals, as well as companies that may benefit from restructuring opportunities.
With a proven track record, fund managers, Philippe Lecoq and Olivier Huet, have worked together for 12 years. They are part of a stable team of eight portfolio managers and one product specialist dedicated to European equities capitalising on 17 years of average experience. They both believe there is currently a strong M&A cycle in progress, with UK stocks now looking particularly attractive after several years of underperformance. Edmond de Rothschild Fund UK Synergy follows the same proven investment process as their EUR1.4 billion Edmond de Rothschild Fund Europe Synergy strategy.
Philippe Lecoq says: “Our existing Edmond de Rothschild Fund Europe Synergy strategy currently holds some 30% of its assets in the UK. In the lead up to the EU referendum in June we believe that M&A activity will be slightly constrained but for the mid-term, we are expecting a flurry of M&A activity post the referendum vote when uncertainty recedes. Corporate activity will remain strong this year and into 2017 as this kind of cycle tends to last between three and four years. The combination of weak growth outlook and low inflation is a big incentive for corporates to transform their portfolio of assets and/or to consolidate some of their activities.”
Dan Lee, Head of UK Wholesale at Edmond de Rothschild in London, says: “We are very pleased to be bringing this exciting new fund to a broad mix of UK investors. Philippe and Olivier have worked together for many years with a successful and proven strategy. In an environment where there is an enormous choice of UK equity funds, the dual approach of targeting M&A bid targets and restructuring/turnaround companies stands out as a compelling, differentiated investment proposition. I look forward to introducing the team’s capabilities and discussing the strategy with investors in the months ahead.”
