Echiquier Entrepreneurs, one of the rare genuinely European small cap funds will reopen for new subscriptions on 1 October 2018. With nearly €360 million in assets under management, it is now able to accept additional new investments of approximately €75 million.
In an environment characterised by a reduced offering of French tax-friendly equity savings funds (PEA-PME) and a market environment and liquidity situation more favorable to this asset class, Echiquier Entrepreneurs’ reopening addresses growing demand by investors to allocate savings to financing SMEs and intermediate sized enterprises.
Liquidity management is a major factor for value creation in the small-cap universe. In March 2017, a 5% fee payable to the UCITS for all new subscriptions was adopted to preserve the interests of unitholders. Now that Echiquier Entrepreneurs has regained the necessary capacity in terms of liquidity, application of this fee will be temporarily discontinued¹ .
Since the fund was temporarily closed for new investments or “soft close”, La Financière de l’Echiquier’s small and mid cap team was successful in maintaining the investment discipline for Echiquier Entrepreneurs. This experienced team of three fund managers and two analysts also manages the European mid cap fund, Echiquier Agenor Micap Europe. Both these funds boast 5-star Morningstar ratings.
Echiquier Entrepreneurs exemplifies La Financière de l’Echiquier’s stockpicking expertise in the small and mid-cap segment which represents its historical core business. This is based on an in-depth knowledge of the companies but also their managers in conjunction with a conviction-driven approach resulting in a concentrated portfolio. Since its creation in 2013, it has achieved an annual return of 16.7% versus 11.5% for its benchmark².