The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Edmond de Rothschild Asset Management
Edmond de Rothschild Asset Management has launched EdR SICAV Mission Europa, a European equity fund.

The fund is “designed to invest in companies that contribute to the strategic strengthening of the European Union on the global stage,” the firm said in a statement. 

The fund, which invests in firms that play to four themes – security, competitiveness, innovation and financing – holds around 50 companies, giving sector and geographical diversification in the EU. Defence stocks account for at least 30 per cent of the total assets; it also holds small and mid-cap stocks with “strong potential.” 

Russia’s invasion of Ukraine in February 2022, and US President Donald Trump’s demand that European nations shoulder more burdens for their own defence under NATO, has prompted countries – particularly Germany – to ramp up defence and infrastructure spending. Several investment firms and banks (see examples here, here and here) have launched funds and products responding to this theme. It also raises questions of whether the whole “ESG” approach must adapt so that investing in defence can be accommodated. In the past, defence has been declared off-limits.

European equity manager, Anthony Penel will manage the strategy alongside Caroline Gauthier, co-head of equity management at Edmond de Rothschild Asset Management. 

“Faced with the pressing challenges of a new fragmented world order, the European Union must strengthen its sovereignty and accelerate its competitiveness,” Penel said. "EdR’s Mission Europa is a strategy designed to invest in players who embody this ambition and enable the European Union to position itself as a sustainable economic leader.”

The EdR SICAV Mission Europa fund is available for sale in France, Germany, Belgium, Austria, Italy, Luxembourg, Spain, Cyprus, Greece, and Switzerland.