Edmond de Rothschild Asset Management aims to offer investors exposure to M&A bid targets and restructuring/turnaround companies in the UK.
Edmond de Rothschild Asset Management has launched a UK equity fund to exploit mergers and acquisitions and restructuring activity.
The new fund, named Edmond de Rothschild Fund UK Synergy, will seek to capture upside on UK stocks that are possible bid targets as well as those that may benefit from restructuring opportunities, investing across a spectrum of around 600 UK stocks.
The fund will be run by Philippe Lecoq and Olivier Huet, who both believe UK stocks are now looking particularly attractive after several years of underperformance, the company said in a statement. The pair are part of a team of eight portfolio managers and one product specialist dedicated to European equities.
“Our existing Edmond de Rothschild Fund Europe Synergy strategy currently holds some 30 per cent 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,” said Lecoq.
“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.”
The fund, part of the Luxembourg-domiciled Edmond de Rothschild Fund UCITS umbrella, will track the FTSE All Share Index.
Edmond de Rothschild Asset Management had €53 billion ($59 billion) under management as of the end of 2015.