For its 20th investment, the incubation and acceleration marketplace fund backed by 15 major French institutional investors, is allocating €55 million to Sélection Action Rendement, a fund managed by Dôm Finance. This is the first investment manager supported by Emergence whose assets under management exceed €1 billion.
Paris, 27 February 2020 – Emergence and NewAlpha Asset Management, investment manager of the SICAV, announce the fifth investment of the Emergence Actions II sub-fund2 in the fund3 managed by Dôm Finance4 .
Sélection Action Rendement is an equity fund5 whose objective is to seek growth in its assets by investing in high yielding, low-volatility European stocks. The companies selected must also offer favourable long-term growth prospects and have a market price below the enterprise value. The fund’s portfolio is concentrated on an average of 25 to 35 stocks, with a focus on large-cap stocks.
Since launch on 11 June 2004, the C share of the fund has generated an annualised performance of +4.48% compared with +4.77% for the index DJ STOXX 50 net dividends reinvested6 7 , used for comparison only. Created on 1st January 2020, the I share of the fund would have achieved an annualised performance8 of +5.63% over the same period.
This conviction-based management strategy is implemented by Philippe Joly, the fund’s historical portfolio manager since its creation in 2004. With the contribution of Emergence, Sélection Action Rendement’s assets under management have passed the €100 million mark, reaching €110 million on 31 January 2020.
Vincent Priou, Chairman and CEO of Dôm Finance declares: “While our development since inception has been essentially based on our fixed income and diversified strategies, the significant €55 million seed money provided by Emergence will accelerate the development of our equity business. Building on this momentum, we plan to triple the assets under management of the Selection Action Rendement fund within three years, from €110 million to €350 million, drawing on the experience of our portfolio management team and the fund’s 15-year track record.”
“For this investment opportunity, we appreciated the experience and stability of the portfolio management team, the quality of the stock picking and the solid track record of long-term performance within the framework of a conviction-based investment management without benchmarking constraints”, says Antoine Rolland, Chairman of NewAlpha Asset Management, who adds “since the acquisition of Diamant Bleu Gestion in 2019, Dôm Finance has embarked on a new growth trajectory, notably around its newly consolidated range of equity funds, whose development potential seems clearly promising.”
As with previous investments made with French boutique investment managers, the partnership between Emergence and Dôm Finance provides the institutional investors of the SICAV Emergence with the potential performance of the selected fund, in addition to participating in its development through a revenue sharing mechanism.
Dôm Finance is the twentieth acceleration partnership concluded in eight years by Emergence through its three sub-funds Equities I, Equities II and Absolute Performance. The investment managers selected and now partners of Emergence have seen their assets under management multiplied by 4 following the SICAV’s investments. They now manage in excess of €8 billion9 of which more than 50% comes from international investors.
Emergence contributes to strengthening the reputation in France and internationally of accelerated entrepreneurial managers and to increasing the attractiveness of the Paris financial centre in the European competition for the location of asset management activities.
Laurent Deborde, President of Emergence since January 2020, concludes “For its twentieth investment, Emergence has selected a dynamic manager that is experiencing very strong acceleration, with over €1 billion in assets under management, confirming its vocation to support the most promising players in French asset management industry.”
The figures quoted relate to past years and past performance is not a reliable indicator of future performance.
SICAV Emergence is the first incubation and acceleration fund in the Paris financial market. Its objective is to accelerate the most promising and innovative young entrepreneurial asset management companies, based in France or coming to set up in France, and to entrust them with capital to manage (seed money) essential to their growth and international development. Emergence invests for at least 4 years in one of their funds, selected to help them pass the €100 million mark in assets under management and to ease institutional and regulatory constraints.
Since its creation in early 2012, nearly €800 million have been mobilised by SICAV Emergence and made available to 18 management companies to accelerate 20 funds through its three sub-funds, with NewAlpha Asset Management as investment manager: Absolute Performance (€250 million), Equities I (€200 million), Equities II (€320 million).
Émergence brings together 15 major institutional investors who act together as true acceleration partners of these high-potential entrepreneurial asset management companies. (EDF, Caisse des Dépôts, Aviva, Cardif, Macif, CNP Assurances, UMR, Neuflize Vie, Groupe des Assurances du Crédit Mutuel, Maif, AG2R La Mondiale, Malakoff Mederic-Humanis, Prepar-Vie Assurance, Orano, Matmut).
With the launch of Émergence, the French asset management industry, number two in Europe in terms of assets under management (€4,000 billion at the end of 2018), and recognised for its expertise, capacity for innovation and entrepreneurial dynamism, has adopted an innovative model for associating institutional investors with a fund that will enhance the attractiveness of the Paris financial centre in the European competition for the location of asset management activities.
ABOUT NEWALPHA ASSET MANAGEMENT
NewAlpha Asset Management is an asset manager specializing in the detection, investment and support of rapidly growing entrepreneurial companies.
NewAlpha offers its institutional, French and international investor clients investment solutions in three activities: European equities, Absolute Return strategies and Private Equity.
In its first two businesses, NewAlpha has been analyzing, selecting and supporting innovative investment funds around the world for 10 years. NewAlpha has thus concluded 90 strategic partnerships and invested more than €2 billion with French and international investment management firms. NewAlpha is the investment manager since 2012 of the SICAV Emergence, the Paris financial marketplace fund dedicated to the acceleration of entrepreneurial asset management companies.
Since 2016, NewAlpha has been developing a Private Equity activity in Venture Capital and Growth Equity. Within this third business, NewAlpha sources, analyzes and invests in capital in fast-growing companies characterized by major technological changes: Fintech, Proptech, Health, TMT, etc.
NewAlpha manages and advises €2.2 billion as of 31 December 2019.
As a subsidiary of La Française, NewAlpha Asset Management is regulated by the Autorité des Marchés Financiers (AMF). La Française is controlled by the Caisse Fédérale du CMNE and forms one of the CMNE’s three business lines, Asset Management, the others being Banking and Insurance.
For more information: www.newalpha.com
This press release is intended solely for professional investors in France, in the meaning of the MiFID Directive.
Published jointly by NewAlpha Asset Management, registered office 128, boulevard Raspail, 75006 Paris, France, and the Émergence SICAV, registered office 28 place de la Bourse, 75002 Paris, France.
The content of this press release does not constitute an offer or solicitation to invest, nor investment advice nor a recommendation to make any specific investment.
NewAlpha Asset Management was authorised as a portfolio management company by the AMF with no. GP05000001 on 20 January 2005.
References to past rankings and awards offer no guide to future rankings or awards. Depending on the date of publication the information presented may vary from current data.
Dôm Finance was authorised as an investment management company by the AMF with no. GP04000059 on 28 October 2004.
Data source: Bloomberg
Legal documentation can be found at:
1 The Émergence SICAV sub-funds are not marketable outside of France and are closed to new investments.
2 Launched on 15 June 2017, Emergence Actions II is a specialized professional fund (SPF) closed to all subscriptions.
3 Sélection Action Rendement was launched on 11 June 2004 with ISIN code FR0010083634.
4 Dôm Finance is approved by the AMF under number GP04000059.
5 Category International Equity, invested in equities for a minimum of 75% of its net assets.
6 Bloomberg code: SX5R
7 The annual returns are +16.62% in 2015, -1.68% in 2016, +6.46% in 2017, -8.76% in 2018 and +25.12% in 2019 compared to +6.52% in 2015, +0.65% in 2016, +9.0% in 2017, -10.21% in 2018 and +27.36% in 2019 for DJ STOXX 50 net dividends reinvested. Source Dôm Finance 31 January 2020.
8 Management fee for the I share of the Sélection Action Rendement (FR0010083634): 1.20% (incl. tax) – Performance fee: 12% (incl. tax) of the annual performance above 7% – Turnover fee: nil