Emergence, the Paris financial centre investment fund for the acceleration of independent asset management companies, is announcing the fifth and last investment for its Emergence Europe sub-fund by allocating €33 million to Norron Sustainable Equity, a fund managed by Norron Asset Management, a Swedish investment manager . With this choice, Emergence is supporting an asset management company with a strong commitment to sustainable investment and with in-depth expertise in Nordic equities.
Paris, 11 July 2023 – Emergence and NewAlpha Asset Management, the delegated asset manager of the SICAV, announce the fifth investment for the Emergence Europe sub-fund¹ in Norron Sustainable Equity², managed by Norron Asset Management³.
Created at the end of September 2020, Norron Sustainable Equity is an equity fund that invests primarily in companies listed on the Nordic markets (Sweden, Norway, Finland, and Denmark) with the objective of targeting or facilitating the sustainable transition. It is one of a few funds with a Nordic equity strategy classified as Article 9, according to the European SFDR regulation.
Based on a bottom-up, conviction-based investment strategy, Norron Sustainable Equity favours companies with high growth potential, regardless of their market capitalisation, and which demonstrate good alignment with the Sustainable Development Goals and European taxonomy.
Approximately 45 stocks are selected through a rigorous process of fundamental financial analysis and ESG qualitative criteria and must contribute to at least one of the following four sustainable objectives: healthy and prosperous society, innovative and sustainable solutions, climate and environment and sustainable cities and infrastructure. These objectives contribute to the United Nations Sustainable Development Goals. The industrial, technology and healthcare sectors are generally the most represented in the allocation.
Thanks to the contribution of Emergence, Norron Sustainable Equity reached approximately €85 million at mid-June 2023.
Norron Asset Management is a Nordic market specialist which began operating in 2010. Regulated by the Swedish Financial Supervisory Authority, the investment manager is 58% owned by its employees and its two highly experienced investment founders, each of whom has nearly 30 years of practical experience in the Nordic capital markets.
The remaining capital (42%) is owned by Aker ASA, the oldest Norwegian industrial company still in operation and a financial investor, present since the creation of Norron AB. Its range is made up of six funds: two absolute return funds, two fixed income and finally two listed equity funds, representing a total of approximately €900 million in assets under management at mid-June 2023.
Norron AB has won numerous regional and international awards recognising the quality of its management. With offices in Stockholm and Oslo the firm benefits from close proximity and in-depth knowledge of distribution networks in the Nordic countries. It employs 14 professionals, of which nine people in the investment team.
Alexander Zetterquist, CEO at Norron Asset Management, says:
“Norron is an entrepreneurial and fundamental Nordic active fund manager seeking to generate long term alpha within equities and fixed income. The fact that Emergence has decided to invest in Norron Sustainable Equity is an important international recognition of the management expertise in this fund in particular and of Norron’s fund management expertise in general. Emergence’s decision to invest in this fund is highly appreciated because it proves that Norron’s active and fundamental fund management skills are internationally competitive.”
“Norron has put in place a highly effective collective decision-making and management process that ensures that every investment case is thoroughly challenged by the whole team, including the ESG referent,” says Philippe Paquet, Managing Partner of NewAlpha AM.
“With an extensive experience and in-depth understanding of the Nordic equity markets, Norron Sustainable Equity strategy is at the forefront of ESG integration, which is the cornerstone of its investment process. Based on the UN Sustainability Development Goals, the sustainable approach intends to contribute to four environmental and social themes and the accelerated fund is classified Article 9 under SFDR. Finally, Norron’s commitment to climate change mitigation has been validated by the Science Based Target Initiative. Being one of the first Swedish asset managers to join SBTi, this demonstrates their ambition to reduce their emissions in line with the Paris Agreement goals.”
“This fifth and last investment by the Europe sub-fund confirms the role of Emergence as a discoverer of off-the-beaten-track entrepreneurial management talent. It also highlights the desire of the SICAV’s investors to focus on expert funds that apply advanced practices in terms of extra-financial analysis,” concludes Arezki Sehad (MAIF) Chairman of the Emergence Europe Investment Committee.
The investment in Norron Sustainable Equity is the second investment by Emergence in a European asset management company outside France since its creation in 2012.
DISCLAIMER – This press release is intended for French professional investors only, within the meaning of the Markets in Financial Instruments Directive. Issued jointly by New Alpha Asset Management, whose registered office is located at 128, boulevard Raspail, 75006 Paris, France, and the Emergence SICAV fund, whose registered office is located at 28 place de la Bourse, 75002 Paris, France. The information contained herein shall not under any circumstances be interpreted as an offer or invitation to invest, investment advisory or a recommendation for specific investments. New Alpha Asset Management is a portfolio management company authorised by the AMF under number GP05000001 as of 20 January 2005. References to prior rankings and awards are no guarantee of future rankings or awards. Depending on the date of publication, the information presented may differ from the updated data.
¹ Launched on 28 February 2021, Emergence Europe is a specialised professional fund (FPS) that is closed to investors.
² Norron Sustainable Equity is authorised by the Commission de Surveillance du Secteur Financier (CSSF) and was launched on 1 October 2020. Norron SICAV – Sustainable Equity – HIC EUR has ISIN code: LU1982817279.
³ Norron Asset Management, an investment manager with total equity of SEK 30 million (EUR 2,7 million) as of 31/12/2022, registered with The Swedish Companies Registration Office under number 556812-4209, located at Oxtorgsgatan 4, SE-111 57 Stockholm, is authorised by Swedish Financial Supervisory Authority under number 35241.
