For the last investment of the Actions II sub-fund, France’s national acceleration and seeding fund Emergence selects Gestion 21 and allocates €50 million to its European Equity fund 'Actions 21', which is characterized by a strong Value style.
Emergence and NewAlpha Asset Management, sub-manager of the SICAV, announce the sixth investment of the Emergence Actions II sub-fund1 in the Actions 212 fund managed by Gestion 213.
Actions 21 is a Value, conviction-based investment fund4 that focuses on listed companies, mostly French, and whose price relative to sector is significantly undervalued. Investment choices focus on 30 to 40 stocks of all sizes and are based on a detailed financial and sector analysis using a proprietary database and indicators, documented, and produced in-house. These investments are made with a long-term perspective and based on active, non-benchmarked management. Since 1 January 2020, the selection criteria have systematically included a structured ESG approach.
With the contribution of Emergence, the AUM of Actions 21 increases from €20 million to €70 million.
Daniel Tondu, Founder and CEO of Gestion 21, said: "We are very proud and optimistic about this partnership with Emergence. It demonstrates the attractiveness of a high conviction Value fund that we will be able to offer to new investors. The integration of financial analysis of sectors and companies is today a condition of success for conviction managers, given recent regulatory changes. This recognition, the critical size of this investment and the resulting visibility allow us to expect our assets to double rapidly and to target a fund size of €350 million within 5 years.”
Gestion 21 is an entrepreneurial asset manager, created in 2007 by Daniel Tondu and Laurent Gauville, specializing in two equity strategies: listed real estate and all caps Value stocks. With €360 million in assets under management as of end May 2020, it has 12 employees and serves a French clientele made up of institutional investors, IFAs, private banking and funds of funds allocators.
“Gestion 21 and its Equities 21 fund have strong points that convinced investors in the SICAV," said Antoine Rolland, CEO of NewAlpha, who added "at the company level, we appreciated the stability and cohesion of an excellent management team focused on long-established expertise in equity financial analysis. The investment process is solid and consistent with the ‘Value’ approach. We also highlighted the opportunity offered today by the historical discount of the ‘Value’ style, a portfolio management style on which the team has long experience and on which it differentiates positively from its competitors.”
benchmark index is the CAC All Tradable net dividends reinvested 7 8, and until 29 May 2020, the Fund's performance stands at -26.83%, compared with +3.03% for the index.
Actions 21 is a Value style fund that can also be compared to the Value indices commonly observed by institutional investors: since its launch, the fund has achieved +14.30% compared to -20.18% for the MSCI EMU Value Net Return9 and -6.12% for the MSCI Europe Value Total Return10.
Laurent Deborde, President of Emergence says "By selecting Actions 21, Emergence underlines the interest of its investor base for an investment approach that is attentive to the valuation of securities through an in-depth financial analysis of companies. These strategies may experience short-term performance jolts but are consistent with the long-term horizon of institutional investors.’’
Gestion 21 is the twenty-first acceleration partnership concluded in eight years by Emergence through its three sub-funds, Actions I, Actions II and Performance Absolue. The managers selected and now partners of Emergence have seen their assets under management double on average in the three years since the SICAV's investment. Today, they manage nearly 11 billion euros, of which nearly 30% comes from international investors.
As with previous investments made with French entrepreneurial asset management companies, the partnership between Emergence and Gestion 21 provides institutional investors in the Emergence SICAV with the potential performance of the selected fund, in addition to participation in its development via a revenue-sharing mechanism.
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 business location.
The figures quoted relate to past years and past performance is not a reliable indicator of future performance.
The main risks associated with the UCITS Actions 21 are: risk of capital loss, equity market risk and liquidity risk.
1 Launched on 15 June 2017, Emergence Equities II is a specialized professional fund closed to all subscriptions
2 The I Share of the Equities 21 fund was launched on 27 November 2007 with the code FR0010539197
3 Gestion 21 is approved by the AMF under number GP 07000020
4 Classification Eurozone Equity Net Performances. Source Bloomberg. Past performance is no guarantee of future performance
5 Net returns. Source Bloomberg. Past performance is no guarantee of future performance
6 CAC 40 net dividends reinvested, Bloomberg code CACR