Edmond de Rothschild Fund UK Synergy

Investing in UK companies with a strategic focus

Investing in UK companies with a strategic focus

Building on more than 10 years’ of experience in M&A equity strategies, Edmond de Rothschild Asset Management is launching Edmond de Rothschild Fund UK Synergy, a concentrated UK equity fund.

Edmond de Rothschild Fund UK Synergy capitalises on key corporate events like takeovers and restructurings in the UK equity market

  • A robust UK economy

    The UK has consistently underperformed the rest of Europe since 2012 and as a result now offers attractively valued companies, especially as growth is accelerating. The UK grew 2.9% in 2014 (unseating France as the world's 5th largest economy power) and posted growth of 2.2% in 20151. The country still offers genuine investment opportunities even if worries over a possible Brexit could make the market volatile up to the referendum on June 23.

  • A favourable climate for M&A

    ​A bumper 2015 saw global M&A deals hit a record high of USD 4,600bn2, primarily due to a 54% rise in mega deals.  The UK is Europe's most active market and offers numerous opportunities thanks to:

    - Lower regulatory constraints than in continental Europe

    - More open shareholding structures

    - Strong corporate governance which protects minority shareholder interests

  • Our investment strategy is particularly well adapted to this situation

    ​Edmond de Rothschild Asset Management is launching Edmond de Rothschild Fund UK Synergy to benefit from today's favourable environment for UK stocks and capitalise on our long experience in special situation strategies.

    The fund managers deploy strategies which capitalises on key corporate events like takeovers and restructuring, helping the fund seeks to benefit from several sources of performance throughout an economic cycle:
    - Mergers & Acquisitions where the objective is to capture increases in the target's share price and the premium offered by the bidder
    - Restructuring and transformation situations where the objective is to select companies undergoing a restructuring or transformation to unlock shareholder value

Upside on the UK’s dynamic M&A market provides our strategy with numerous opportunities Philippe Lecoq Lead manager
Co-Head of European Equity Management
le-coq-philippe-240x273
1 Source : INSEE. April 2016
2 Source: Thomson Reuters- January 2016
3 The fund managers may change during the product’s life

  • €1.4 bn under management in European Equity special situation strategies*
  • 10 years of experience managing special situation strategies
  • +1.75 % in annualised outperformance compared to the MSCI Europe NR in the last 10 years**
  • 8 portfolio managers with 15 years’ experience on average
/
* at end of March 2016
** ‘A’ share performance of the sub fund Edmond de Rothschild Fund Europe Synergy. Performance since inception (05/12/2006): 42.05% versus 21.19% for the MSCI Europe (NR) at end of March 2016

Edmond de Rothschild Fund UK Synergy

  • An equity fund that seeks to capture upside potential on UK stocks that are possible bid targets and/or undergoing restructuring
  • Complementary source of performance in different market phases
  • A specialised investment team with more than 10 years of experience in European special situations which managed € 1.4 bn4
  • A concentrated, stock-picking UK equity portfolio subject to capital loss risk
4 As of end of March 2016
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The Fund Center provides extensive information about the ranges of Edmond de Rothschild Group funds:

  • Investment objectives
  • Performance data
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Main potential risks:
The Subfund is a category 6 (L, N and LP shares) or high risk/return Subfund profile which reflects its ability to be up to 110% exposed to equity markets. The risks described below are not exhaustive: it is the responsibility of investors to analyse each investment’s risk and to come to their own opinion.
Capital loss risk, equity risk, discretionary management risk, risk from investing in small and mid caps, exchange rate risk.

January 2016. Non-binding document. This document is for information only.
Disclaimer: The data, comments and analysis in this bulletin reflect the opinion of Edmond de Rothschild Asset Management (France) and its affiliates with respect to the markets and their trends, their regulation and tax treatment, on the basis of its own expertise, economic analysis and information currently known to it. However, they shall not under any circumstances be construed as comprising any sort of undertaking or guarantee whatsoever on the part of Edmond de Rothschild Asset Management (France). Potential investors should consult their service provider or advisor and exercise their own judgement independently of Edmond de Rothschild Asset Management (France) on the risks inherent to each investment and its suitability to their own personal and financial circumstances. To this end, investors must acquaint themselves with the key investor information document (KIID) or fund prospectus that is provided before any subscription and available at www.edmond-derothschild.eu tab “Fund Centre” or on request from the head offices of Edmond de Rothschild Asset Management (France) and Edmond de Rothschild Asset Management (Luxembourg).

GLOBAL DISTRIBUTOR
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré, 75401 Paris Cedex 08
Société anonyme governed by an executive board and a supervisory board with capital of 11,033,769 euros
AMF Registration No. GP 04000015 - 332.652.536 R.C.S. Paris
MANAGEMENT COMPANY
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (LUXEMBOURG)
20, Boulevard Emmanuel Servais, L – 2535 Luxembourg
SUB INVESTMENT MANAGER
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré, 75401 Paris Cedex 08

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EDMOND DE ROTHSCHILD ASSET MANAGEMENT (UK)
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