Paris based Groupama Asset Management has launched the G Fund-European Small and Mid Cap fund.
The strategy invests in European listed small and mid caps benefitting from strong structural advantages.
The fund, managed by Cyrille Carrière who is also the fund manager of Groupama Avenir Euro, aims to outperform the MSCI Europe Small Cap Euro Net Return.
Carrière said the stock selection targets companies being positioned on niche markets with high potential that can take a new dimension in a few years.
Total expense ratio of the fund is 1.10%.
The asset manager keeps a positive stance on European equities, considering that over a mid term period companies that focus on niche markets, in particular small and mid caps companies, should evolve in a positive way, explained Gaëlle Malléjac, head of Active Management Investments at Groupama AM.
The other European equities fund of the firm, Groupama Avenir Euro, has outperformed its benchmark, the MSCI EMU Small Caps, by 117.8% over a 10-year period from December 2005 to December 2015.
It has had net cumulative performances of + 184,7% over that same period.
Groupama AM had €91bn in assets under management as at end December 2015.