Oddo BHF AM to apply 5% subscription fee to European small cap fund

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Paris-headquartered asset manager Oddo BHF AM has announced that it has decided to apply a 5% subscription fee to its Oddo Active Smaller Companies fund for all new subscriptions made after the fund’s assets will reach €580m.

The measure aims at ensuring the management team’s ability to sustainably deliver outperformance and the liquidity of the strategy, said the firm in a letter to shareholders of the Oddo Active Smaller Companies fund.

Also Oddo BHF AM said the fund prospectus has been amended following a reform of the German Investment Tax Act, which provides for a partial tax exemption for certain German residents, effective 1 January 2018.

These changes have been implemented on 6 October 2017.

The Oddo Active Smaller Companies fund is co-managed by Guillaume Chieusse, Elodie Lehmann and Yannig Pariset and was launched on 26 November 2013. At least 75% of the fund is invested in stocks issued by small and intermediate companies in Europe with the aim of outperforming the MSCI Europe Small Cap Hedged Euro (NR) index over a minimum investment period of five
years.

The fund size was €518.3m as of 30 September 2017. It is currently distributed in France, Germany, Sweden, Italy, Luxembourg, Austria and Switzerland.

The implementation of that subscription fee comes after a number of European small-mid cap funds have recently soft-closed following increase in net inflows.