Turgot Asset Management, based in Paris, is to merge its Turgot Multicaps Europe fund into its global equity strategy dedicated to the LGBT community, Turgot Rainbow, InvestmentEurope has learned.
According to a shareholder note, the operation will take place on 10 January 2018 and aims to rationalise the boutique’s fund range as assets under management of the Turgot Multicaps Europe fund plummeted to €3.32m as of mid-November 2017.
The fund merger has been approved by French regulator AMF on 24 November 2017.
The Rainbow Fund, which had around €3.22m of AUM as at mid-November 2017 and managed by Christophe Deschamps, invests globally with a focus on companies that either sell identifiable good/services to the LGBT community or have implemented anti-discriminatory norms, especially towards the LGBT community.
It seeks to outperform the following composite benchmark, 40% CAC 40 + 40% Eurostoxx 50 + 10% S&P 500 + 10% Eonia capitalised, over a 5-year horizon.
Following the fund merger, the maximum exposure to equity markets will be trimmed to 110% of the Rainbow fund’s net assets from 130%.