Swiss asset manager EI Sturdza Investment Funds (EI Sturdza) will soft close its Strategic European Smaller Companies fund to new investors when assets under management will reach €230m.
The manager added existing investors will be able to continue subscribing for shares in the fund until its AuM hit the €250m threshold, set for the hard closure of the fund to all additional investments.
The announcement of a capacity cap for the Strategic European Smaller Companies fund follows a strong growth in AuM from €30m (at inception in May 2015) to €173m (as of September 2017).
The fund is available for sale in Switzerland, Austria, Germany, France, Italy, the UK and Spain.
EI Sturdza said the decision recognises the restrictive size and depth of the liquidity in the fund’s investment universe and the importance of acting in the best interests of its valued investors.
The Strategic European Smaller Companies fund, run by portfolio manager Bertrand Faure, blends a 360 degree private equity style fundamental analysis with a disciplined investment process.
Georges Gutmans, executive chairman, EI Sturdza Investment Funds commented: “We continue to gain market recognition for the strength of our European equity funds – and the performance and AUM growth of our Strategic European Smaller Companies fund is testament to this. Bertrand Faure has managed European equities since 2002 and thus offers our investors access to a wealth of proven experience in the sector.
“We are pleased to have reached this stage in the fund’s development and to have been able to bring this strategy to the market and to our valued investors.”
Bertrand Faure, portfolio manager of the EI Sturdza Strategic European Smaller Companies Fund said: “The decision to announce the capacity cap for the fund was taken as we believe this is in the best interests of our valued investors. We believe that the small and mid cap universe that we operate in offers greater opportunities, although it is also a fact that there is less liquidity and we need to be cognisant of that fact.
“The European small and mid-cap markets continue to offer diverse opportunities in what remains a structurally under-researched market. There are many companies that are off the beaten track, with management that are happy to provide access to investors who are taking an interest in their businesses.
“We remain committed to and confident that we will be able to deliver our investment objective to our investors over the long term; to outperform small and medium capitalisation firms in the European equity markets.”
EI Sturdza managed over $3bn (€2.54bn) in assets across its product range as of the end of August 2017.