Gemway Assets expands its Italian footprint with Allfunds deal

Eugenia Jiménez
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Gemway Assets expands its Italian footprint with Allfunds deal

Paris-based emerging markets investment boutique Gemway Assets continues expanding its footprint in Italy with the registration of its emerging markets' funds trio on the Allfunds platform.  

Stefano Franchi, Gemway Assets' head of business development for Italy, said: "Allfunds is a key platform in Italy. Being present and visible is mandatory for the clientele we are targeting. This marks an important step in our development on the italian market.

"Our main targets in the local market are institutional clients and high-class retail clientele."

Allfunds is a key platform in Italy. Being present and visible is mandatory for the clientele we are targeting. This marks an important step in our development on the italian market."

The registration comes just a month after Gemway announced the registration of its entire funds range in the southern European country.

The French manager disembarked in Italy in January 2020 further expanding its international scope. The firm, with some €770m in assets under management as of January, has counted with international presence since inception. Indeed, over half of the firm's assets (52%) are held by foreign clients from countries such as Luxembourg, Monaco, Switzerland, Israel, Belgium and Austria.

Co-founded by Bruno Vanier and Michel Audeban in France in 2012, Gemway is regulated by the Autorité des Marchés Financiers (AMF) and specialises in emerging markets' companies that can generate sustainable and growing free cash flows.

Last year, in an interview with InvestmentEurope, Michel Audeban, Gemway's co-founder and managing director, revealed the company's plans to enter the Italian market.

With regards to the firm's investment objective, Audeban said: "Our major focus is to invest in companies benefiting from rising purchasing power in emerging markets.

"Our clients are institutional asset managers, private banks and family offices. In each country we focus on a limited number of clients.

He also advanced the firm's plans of creating a French Sicav that was aimed at improving efficiency when expanding internationally.

FUNDS OFFERING

Gemway offers three emerging markets' strategies to its clients in Europe - GemEquity, GemAsia, and GemChina - which from January, are also available to Italian investors.  

GemEquity fund is a global emerging markets equity strategy, that with seven years' track record, has €700m of assets under management.

GemAsia is anactive fund targeting long-term performance through exposure to securities primarily issued in Asia excluding Japan area. The fund manages over €50m in assets and was launched in December 2017.

The third vehicle, GemChina, is an equity fund based on China's investments, whose assets under management achieved €27m in January  just around three months after launch.

The three funds are distributed directly by the firm in Switzerland, Luxembourg, Belgium, and Monaco, while in the other countries where they are sold, it is made through third party managers.

Stefano Franchi, Gemway Assets' head of business development for Italy, said: "For the time being, only the institutional share classes will be available for subscriptions in Italy.

"But the retail share classes will be open very soon too."

The company is not planning to open an office in Italy soon since its primary focus now is to gain assets in the country and sign retail agreements. 

Franchi outlined: "We prefer focusing on gaining clients' loyalty by presenting them our investment philosophy, consisting on the development and rising purchasing power of the middle class in emerging countries, and on entering into partnership agreements that will last on the long term.

"Concerning whether or not there are plans to expand our teams, the answer is yes but for now, we are mostly expanding support function teams. For example, we are recruiting another person in the middle office to help on DDQs, on tenders, etc.

"We will also surely recruit in the management team for placing orders among other tasks. Indeed there is an increasing appetite for our funds in Europe."

Eugenia Jiménez
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Eugenia Jiménez

Eugenia Jiménez speaks Spanish and is Iberia Correspondent for Investment Europe covering Spain & Portugal, as well as Italy.