Evolution of subscription conditions for Echiquier Entrepreneurs

From the 30th of June 2020, new subscription conditions will be applied to Echiquier Entrepreneurs.

Evolution of subscription conditions for Echiquier Entrepreneurs

The funds Echiquier Entrepreneurs, a sub-fund of the SICAV under French law Echiquier, managed by Financière de l’Echiquier, eligible for PEA-PME, reached an outstanding amount of 522 million euros on the 25th of June 2020.

This fund, which is emblematic of LFDE’s stock picking and conviction management know-how in small European stocks, is based on an in-depth knowledge of the companies as well as those who lead them. Since its creation in October 2013, it has experienced a significant increase in its outstanding (annualized performance of + 13.3%, compared with 6.9% for its benchmark index).

The Board of Directors of the SICAV has met to decide on an appropriate mechanism to limit the subscriptions of this fund given the nature of the underlying assets (small and mid-caps) and thus protect the interests of the shareholders while by optimizing the fund’s capacity.

The Board of Directors has thus approved the following system, which will come into force on the 1st of September next:

  • As soon as the sub-fund’s NAV exceed 600 million euros in 3 consecutive net asset values (NAV), a subscription fee paid to the fundTS of 5% will be systematically charged.

The management company may, however, waive the application of these fees in the following cases:

  • subscriptions of shareholders who can attest to an existing position in the fundTS
  • scheduled life insurance payments or equivalent
  • arbitrage between two classes of shares carried out by the same investor if the redemption and the subscription are of the same amount,
  • redemption followed by a subscription of the same amount in the same share class and on the same net asset value.
  • Should the fund’s NAV fall below the 500 million euros threshold for more than 3 consecutive NAVs, this mechanism will be suspended.

This system is scalable according to the size of the outstanding amount and enables optimal management on a sustainable basis.

Pending the implementation of this system, that is until the 31st of August 2020, no subscription fee will be paid to the sub-fund.

The prospectus containing this development (dated 30th June 2020) is available on the website.

La Financière de l’Échiquier’s small and mid-cap management team is composed of three managers and two analysts.

This experienced team applies the same investment discipline to the other fundTS it manages, including Echiquier Agenor Mid Cap Europe and Echiquier Agenor Euro Mid Cap, recently labeled SRI, and Echiquier Excelsior.

The strategy’s total outstanding amount to approximately 3.2 billion euros.