Equities fund
Dorval Manageurs Smid Cap Euro

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Returns / risks

Choosing to support medium sized companies in the euro zone in a responsible and committed fashion

Julien Goujon Portfolio manager – Financial analyst
Mathilde Guillemot-Costes Portfolio manager – financial analyst

Key points

  • Providing a response to the financial needs of companies in the euro zone
  • Active and unconstrained management, framed by a rigorous socially responsible investment policy
  • A fund eligible for the PEA
  • This product promotes environmental or social characteristics but does not have as its objective a sustainable investment. It might invest partially in assets that have a sustainable objective, for instance qualified as sustainable according to the EU classification
  • The fund is exposed to capital loss risk

Performance since creation

  • -

Performances net of management fees

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- -

INVESTMENT UNIVERSE

Eurozone small and midcap markets

BENCHMARK INDEX

MSCI EMU Mid Cap DNR (net dividends reinvested)

MINIMUM RECOMMENDED INVESTMENT HORIZON

5 years

The fund seeks to assist and support companies in the euro zone and to capture their growth potential over the long term. To this end, the fundamental analysis of eligible companies is combined with an approach to environmental, social and governance (ESG) opportunities and risks.

Providing a response to the financial needs of medium sized companies in the euro zone and capturing their growth potential

Among the securities of the euro zone, Dorval Manageurs Smid Cap Euro favours medium sized companies, with particular attention to company valuations, by focusing on securities that combine growth prospects together with a reasonable growth prospect. Moreover, given that performance meets expectations when the manager company combination is functioning, a complementary analysis is carried out, based on qualitative and quantitative criteria relating to the senior manager, the senior management team and the governance bodies.

Active and unconstrained management, framed by a rigorous socially responsible investment policy 

The construction and management of the portfolio combines a financial and extra financial approach and are based on:

  1. Identification of investment themes considered to have higher potential, i.e. favourable in both the major trends and in the economic and financial context.
  2. A selection of securities within these investment themes, supplemented by securities selected for their own interest and meeting the criteria defined by Dorval AM.
  3. A breakdown of these securities in the portfolio, based on a proprietary rating methodology established using the same criteria and moreover combining financial and extra financial analyses as well as an analysis of the ''senior managers/companies'' combination.

Information concerning the methodology and data relating to extra-financial analysis are available in the SRI policy and the Code of transparency of Dorval Asset Management available here.

A fund eligible for the PEA

Through the construction of its portfolio, Dorval Manageurs Smid Cap Euro is in line with the criteria of the Equity Savings Plan (PEA) by investing up to 75% minimum in French and European equities.

The fund management team ranks the company managers in 4 broad categories :

  • “Empire Builders”: genuine niche developers, they have the ability to identify one or more long-term growth opportunities.
  • “Rescuers”: they were given authority during a crisis. These managers are the heads of a pool of companies in turnaround situations.
  • “Familiy Heirs”: they have a family link with the Builder and take on the operational management of the company. They often start out with a poor image which is not always justified. They are often supported in their initiatives by an experienced manager.
  • “Homegrown Managers”: these executives started their career in the company they manage today. In most cases, they have more than 10 years’ experience in the company in a management position in an international context.
Recommended investment horizon: 5 years Class R Class N (C)
Asset management company Dorval Asset Management Dorval Asset Management
Legal structure French FCP in UCITS form French FCP in UCITS form
Reference index MSCI EMU Mid Cap (DNR) MSCI EMU Mid Cap (DNR)
Accounting currency EUR EUR
Inception 19/05/2017 13/12/2017
ISIN code FR0013247749 FR0013299195
Allocation of earnings Accumulation Accumulation
Eligibility Securities Account, Life Insurance, Equity Savings Plan Securities Account, Life Insurance, Equity Savings Plan
Subscription Yes Yes
Maximum sales charges 2% not retained by the Fund, 100% of which to be paid to the distributor 2% not retained by the Fund, 100% of which to be paid to the distributor
Exit charges None None
Operating charges 2 % 1,50 %
Outperformance fee 20% of the outperformance, if performance is positive, relative to its reference index, the MSCI EMU Mid Cap (net dividends reinvested). The Management Company
ensures that over a performance period of 5 years
maximum, any underperformance of the UCITS
compared to the benchmark index is compensated before
performance fees become due.
20% of the outperformance, if performance is positive, relative to its reference index, the MSCI EMU Mid Cap (net dividends reinvested). The Management Company
ensures that over a performance period of 5 years
maximum, any underperformance of the UCITS
compared to the benchmark index is compensated before
performance fees become due.
Subscription and redemption conditions One thousandth of a unit One thousandth of a unit
Minimum initial subscription One thousandth of a unit One thousandth of a unit
Original net asset value €100 €100
Valuation Daily Daily
Centralisation time 1:00 pm 1:00 pm
Risk scale 6 6

Alpha: outperformance of a fund relative to its reference index, expressed as a percentage. This is an indicator of the fund manager's ability to create value, excluding the market effect. The higher the alpha, the better the fund's performance relative to that of its reference index.

Beta: measurement of a fund's sensitivity to market movements (represented by its reference index). A beta of more than 1 indicates that the fund amplifies both upward and downward movements in its reference market. By contrast, a beta of less than 1 means that the fund tends to react less than its reference market.

Recovery period: time expressed in days that the fund takes to exceed the highest net asset value during the period indicated.

Exposure as a percentage of net assets: a fund's overall exposure takes into account the sum of its physical positions and off-balance sheet positions. As opposed to so-called "physical" positions (which in accounting terms are entered under the schedule of investments), off-balance sheet positions encompass positions taken on both financial futures and derivatives. Examples of derivatives include futures contracts, swaps and option contracts. A maximum off-balance sheet exposure limit is defined in the prospectus.

Gain frequency: calculated based on the history of the fund since its inception, showing the ratio of the number of positive observations to the total number of observations over the period.

Maximum recorded gain: all-time maximum gain recorded by the fund.

Director rating method: a rating based on ten criteria that assesses directors' intrinsic qualities and their ability to deliver superior long-term growth.

Maximum recorded loss: all-time maximum loss recorded by the fund.

"Developer" qualities: sector track record/experience and well-connected; knowledge of the competitive environment; strategic vision/ability to adapt the product range; sense of innovation; control of external growth.

"Manager" qualities: charisma/convincing, able to attract the right partner; staff management/respect and internal motivation; ability to deliver/focus on margins; respect for financial commitments/transparency; shareholder in the business/mutual interest.

Sharpe ratio: indicator of a product's outperformance relative to a risk-free rate, taking into account the risk taken (volatility of the product). The higher this is, the better the fund.

Volatility: amplitude in the variation of a share, fund, market or index over a given period. High volatility means that the price of the share varies significantly and therefore that the risk associated with the share is high.

Ratio 1 year 3 years 5 years
Sharpe ratio - - -
Beta - - -
Alpha - - -
Information Ratio - - -
Volatility -
Ratio Value Date
Maximum recorded gain -% from - to -
Maximum recorded loss -% from - to -
Recovery period - days
Gain frequency -% per month

The information provided is neither contractual in nature nor serves as investment advice.

Past performance is no indicator of future performance. Capital invested is not guaranteed. It is advisable to follow the minimum recommended investment horizon. The characteristics, risks and charges concerning this investment are detailed in the fund prospectus, which is available free of charge from the asset management company.

The tax treatment depends on each client's situation and is subject to change at a later date. Each mutual fund may not be suitable for all investors. The risks of investing in a mutual fund are described in the Prospectus for this mutual fund, which can be downloaded from this site. Dorval Asset Management invites the individuals concerned to familiarise themselves with it.

Dorval Asset Management may not be held liable for any decision taken or not taken based on information contained in this document, or for how it may be used by a third party.

The investor must be given the Key Investor Information Document before subscribing.

Pursuant to provisions in Council Regulation (EU) No 833/2014, the purchase of units/shares in Dorval Asset Management’s funds is prohibited for all Russian and Belarusian nationals, as well as any individuals who are resident in Russia or Belarus and any legal person, entity or body established in Russia or Belarus, apart from nationals of a Member State and individuals holding a temporary or permanent residence permit in a Member State.

Dorval Manageur Smid Cap Euro enables investors to benefit from the performance potential of financial markets in exchange for taking a certain amount of risk. The risks linked to the mutual fund are as follows: risk linked to exposure to small and mid caps, which can present a liquidity risk due to the potential limited size of their market, capital loss risk, equity market risk, foreign exchange risk, interest rate risk, credit risk and risk linked to the use of derivatives, futures or options. The fund is neither protected nor guaranteed. You may get back less than you invested.

This UCITS is subject to sustainability risks as defined in Article 2 (22) of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR Regulation”); these include any environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. The portfolio’s investment process includes the ESG approach outlined above in order to incorporate sustainability risks into the investment decision or process. 

The fund's minimum recommended investment horizon is five years; it is intended for investors prepared to tie up their capital for this period of time.

Please refer to the fund prospectus for additional details on risks. This is available for free on request from the asset management company or can be downloaded from this website.

Risk and reward profile*: 1 2 3 4 5 6 7

Risk scale from 1 (lowest risk) to 7 (highest risk). Risk 1 does not mean the investment is risk-free.

This fund is classified as "category 6" due to the discretionary management approach taken by DORVAL Asset Management, which focuses on high exposure to European Union equity markets and small caps.

The historical data used to calculate the synthetic indicator may not be a reliable indicator of the mutual fund's future risk profile.

The risk and reward category shown remains subject to change, meaning that the mutual fund's classification is liable to change over time.

The mutual fund is not capital guaranteed.

Has the pandemic crisis changed the outlook for small- and mid-caps? 

The pandemic crisis has put the human dimension resolutely at the heart of corporate strategies, as companies have had to adapt swiftly to protect their employees, safeguard their skills and further pursue their digitalization.

From a short-term perspective, small- and mid-caps should benefit from:

  • the reopening of economies;
  • the European €750 billion recovery plan;
  • political determination to breathe fresh life into the local economic fabric. 

From a more structural standpoint, small- and mid-caps have traditionally outperformed large-caps on the back of a twofold performance driver i.e. earnings growth outstrips the pace for large-caps, while as investors get to know the company, valuations are also buoyed.

 

The fund has carried the SRI accreditation since 2020, so does this mean that the investment process has changed?

"Mankind is the only true source of wealth", according to economist Jean Bodin, and we have built our Dorval Manageurs Smid Cap Euro fund on the same observation: performances are strong when the manager-company tandem works well. Our analysis had already focused on corporate governance, and we have now extended this approach to take on board environmental and social issues.

Over the long term, the assessment of environmental, social and governance criteria is set to become a third performance driver. Small- and mid-caps did not yet stand on a par with large-caps in this respect, but this is changing as both companies and investors take the full measure of this dimension. As the world seeks out responsible and sustainable solutions, supporting the development of French and European SMEs and mid-sized firms is now truly relevant.

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Do you need information?

Contact Gaëlle Guilloux

+33 (0)1 44 69 90 45 - +33 (0)6 78 43 94 09

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