Invest in listed French and European SMEs with the tax benefits of an equity savings plan.
- An equity fund mainly invested in Eurozone small and midcaps
- An original approach based on selecting corporate directors according to their potential for value creation
- The tax benefits of the equity savings plan tax
- The fund is exposed to a risk of capital loss
Performance since creation
Performances net of management fees
Eurozone small and midcap markets
MSCI EMU Mid Cap DNR (net dividends reinvested)
MINIMUM RECOMMENDED INVESTMENT HORIZON
Seeks to take advantage of the momentum of European small and midcaps
Eligible for the equity savings plan, Dorval Managers Smid Cap Euro will invest at least 75% of its net assets in stocks with a market cap under 5 billion euros offering strong potential according to Dorval Asset Management's criteria. The latest addition to Dorval Asset Management's "Manageurs" range, it benefits from the experience that the portfolio team has already gained in selecting high-quality managers in the search for the best "manager-company" combinations. These are managers with the greatest ability to secure long-term, regular growth in their company's profits. As such, the fund aims to outperform the representative index of Eurozone small and midcaps.
Extracting growth from the search for the best "manager-company" combinations according to Dorval AM
The management team is convinced that a company's value lies in the "manager-company". The assessment method for executives is based on the analysis of their professional experience, their managerial profile and through regular direct contact. The managers assess the executives using 9 criteria that measure their intrinsic qualities as well as their ability to deliver a growth surplus over time. These criteria are based on two concepts: “developer” and “manager”. In addition, extra-financial environmental, social and governance (ESG) criteria are also included in this assessment.
The list of assessment criteria according to “developer” and “manager” type is show below:
Quality of a developer
Quality of a manager
Business skills/experience and contact network
Charisma/ability to convince and gain support from others
Knowledge of the competitive environment
Ability to deliver/margin culture
Strategic foresight/ability to adapt
Respect for financial commitments/transparency
Control of external growth
Participation in the capital/convergence of interests
Environmental, social and governance (ESG) criteria
Source: Dorval Asset Management
An investment process based on four pillars: the 4Ts
Dorval Manageurs Smid Cap Euro is based on a conviction investment approach, aiming to outperform its benchmark index over the recommended investment period. Invested in Eurozone small and midcaps, the portfolio targets companies showing a history of results. These are growth companies generally at a key stage of their development either in terms of international expansion or external growth. They are also potential takeover targets, which adds a potential catalyst to their stock market performance.
The management team has developed and implemented a rigorous management process based on four pillars.
This process also incorporates a criterion for picking companies based on the contribution of their directors to the creation of value.
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)|
|Allocation of earnings||Accumulation||Accumulation|
|Eligibility||Securities Account, Life Insurance, Equity Savings Plan||Securities Account, Life Insurance, Equity Savings Plan|
|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|
|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)||20% of the outperformance, if performance is positive, relative to its reference index, the MSCI EMU Mid Cap (net dividends reinvested)|
|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|
|Centralisation time||1:00 pm||1:00 pm|
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|
|Maximum recorded gain||-%||from - to -|
|Maximum recorded loss||-%||from - to -|
|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.
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.
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.
What is the reason behind the managerial skills theme?
The economist Jean Bodin wrote that "The only wealth is man".
When devising the Dorval Manageurs SMID Cap Euro fund, we set out on the following premise: when the "manager-company" combination works, performances are never far behind. Our job is therefore to identify companies whose directors have managerial skills that align with the company's strategy. This expertise is particularly important because the small and mid cap universe is where quality of management is the most decisive for the success of an investment."
How do you ascertain managerial skill?
"To determine directors' qualities we look in particular at their experience, their team, their track record on external growth, etc.
Stock-picking is more than just a theoretical analysis, it involves systematic and regular meetings with the directors of these companies."