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French boutique unveils eurozone recovery fund for veteran duo

French boutique unveils eurozone recovery fund for veteran duo

DNCA Finance has launched an equity fund targeting eurozone recovery stories for veteran duo Isaac Chebar and Jean-Charles Mériaux, Citywire Global can reveal.

The DNCA €urocovery fund was formally launched in December as a France-domiciled equity strategy.

It will invest at least 60% of its assets into stocks which are viewed as prime beneficiaries from an improving economic outlook across the eurozone region.

Chebar, who is Citywire AAA-rated, and Mériaux, as well as analyst Adrien La Clainche, will invest with a deep value focus but without sector or country biases.

Up to 10% of the fund’s net asset value can be invested in companies outside of the eurozone, including emerging markets, while up to half of the fund can be exposed to stocks with a market cap of €1 billion or less.

The objective of the fund is to outperform the Euro Stoxx Net Return, which is the fund’s reference index. Investors are expected to approach the fund with a five-year investment horizon.

Development of the DNCA €urocovery fund marks the second strategy by the Paris-based asset manager to target the eurozone recovery.

This follows the decision taken last summer to overhaul its existing Italian Opportunities fund to be a broader Southern Europe equity fund.

The DNCA Invest South European Opportunities fund, as it is now known, is one of three European equity funds run by Chebar.

Meanwhile, Mériaux, who is also chief executive officer of the group, runs the Centifolia, DNCA Invest Eurose, Eurose, and DNCA Invest Convertibles funds. These cover French equities, mixed assets and convertible bonds.

Since the inception of the DNCA €urocovery fund, DNCA has been the subject of a formal approach from investment firm Natixis, which made a bid for the group in mid-February.

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