A promising mid cap fund from Eiffel IG | Photo credit: Shutterstock
After an incubation phase of more than two years, Eiffel Investment Group markets Eiffel Nova Midcap (Isin code: FR0013428653), European midcap funds. Management is comparable to that of Eiffel Nova Europe SRI, with the exception of non-eligibility for PEA-PME. Emphasis is therefore placed on innovative companies and the investment process takes ESG criteria into account. The absence of the PEA-PME constraint makes it possible to focus on larger companies.
Thus, the five main positions are the German specialist in visualization software for construction Nemetschek, the British pharmaceutical company Dechra Pharmaceuticals, BioMérieux, the Italian company specializing in the production of high and very high pressure water pumps Interpump Group and SES-Imagotag. Geographically, France represents 36% of the portfolio ahead of Italy (19%), Germany (16%) and the United Kingdom (15%). Finally, by sector of activity, health (42%) dominates ahead of information technology (25%) and industry (18%).
Maximum entry fee: 4%; annual management fees: 2.2% + 15% of the outperformance compared to the Stoxx Europe TMI Net Return index; value of the share: 151 euros.
Investing opinion
Provided you pay an entry fee reduced to 2%, we recommend this fund for three reasons. First, European mid-caps look attractive to us, as they have underperformed large caps in recent years. Then, the management team has proven itself with Eiffel Nova Europe SRI, also a European midcap fund ranked 2th out of 94 funds over 8 years and 14th out of 169 in 2021. Finally, created in the summer of 2019, Eiffel Nova Midcap performed well in 2020 (+9.5%) and in 2021 (+26%).