Pure Capital - Independent asset management

Pure Europe Small & Mid Cap Equities - FC An equity fund This information is valid at 24/11/2022

A selection of small and medium-size European companies, disciplined management, with a focus on Growth, Quality and Valuation.

“European small and mid-cap companies can offer excellent potential, but there are some traps to avoid, such as confusing a fashionable trend with true growth potential, or not being sufficiently wary of valuations. The companies we select for this sub-fund must be positioned on a sustainable growth trend and must meet our quality criteria, particularly in terms of cash flow generation, which is in our DNA. But these companies still need to be reasonably valued. The strict discipline we observe when buying or selling a company is another way that we can enhance potential return”. 

Jean-Mickaël Dos Santos
The sub-fund’s manager, Small & Mid Cap Equity Analyst & Fund Manager

  • ISIN code : LU1410420092
  • Risk level (SRRI) : 6
  • Investment horizon : Min. 5 years
  • YTD performance : -23,06%
  • 1-Day Return : +1,09%
  • Net asset value at 24/11/2022 : 97,52 €
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Performance

Change in net asset value This information is valid at 24/11/2022

Annual performance This information is valid at 24/11/2022

Periodic performance This information is valid at 24/11/2022

YTD
1M
3M
6M
1Y
3Y
5Y
ITD*
-23,06%
+5,84%
-6,28%
-9,16%
-19,42%
-1,1%
-4,24%
-0,41%

Performance over a period of more than one year is annualised. For periods of less than one year, returns are cumulative.

* Inception to Date. Annualised performance since the share was issued on 23 September 2016.

Source: Pure Capital

Important information for investors:

The chart and returns shown above refer to past performance and do not constitute a reliable indicator for the future. This fund does not offer a capital guarantee. Before investing, you should always read the Key Investor Information Document (KIID) and the prospectus.


Description

Investment policy and objective

The sub-fund’s objective is to maximise the investor’s returns over the long term, through the active selection of small and mid-cap companies, most of which are based in Europe.

Although the fund manager does not seek to replicate the performance of a benchmark, he will aim to outperform the MSCI EMU Small Cap Index Net Total Return (EUR) index, which is simply a basis of comparison.

The stock-selection process is based on the fund manager’s fundamental analysis of companies that are well-positioned for sustained growth, and which meet specific quality criteria and in particular have good cash flow, high and sustainable profit margins, a strong balance sheet, a management team with a proven track record, and a leading position in their market. Valuation is also an essential criterion. The fund manager’s investment style may be described as Growth At a Reasonable Price (GARP), for which he has his own criteria.

Although the fund manager will mainly invest in European equities, he may make marginal investments opportunistically in listed North American companies, to a maximum of 15% of net assets.

Investor profile

The sub-fund is intended for all investors who are looking for opportunities in European small and mid-cap companies.

Investors much have a long-term investment horizon of at least five years.

Investors should note that due to the relatively small size of the companies in the sub-fund’s portfolio this investment strategy may be subject to greater liquidity risk.

Risk level (SRRI)

1
2
3
4
5
6
7
Potentially lower reward
Lower risk.
Potentially higher reward
Higher risk.
dsc_7352nb.jpg Jean-Mickaël Dos Santos Small & Mid-Cap Equities Analyst & Fund Manager +352/26.39.86.64   jmdossantos@purecapital.eu Get to know him

FUND CHARACTERISTICS

Key information

  • Name: PCFS – Pure Europe Small & Mid Cap Equities - FC
  • Classification: European small and mid-cap equities
  • ISIN code: LU1410420092
  • Bloomberg ticker: PURESMF LX Equity
  • Type: Undertaking for collective investment in transferable securities (UCITS)
  • Legal form: A sub-fund of the “PCFS” Luxembourg SICAV fund
  • Inception date: 23/09/2016
  • NAV on inception: €100
  • Currency: EUR
  • Benchmark index: MSCI EMU Small Cap Index Net Total Return (EUR)
  • Share type: accumulation
  • Term: Indefinite
  • Minimum recommended investment horizon: 5 years
  • Investor type: Retail
  • Management company: Pure Capital S.A.
  • Auditor: PwC Luxembourg
  • NAV publication: Website, Bloomberg, Morningstar, Beama.be

Fees and charges

  • Management fee: 0.50%
  • Performance fee: 10% of returns above the MSCI EMU Small Cap Index Net Total Return (EUR) index, with a high water mark 
  • Ongoing charges (including management fee): 1.14% 
  • Subscription fee: Max. 3%, at the distributor’s discretion 
  • Redemption fee: 0%

Subscriptions and Redemptions

  • Minimum investment requirement: €5 000 000
  • Cut-off: 10:00 am (CET) 
  • NAV valuation frequency: Daily 
  • Settlement date: max. (D+3) 
  • Transfer agent / Depositary: RBC Investor Services Bank S.A. 
  • Swing pricing applicable: No

MAIN RISKS & ADVANTAGES

ADVANTAGES 

  • Offers exposure to the performance of European small and mid-cap companies, irrespective of sector;
  • Active investment management seeks to maximise performance in the European small and mid-cap segments, rather than hide behind an index;
  • A rigorous investment process that is underpinned by growth, quality and valuation criteria and a strict sell discipline;
  • Provides access to a diversified portfolio of securities.

RISKS

  • “Equity” risk: The price of an equity security may vary, sometimes due to factors that have nothing to do with the company’s intrinsic value. Equity prices may be affected by economic factors and market conditions, such as a general decrease in share prices or conditions that affect one or more specific issuers, such as changes in earnings forecasts;
  • Small and mid-cap investment risk: Although smaller companies have the capacity to increase their share price more rapidly than do larger companies, they are subject to greater risks; 
  • Credit risk: An issuer may be unable to meet its obligations; 
  • Counterparty risk: The sub-fund may suffer losses if a counterparty defaults and is unable to meet its obligations, particularly if the transaction with the counterparty involves over-the-counter derivatives; 
  • Liquidity risk: The sub-fund may invest in markets which may be adversely affected by a decrease in liquidity. These market conditions may affect the price at which the asset manager buys or sells a given security; 
  • The risk of using certain financial techniques: The use of complex products, such as derivative contracts, may amplify changes in the price of the sub-fund’s securities; 
  • Exchange rate risk: The risk that the exchange rate of a given currency may vary with respect to that of another currency over the near or medium term; 
  • Discretionary management risk: There is a risk that the sub-fund may not always be invested in the best-performing markets; 
  • Operational risk: The risk of an error or wrongdoing on the part of a party involved in the management, valuation and/or custody of the sub-funds assets.

Disclaimer

Before investing in this fund, you should carefully read the Key Investor Information Document (the “KIID”) and the prospectus. The KIID, the prospectus, the audited annual report and the unaudited semi-annual report are available on this website.

The information presented above does not constitute investment advice and is intended solely for marketing purposes.

Past performance is not a reliable indicator of future results. Performance may vary over time. Investments in this fund are subject to market fluctuations and investors may not recover all of their initial investment. Pure Capital may vary the fund’s future exposures, allocations and investments as it deems appropriate to accommodate different market conditions. There can be no guarantee that investment objectives will be met.

Management fees, depositary bank fees, and all other fees and charges indicated in the prospectus as borne by the fund are included in the calculation of its net asset value and consequently of its performance. 

The taxation of this financial product depends on the investor’s specific situation.

 

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