EV MICRO COMPANIES GROWTH FUND

The EV Micro Companies Growth Fund is a ‘long-only’ equity fund with the following main features:

  • investing in shares of listed companies with a small market capitalization;
  • with a geographic focus on Dutch, Belgian and German companies;
  • which offer attractive growth potential for the long term (megatrends); and
  • by means of a concentrated equity portfolio with a maximum of 20 holdings.

Micro caps

The EV Micro Companies Growth Fund invests in shares of small listed companies (with a market capitalization of less than € 500 million), so-called ‘micro caps’. Micro caps are an extremely interesting investment category. This segment is not or hardly followed by analysts, which means conducting thorough own research provides surprising investment opportunities. This segment is characterized by a relative high level of mergers & acquisitions activity.

Megatrends

The fund manager will preferably invest in companies that offer attractive growth potential for the long term (at least 5 years) and will explicitly look at so-called megatrends. These are trends that have a major impact on society. The fund manager has selected four megatrends:

  • Automation
  • Mobility
  • Energy transition / Climate and
  • Demography

Benelux and Germany

The fund will only invest in companies that are well known by the fund manager. That is to say, with headquarters in the area, with activities the fund manager can understand and model and with a management team that is accessible. Hence the strong emphasis on companies from the Benelux and Germany. These companies often have a strong international profile and thereby indirectly also offer global investment exposure.

Fundamental analysis

The fund manager looks at both qualitative and quantitative aspects of a company. Qualitative aspects include an assessment of whether the company’s activities fit within the selected megatrends and whether the company has growth potential. The strategy of the company and the quality of the management are an important part of this. For quantitative aspects, the fund manager estimates the future financial development of a company on the basis of a quantitative model.

Concentrated portfolio

The fund manager strives for an average return in the long term (at least 5 years) of at least 10% per year after deduction of all costs incurred by the fund. The fund invests exclusively in companies that are listed on a regulated market. The portfolio will consist of a maximum of 20 positions.

ESG

Environmental, Social and Governance (ESG) factors are part of the investment policy. The United Nations Sustainable Development Goals serve as a guideline in this respect. Aspects related to the environment, social performance and good governance are taken into account in the analysis of the investments.