Top manager handed European small cap fund

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Banque de Luxembourg is set to launch a European smaller companies fund in order to build on the experience of its existing European equities team.

The BL-European Smaller Companies fund will invest in companies with a market cap of between €300 million and €1 billion, which the company said will cover both small and mid-cap names.

Management of the new fund will be handed to Citywire AA-rated manager Ivan Bouillot, who currently runs the firm’s BL-Equities Europe fund.

The fund is currently in its initial subscription period, with a spokesperson for Banque de Luxembourg confirming to Citywire Global it will be officially launched at the end of November. 

Bouillot is expected to call on the experience and investment approach he has honed on the €521 million European equity fund, which has run since January 2005.

The fund will concentrate on around 30 stocks, with a focus on companies which are leaders in their respective field with a high level of profitability, and will be able to invest up to one-third of its portfolio in cash as well as use instruments to hedge its exposure.

The BL-Equities Europe fund has returned 45.68% over the past three years. This compares to its Citywire benchmark, the FTSE World Europe TR EUR, which rose 21.88% over the same period.