Amundi and Sand Grove Capital Launch UCITS Fund for Event-Driven Equity Strategy

Amundi and Sand Grove Capital Launch UCITS Fund for Event-Driven Equity Strategy

(IN BRIEF) Amundi, Europe’s largest asset manager, and Sand Grove Capital Management LLP have unveiled the Amundi Sand Grove Event Driven Fund. This fund, available on the Amundi Alternatives UCITS platform, focuses on a global event-driven equity strategy with a European emphasis, aiming to profit from mispricings arising from corporate events like takeovers, mergers, restructurings, and liquidations. Leveraging Sand Grove’s founder Simon Davies’ 22 years of event-driven investing experience and Amundi’s robust UCITS managed account platform, the fund employs a value-biased and contrarian approach, striving to generate alpha with low correlation to equity markets. It combines merger-arbitrage and equity special situations strategies, and both firms are optimistic about the outlook for European M&A as activity levels are expected to rise.

(PRESS RELEASE) PARIS/LONDON, 19-Sep-2023 — /EuropaWire/ — The Fund draws on Sand Grove’s founder and CIO Simon Davies’ 22 years of expertise in event-driven investing, cultivated over multiple market cycles[1], as well as Amundi’s market-leading UCITS[2] managed account platform. It deploys a differentiated value-biased and contrarian approach by focusing on less-followed and more complex situations. The objective is to generate alpha[3] with low correlation to equity markets, while applying a rigorous and fundamental investment process based on a disciplined risk management framework.

The Fund’s investment strategy is a combination of two sub-strategies: 1) merger-arbitrage, consisting of deals triggered by hard catalyst events, such as formally announced and contractual M&A[4] transactions; and (2) equity special situations, with deals triggered by corporate catalyst events, such as spin-offs, divestments, asset sales or other pre- and post-M&A activities.

Nathanaël Benzaken, Head of Amundi Alternatives, said: “Our track record in carefully selecting relevant strategies and managers from the alternative investment universe [5] over the past 25 years has established Amundi as a trusted partner to both clients and investment managers globally. We are delighted to partner with Sand Grove to expand our UCITS range with the new Amundi Sand Grove Event Driven Fund, with the ambition to bring their unique expertise in a UCITS format to investors globally.”

Simon Davies, Sand Grove’s Founder and CIO, added: “Our unique approach to event driven investing will deliver a differentiated risk – return profile to the UCITS market. In Amundi, we have found the perfect partner for this exciting new launch. The partnership will allow the Sand Grove team to focus on what we do best, while also benefitting from the experience and reputation of Europe’s leading asset manager. Together, we have strong conviction in the outlook for European M&A. Activity levels are set to pick up rapidly on the back of improving macro data and financing markets. With fewer specialists focusing on the region, the current elevated rates of return are here to stay.”

Amundi has been investing in alternatives for over 25 years and has been a leader[6] in hedge fund[7] managed account investing with a recognised alternatives UCITS platform of $6bn[8] in assets under management.

Sand Grove Capital is an alternative investment manager founded in November 2014 by CIO Simon Davies. With over $1.5 billion of AUM, the firm employs a traditional global focused event-driven strategy by exploiting opportunities across the capital structure.

1. ^ [1] A market cycle is an up-and-down oscillation or recurring phase of market growth and decline.
2. ^ [2] Undertakings for the Collective Investment in Transferable Securities
3. ^ [3] Alpha refers to as a measure of outperformance, meaning the alpha is the difference between what an asset returned and what its benchmark returned.
4. ^ [4] Mergers & Acquisitions
5. ^ [5] An alternative investment is a financial asset that does not fit into the conventional equity/income/cash categories. Alternative investments can include private equity or venture capital, hedge funds, commodities etc. While traditionally aimed at institutional investors, alternative investments have become feasible to retail investors via alternative funds
6. ^ [6] Source: HFM Week, “Top managed account platforms 2021”
7. ^ [7] Hedge funds are classed as alternative strategies. Their distinctive characteristic is the fact that they aim at an absolute performance, and not a relative performance compared to a benchmark index.
8. ^ [8] Amundi data as of 30/06/23

About Amundi

Amundi, the leading European asset manager, ranking among the top 10 global players[1], offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €1.95 trillion of assets[2].

With its six international investment hubs[3], financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

Amundi clients benefit from the expertise and advice of 5,400 employees in 35 countries

1. ^ [1] Source: IPE “Top 500 Asset Managers” published in June 2023, based on assets under management as at 31/12/2022
2. ^ [2] Amundi data as at 30/06/2023
3. ^ [3] Boston, Dublin, London, Milan, Paris and Tokyo

Information

This is a marketing communication. Please refer to the prospectus / information document and to the PRIIPS KID before making any final investment decisions.

This document is intended solely for the attention of journalists and professionals of the press/media sector. The information contained herein concerning Amundi Sand Grove Event Driven Fund is provided solely to enable journalists, media professionals and media to have an overview of Amundi Sand Grove Event Driven Fund and whatever use they make, which is exclusively for independent editorial, Amundi assumes no responsibility. The information in this document is as at 12 September 2023 except where otherwise stated. This material is based on sources that Amundi considers to be reliable at the time of publication. Data, opinions and analysis may be changed without notice.

Please note that the management company may de-notify arrangements made for marketing as regards units or shares of the Fund in a Member State of the EU in respect of which it has made a notification.

A summary of information about investors’ rights and collective redress mechanisms can be found in English on the regulatory page at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation.

Information on sustainability-related aspects can be found at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation.

Media Contact:

Amundi
Jaïs Mehaji
Tel: +44 (0) 7500 558 924
jais.mehaji@amundi.com
H/Advisors Maitland

Finlay Donaldson
Tel: ++44 (0) 207 379 5151
finlay.donaldson@h-advisors.global

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