Groupama Asset Management is committed to financing technology companies

30/07/2020

Visuel 1

The G Fund World (R)Evolutions fund, selected as part of the ministerial initiative for the financing of technology companies.

Following the French institutional investors’ committee meeting on July 6, G Fund World (R)Evolutions is among the first funds in listed securities selected as part of the initiative to finance “tech” companies. An initiative promoted by the Ministry of the Economy and Finance, the Secretary of State in charge of the Digital Economy and under the support of the Presidency of the Republic. Through to this fund, invested primarily in “Tech” stocks, Groupama AM is part of the commitment made by 22 institutional investors to contribute to actively financing companies in the technology sector.

In July 2019, the report “Financing the Fourth Industrial Revolution – Solving the financing grid-lock  for technology companies”*, edited by Philippe Tibi, highlighted the lack of expertise in investing in tech company funding in France and a lack of funding capacity at a time of industrial and commercial acceleration. To overcome this dual market failure, French institutional investors have undertaken to invest more than 6 billion euros in the funding of tech companies by 31 December 2022.

G Fund World (R)Evolutions has been selected by the technical committee representing these institutional investors to support their undertaking to fund technology companies by providing them with the capital necessary to finance the phases of hyper-growth.

Groupama AM sees the global tech sector in terms of a world that is changing due to the effects of three transitions – digital, demographic and environmental. These transitions form the basis of the Groupama AM model, whereby ESG criteria are integrated into investment decisions. So, the investment philosophy of G Fund World (R) Evolutions is to identify the economic and technological leaders of the 21st century and to support these French or international companies, as key players in the transformation of our world, through their capability to create value.

Mirela Agache

Groupama Asset Management operates on conviction and has long been committed to funding global tech and ESG. So, it was only natural that Groupama AM would put its full weight behind this market project to increase the expertise of tech asset management in order to nurture a national technology investment ecosystem. We have undertaken to significantly increase our investment in French and European securities in these sectors and to develop the management and analysis skills dedicated to this fund.

Mirela Agache Durand
CEO of Groupama Asset Management

Evolution, Disruption and Revolution

 Our management team has segmented the investment universe into three key themes, based on the specific characteristics and prospects of these companies: Evolution, Disruption and Revolution.

  • The companies “in evolution” are those that are adapting by reinventing their products and/or services, their strategy, their internal process and their methods of interacting with their customers. The sectors where these businesses operate are varied – chemicals, telecommunications, transport etc.
  • Disruptive” companies are shaking up and generating change in their own industry. They are radically transforming it and challenging existing positions. For example, some of these companies can be found especially in the low-cost sectors and in digital retail.
  • The companies instigating a “revolution” are changing the world. The repercussions of the changes they are causing extend far beyond their own domain of activity.

Often, these companies are responding to a particular societal challenge by creating a new market, as in the case of certain biotech companies.

 

Philippe Vialle

This fund is a conviction fund, developing a resolutely active investment approach, independent of market benchmarks and taking into account environmental, social/societal and governance criteria.

Philippe Vialle
International Equity Manager

A resolutely “tech” portfolio

More than 90% of the portfolio is concentrated and invested in the technology sector or in companies that use tech products. Given the lack of market-quoted French tech companies, the fund is currently mainly invested in globally listed securities, but it will progressively shift the balance of its geographical distribution in order to contribute to the development of the French and European investment ecosystem in response to new tech IPOs. 30% of the portfolio is already invested in small and mid caps.

 

Disclaimer

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This non-contractual document does not, under any circumstances, constitute a recommendation, request for offers, an offer to buy or sell or an arbitrage offer, and may in no case be interpreted as such.

The commercial teams of Groupama Asset Management and its subsidiaries are at your service if you wish a personal financial recommendation.