LFDE launches Echiquier Go Local in the Netherlands

La Financière de l’Echiquier (LFDE), which has been investing in companies for more than 30 years, announces the launch of Echiquier Go Local[1] in the Netherlands. This new international equity strategy invests in companies that want to meet basic basic needs, which is a global challenge.

The imbalance created by globalization and the interdependence of economies exposes the strategic dependencies and pain points in this complex geopolitical context. This started during the Sino-American trade tensions in 2018. This context – which was accentuated by the health crisis, economic changes, technological developments such as digitalization and the increasing scarcity of resources – confronts us with a paradigm shift.

In light of this, we see that relocation, a long-term structural trend, is a source of opportunities. Nina Lagron, CFA[2] , a fund manager, focuses on international companies that contribute to the self-sufficiency of essential investment sectors. Based on the research of the entire management team, and in particular the International and Thematic Equities team led by David Ross, CFA, she primarily selects companies with strong regional roots in North America, Europe, Latin America and Asia.

This innovative strategy focuses on three strategic areas: technology and industry – 80% of semiconductors are produced in Asia – healthcare – 75% of active pharmaceutical ingredients are produced outside the European Union – and food. The portfolio is concentrated around forty stocks and has a mixed profile, consisting of value stocks that are sensitive to economic and growth cycles[3]. The portfolio takes a flexible approach and is open to strategic opportunities.

Like the rest of LFDE’s share range, Echiquier Go Local is part of an ESG approach that includes sector and normative exclusions, an additional financial assessment using LFDE’s proprietary ESG analysis methodology and engagement with companies through sharing of areas for improvement[4].

Bettina Ducat, General Manager at La Financière de l’Echiquier, says: “Echiquier Go Local responds to a strategic challenge: the self-sufficiency needs of certain essential sectors and areas of expertise. This launch is a concrete expression of our ambition to expand our international offering and is part of a growth strategy focused on innovation. In particular, it meets the diversification needs of our customers.”

Olivier de Berranger, Managing Director and CIO of La Financière de l’Echiquier, adds: “Echiquier Go Local is the result of LFDE’s expertise in identifying structural trends. His dynamic, flexible and opportunistic approach is well suited to the multi-crisis environment we currently find ourselves in. The experienced management team has in-depth knowledge of international equity markets, which is an important asset.”

Nina Lagron, CFA Manager of Echiquier Go Local, adds: “The Echiquier Go Local strategy focuses on companies with key assets such as local production or sourcing, strategic patents and companies that have recently announced government-backed localized projects. This resilient and self-sustaining investment solution, which focuses on the sectors that have the greatest need to relocate, is a unique product.”