Edmond de Rothschild Asset Management has launched the EdR SICAV Global Resilience fund, an international equity strategy focused on companies that offer long-term structural resilience across four strategic pillars.
The fund aims to capitalise on investment opportunities stemming from growing instability in global markets by identifying companies that can maintain operations and value chains despite systemic pressures. It invests in businesses with strong fundamentals that address societal vulnerabilities in defence, infrastructure, healthcare and resource security.
The EdR SICAV Global Resilience fund will hold approximately 50 stocks, selected because of their financial strength, vertical integration, structural growth and operational resilience. This means holdings should have qualities such as low leverage, the ability to control the value chain, limited export dependence, low exposure to weak governance environments and consistent growth during macroeconomic stress.
Fund managers Aymeric Gastaldi and Christophe Foliot target companies with strategic roles in essential sectors. The strategy focuses on firms that control their supply chains and offer services or products with enduring demand regardless of external shocks.
Cybersecurity and defence is the first strategic pillar. The fund will invest in software companies securing data and IT infrastructure, as well as defence firms benefiting from renewed investment in national security after decades of underfunding.
The second pillar, critical infrastructures, targets companies modernising transport, utilities and communication systems to meet essential needs and enable supply chain resilience.
Safety and protection, the third pillar, includes businesses producing personal safety equipment and those innovating in preventive medicine and healthcare technologies, helping societies prepare for and respond to health crises.
The final pillar, strategic resources, emphasises energy independence, agricultural innovation and efficient resource use. These investments support technologies that reduce reliance on imported energy and raw materials.
Aymeric Gastaldi, senior portfolio manager of the EdR SICAV Global Resilience fund, said: “With happy globalisation now giving way to fragmentation, tension and systemic damage, resilience is central to value creation.
“Companies making our societies safer, more functional and better prepared for economic, political and technological shocks will generate the most value over the long term. This conviction is behind the launch of EdR SICAV Global Resilience.”