March Gestión de Fondos (MGF), the boutique asset management arm of Madrid-based Banca March, is poised to start selling its Sicav fund range in the UK, having already expanded into Austria and Italy. Germany and Switzerland are other imminent targets.
Similar to the Torrenova and Vini Catena funds, MGF last year launched The Family Businesses Fund, a global equities markets investment fund.
It invests exclusively in listed family-owned companies, in which more than 25% of the shareholders belong to a single family, where at least one member of the family is involved in its management and where there is an interest in passing on the property to the next generation.
The Family Businesses Fund is registered in Spain, Italy, Austria and Luxembourg. March Gestión has SICAVs in Luxembourg as a platform for distribution to European customers and institutions.
The fund is drawing attention because its holdings combine the philosophy of family businesses (FBs) with the transparency and liquidity of listed entities. More than 80% of all the world’s business are family run, and historically, family businesses outperform and have better earnings stability than non family businesses.
Far from being restricted to micro stocks, some of the world’s biggest enterprises – such as Arcelor Mittal and ThuyssenKrupp — are included in the fund. FBs are also considered valuable defensive holdings, since they usually have the long term strategies and low leverage ratios that endure through recessionary times.
MGF’s ambitions have been announced just as analysts are suggesting an upturn for European equity markets, where many companies are lean and cash-rich after the austerity measures of recent years. In spite of testing markets, MGF has maintained steady growth in both assets under management, and its investor base. It is now taking its proven process and fresh ideas to new markets.