• Management
  • Method
  • Principles

Our Methodology

Our fund managers and analysts follow over 2,000 companies in more than 40 countries. The know-how acquired over 25 years follows a consistent methodology formed of four key stages.

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Regular meetings: over 1,500 visits per annum

To garner an in-depth understanding of the companies in which we invest, our fund management teams systematically meet and discuss with the companies’ leaders and decision-makers. Nothing can replace direct contact to assess the quality of a company’s management team. Our fund managers and analysts carry out more than 1,500 meetings annually. In addition, the teams participate in more than 500 public information meetings each year.

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Assessment: qualitative and quantitative ratings

Each company is rated according to our proprietary grid comprising six criteria:

  • Management quality
  • Financial structure quality
  • Results visibility
  • Growth perspectives
  • Speculative aspects
  • Social and environmental responsibility
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Valuation: buy and sell prices

Company valuation is at the heart of our methodology. Before any investment takes place in-depth financial analyses are carried out based on a dynamic view of the company and the markets to ascertain the following:

  • A buy price above which we would not consider it judicious to purchase shares in the company.
  • A target sell price based on a medium-term valuation and which dictates that once the shares achieve that target, they will be divested from our portfolio.
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Documenting: making a case to invest

An investment case must be made for all companies once meetings have taken place and they have been rated and evaluated. This assessment, filed in a database, summarises the key assumptions made and the reasoning behind the proposal to invest:

  • Management style
  • Company characteristics
  • Current situation and dynamics
  • Reasons to invest
  • Financial data (buy price) and target sell price
  • Management ability to create value
  • Main risks identified
  • Environmental and social responsibility
 

Our Principles

It’s the people who make the company

Know the company's managers and leaders

Between several companies that offer similar prospects, most often it’s the leaders who make the difference. This is why our fund managers pay particular attention in getting to know the management team. Evaluating the management means not only judging their credibility but also judging their commitment towards their stakeholders. Such an analysis, sometimes subjective, not only avoids opportunistic ventures but also identifies managers with a true long-term strategic vision.

 

Structured meetings with the management

To extend and share their experience, our fund managers have documented their best practices on managing interviews with company directors. The resulting ‘Interview Guide’ is an invaluable tool that identifies the questions that need to be covered to build a robust and resilient investment case.

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Every listed company has a fair value

Fluctuations in the value of a company

Share prices fluctuate constantly according to information gathered by the markets.

The mix of actors with very different performance horizons (from very short-term for the ‘day trader’ to long-term for the pension fund investment manager) can create a level of confusion to observers of these market fluctuations.

Determining an objective value

We are firmly convinced that every company has an ‘objective’ value directly related to the capital employed to run the company and the profits achieved. Knowing how to determine this ‘value of things’ brings consistency to investment choices despite market fluctuations.

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It is possible to reconcile performance and responsibility

Integrating ESG criteria in our analyses

The sustainability of a company does not rely solely on its profitability. Integrating ESG (Environmental, Social and Governance) criteria into our company analyses enhances our knowledges and enables us to invest your capital with confidence for the long-term.

Affirming our commitment through signing the PRI

Becoming a signatory to the Principles of Responsible Investment asserts our commitment to responsible finance.

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