Best Business Models SRI

Best Business Models SRI

Nowadays, Companies are facing three major issues:

Globalisation, Digitalisation and Regulation.

Companies are no longer developing at a constant pace. Shifts in the corporate lifecycle have to be identified as early as possible.

Our investment philosophy aims to assess a company’s upside potential as a function of its positioning in its lifecycle and to benefit from upgrades or downgrades in market opinion in the stock.

Portfolio values are analysed using a two-pronged approach: the Business Models method,which analyzes the evolution of companies in their life cycle, and our proprietary methodology SRI Analysis, Montpensier Governance Flag (FgM), and Montpensier Impact Assessment (MIA).

Business Models Method 

Analyse Business Models' lifecycles

Look for attractive pairs of share price upside/downside risk

 

We note companies by quantitative criteria (growth, financial strength, consensus dispersion, etc.) and qualitative criteria (ESG, sector environment, competitive advantage, management...). Then we estimate the stock market potential according to a set of criteria. We then aim to focus on titles that have an attractive note/potential couple.

Proprietary SRI Analysis Methodology

All the values in the portfolio come from the ESG investment universe, and are analyzed using proprietary methods of analysis SRI Montpensier Governance Flag (MGF), and Montpensier Impact Assessment (MIA).

A 4-step exclusion process is applied to the universe of values present in the segment preferred by Best Business Models SRI:

• Exclusion lists extended to certain activities;
• Companies rated "CCC" or "Red Controversy Vigilance";
• Companies that do not have good governance practices, identified using the FGM method;
• Companies with a negative social and environmental impact, measured using the MIA method.

The SICAV Best Business Models SRI is invested at least 75% in EAP-eligible shares, particularly in Eurozone equities with a predominance of large and medium-sized securities. The SICAV is exposed to a minimum of 60% of net assets in equities of euro area countries.