MFP Raphael's Ethical Choice fund
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The objective of this strategy is to generate long-term capital growth. To realize this, the fund invests globally in stocks of companies that conduct business with environmental, social and corporate governance (ESG) considerations in mind. As part of the stock selection process, the fund follows generally accepted strategies for implementing the ESG approach. A company’s ESG performance is evaluated independently of financial success based on various indicators, which take into account environmental, social and corporate governance objectives. At the same time, the fund applies strict financial criteria for stock selection to build a sustainable portfolio of quality companies.
This strategy is aimed at dynamic investors who are looking for growth in their portfolio throughout economic cycles. Indeed, companies are the main engine of economic growth by meeting the needs of consumers. In this way, they generate profits that flow to shareholders. The management philosophy of the portfolio managers is very similar to that of a family holding company, where investments are made over the long term, away from the whims of the day, in order to ensure the growth of the portfolio through economic cycles.
This portfolio is therefore not linked to any benchmark.
The MFP Raphael’s Ethical Choice fund is managed by Invest4Growth Asset Management Ltd, a management company founded by the fund’s managers, Sam Safavi and Raphaël Ursi. They are assisted by Luc Picarelle, co-manager of the fund. They all have extensive experience in portfolio management as they built their career in the financial sector at major institutions such as ING, Deutsche Bank, BNP Paribas Fortis and Citibank. They are regularly called upon as experts in the media, at conferences and in post-academic training programs.
This is a portfolio invested in stocks selected by the management team. The fund’s strategy is to seek companies that generate attractive shareholder value with above-average growth and sound fundamentals. This portfolio is based on a bottom-up analysis as opposed to a top-down approach. Since the fund has a long-term economic investment horizon, movements in the portfolio are limited.
The investment strategy is based on qualitative and quantitative analysis.
The qualitative analysis covers various aspects, ranging from the management team to the business model and corporate culture. In the qualitative analysis, we also take into account the company’s initiatives in terms of environmental protection, corporate governance and social impact.
The quantitative analysis, for its part, studies the financial situation, return on invested capital and valuation of the company.
Stock selection process
1) The first part of the selection process relies on strict investment criteria for the stocks in the portfolio. These criteria serve to compose a selection of high quality companies:
2) In a second phase, an analysis of the selected stocks on the ESG parameters will follow in order to arrive at a final selection in accordance with the Fund Manager’s internal ESG policy.
Long term horizon
The Manager selects companies with long-term investment horizons. The positions taken are not based on speculation or events that only have a short-term impact. Investments are made in companies with strong management that can combine an attractive valuation with their growth potential.
As long as the reasons for holding a stock remain valid, the position is maintained in order to let profits accumulate
Advantages of MFP Raphael’s Ethical Choice fund