Investment Process

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OUR PHILOSOPHY

Covéa Finance's prime purpose is to ensure long-term performance for its clients, expertise gained from its knowledge of discretionary portfolio management for insurance companies. We aim to protect the capital entrusted to us under mandate against monetary erosion and to demand a return for the risk taken, objectives which require the ability to adopt and maintain positions in the financial markets and review such positions in the light of events. These objectives require the ability to both adapt and react in the face of developments on the financial markets and to the specific requirements of each individual client.

Covéa Finance therefore draws on teamwork and a scalable information system dedicated to the fund managers.

The company success is a explained by the satisfaction of its clients, who expect sustainable performance obtained through fundamental, methodological and in-depth analysis. This requires a structure focused on individual accountability throughout the company's value chain.

Covéa Finance draws on its four main assets: its method, employees, clients and systems.

Covéa Finance's strenght also lies in the structure of its Executive Committee, mainly represented by management functions.

OUR METHOD

The management philosophy is built on a long-term vision based on the fundamentals that explain the economy and give orientation to our investments. This expertise, based on maximising internal added value, aims to propose and implement an asset allocation by using an EFO (Economic and Financial Outlooks) approach.

By its very nature, the investment process is iterative. Teams must ensure its consistency as a whole (feedback system). It is an extremely rigorous process, which demands the involvement of all fund management personnel. It is structured around 3 stages:

  1. Preparing the EFO,which comprises a macro- and micro-economic analysis of the financial markets at global level. This stage forms the backbone of fund management as it is the basis for the development of the investment strategy for the various asset classes.
  2. Investment strategies and fund management decisions are implemented in the portfolios at weekly fund management meetings.
  3. Market monitoring, information sharing and the relevance of fund management decisions are reviewed during daily market meetings.

OUR STRENGHT

Autonomy, accountability, independence of judgement, ability to execute and implement the strategy, ability to anticipate and decide, adaptability and reactivity, priority of absolute value over relative value, conscious decision-making (proactive assessment of risk-reward relationship), fund managers accountable for performance and who fully exploit the expertise of internal contributors (economic study managers, quantitative analysts), a fund management method capable of ensuring long-term management and exploiting market momentum and the participation of traders at fund management meetings.

 

EFOs (Economic and Financial Outlooks)

- FREQUENCY: 3 times a year
- OBJECTIVE:  Macroeconomic and microeconomic analysis of the global financial environment which is used to construct a "central scenario". This stage enables us to establish our investment strategies and fund management strategy for the various asset classes.

Fund management meetings

- FREQUENCY: Weekly
- OBJECTIVE: Each committee implements the central scenario, adapting it to each portfolio according to its specific attributes. The Fund Managers review the central scenario in the light of macroeconomic and microeconomic events and where appropriate adjust the positions.

Morning meeting

- FREQUENCY: Daily
- OBJECTIVE: To enable information specific to each fund management department to be disseminated for tactical decisions to be made.

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