• Active investment management style.
• Prudent and disciplined process.
• Based on analysis of intrinsic quality, value and risk.
• Strategies across all major asset classes.
• In equities - quality businesses with sound management, conservative debt and recurring earnings.
• In cash and fixed interest - regular income liquidity and capital stability.
• Find out more about our strategies and investment approach below.
Non-benchmarked conviction-based equity management, favoring stock-picking based on fundamental analysis of stocks as well as a collegial approach encouraging the sharing of expertise and validation of convictions of experienced managers.
Portfolio Management Process
• The collation of information via sell-side analysis, visits to company managers and the recommendations of the Scenario Central Committee promoting curiosity, independence, diversity and collaboration.
• The analysis of a company’s strategy and the environment permitting it to adhere to this strategy, thus validating the credibility of the company, its sustainability and its ability to create value.
• The analysis of financial data which allows the portfolio manager to establish a company’s profitability, debt and valuation.
• Portfolio construction, based on picking exactly the right moment to buy the stock whilst at the same time controlling risk.
• Specialized management based on market cap.
• Management with a style bias on dividends, growth, etc.
• Management of themes and sectors.
The management of government and corporate Fixed Income is active and non-benchmarked. It is characterized by the dynamic management of overall modified duration (considerable investment leeway which is fully exploited) the main performance driver and by firm choices on exposure to the yield curve, geographic zones, nominal and real rates, credit and currencies. This active management is monitored based on rigorous risk control procedures, using specific tools, with particular attention paid to the liquidity of securities and the fact that investments are made uniquely in the “investment grade” universe.
Portfolio Management Process
Strategic positioning based on macroeconomic analysis, advanced indicator analysis, credit cycle analysis and the recommendations of Cunningham Mutual’s “Scenario Central’ Committee.
• Tactical positioning based on macroeconomic analysis and technical factors.
• Issuer selection and portfolio construction.
• Active non-benchmarked management of pure government or aggregate funds
• Satellite management: absolute return, inflation or negative modified duration funds, etc.
Balanced management is characterized by the active management of strategic asset allocation and strong reactivity in the tactical phase of the process. This conviction-based management is based on the economic and market forecasts of the portfolio manager and the recommendations of Cunningham Mutual’s “Scenario Central” Committee, a monthly meeting of all the portfolio managers. The management integrates strict risk control using specific tools, due diligence of mutual funds (where relevant) and special attention is given to the liquidity of securities and hedging strategies. This approach is extended across different risk/return profiles in direct lines or funds of funds.
• Balanced via funds of funds: active management of the strategic asset allocation and selection of mutual funds, with considerable freedom given to investment themes within the investment guidelines.
• Balanced via a fund invested in direct lines: active management of the strategic asset allocation associated with the combined expertise of an equity manager specialized in stock-picking and an active fixed-income manager.
• Convertible bonds: a unique approach based on the fundamental analysis of the underlying equity and dynamic management of the overall delta based on portfolio manager forecasts and the recommendations of the “Scenario Central” Committee.