Fundamental equity management involves identifying mostly European companies with sustainable franchises, healthy balance sheets, solid cash flow generation and a robust business model. Particular attention is also given to the quality of management, clarity of communication and sound corporate governance.
- A combination of bottom-up security selection and top-down thematic views enables the investment teams to pick long-term winners.
- Our domains of expertise also include Listed Real Estate, which invests in REITs across Europe in a number of niches marked by management capabilities and cash flow generation, where the risk-reward is favorable.
- Investors looking for dividend equity funds in the current low-yield environment are able to invest in companies worldwide with quality business models that generate sufficient cash flow to cover the dividend payment, now and in the future.
- This approach is also applied in the small cap investment fund, a market segment in which we have considerable expertise.
Quantitative & Systematic Equity
Quantitative & Systematic Equity involves a number of approaches:
- The Passive/Indexing Approach supports clients’ global and regional equity allocation decisions:
- exposure to 46 developed and emerging countries
- passive products cover 2,400 stocks and 85% of global market cap
- exposure to the MSCI sustainable indices offered to clients seeking an ESG overlay
- The Behavioral Value Approach exploits behavioral biases and errors on financial markets to capture the value premium and anomaly:
- shields portfolio management from over- or under-reaction and cognitive errors
- benefits from mispricing of financials assets.
- The US Dividend Systematic Approach reflects the performance of high quality US companies exhibiting relatively low volatility and high dividend yields:
- investments diversified across sectors and industry groups.
- Finally, the Asymmetric Approach offers a UCITS-compliant strategy to control maximum drawdown:
- focus on capital preservation, while also capturing upside moves.
- asymmetric pay-off by minimizing the cost of protection, intelligent diversification, security selection with an attractive risk/return relationship, and tactical asset allocation techniques.
We combine a top-down approach, based on thorough analysis of the macro-economic environment and market behavior, with a value-driven bottom-up security selection process.
We set out to:
- avoid complexity without oversimplifying.
- build robust portfolios with sound liquidity
- carefully match selected risk premiums within or across fixed income sectors with an acceptable level of portfolio volatility
- avoid default conditions at all times via rigorous credit analysis
- refrain from actively seeking value in distressed bonds
- use in-house analysis to identify fundamentally sound credits
Our dedicated portfolio managers mainly invest across the following broad fixed income sectors:
- government or government-related bond exposure, within the EU and globally. We manage both nominal as well as inflation linked government bonds.
- investment grade corporate bonds (within the EU or globally), which continue to grow in public capital markets as banks’ balance sheets are used less as a funding source for companies.
- high yield corporate bonds giving investors access to higher risk premia, where far-reaching analysis and understanding are necessary to deliver optimal risk adjusted returns.
- emerging market debt sovereign bonds with a sustainable overlay targeting attractive yields, while improving the risk/return profile by shunning non-democratic countries.
We help institutional clients to find the optimal strategic asset allocation, thanks to liability and scenario analysis and stress testing.
We focus on:
- tactical asset allocation: deviations from the strategic allocation
- security selection: finding the best performing individual securities
- portfolio construction: building a robust portfolio that withstands unexpected events
The portfolio managers monitor risk and exposures and provide reporting to offer an insight into the composition of the realized returns.
Global balanced solutions are intended to provide an optimal mix of assets - equities, bonds, currencies or commodities - by analyzing economic drivers and variables.
Patrimonial strategies target:
- steady capital growth
- preservation in the long term
- decent returns with limited volatility
- portfolios that thrive in any market condition.
Risk management is a key feature of the investment philosophy.
The experience that Degroof Petercam Asset Management has since 2001 gained in responsible investment has led to a rigorous and disciplined investment process based on a credible and recognised expertise.
Degroof Petercam Asset Management offers its clients tailor-made solutions that range from a high-level integration of ESG factors to best practices and exclusion-based approaches. Our sustainable strategies share the same commitment and objectives namely:
- Defend the basic rights – UN Global Compact
- Express an opinion on controversial activities
- Be a responsible stakeholder and promote transparency