Our stock selection process

Our stock selection process

We have a single strategy for all our equity investments, focused on sustainability and the long term. We do not try to predict the direction of market movements or how certain stocks will react to the daily news. Instead, we invest in companies capable of generating above-average profitability over a long period. Our equity strategy is based on the conviction that sustainability, quality and diversification add value, 

How we select stocks

We search for companies that meet our definition of sustainable quality, on the basis of a fundamental investment process. Our conviction that sustainability, quality and diversification add value is the starting point, combining a fundamental selection process with quantitative systems for idea generation and portfolio composition.

Besides the general exclusions we implement based on our SRI policy, such as companies involved in the production of tobacco products or controversial weapons, we assess companies on the four pillars of sustainable value creation:

• Is the industry attractive?
• What are the competitive advantages that protect profitability?
• Is management capable of creating long-term value?
• How does the company deal with ESG issues to create value?

All these factors contribute to ensuring the long-term profitability of a business. In other words, they provide a moat around a company to protect its stability and profitability.

By finding a good balance between stocks from different sectors and countries, we put together a portfolio that can withstand market shocks.