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10 Jul 2019

Management process

Management Process

Our management relies above all on open architecture. To guarantee the selection of the best products, we have implemented simple and transparent processes that offer you a custom portfolio that meets your expectations and objectives. Whether it's stock-based or fund-based, your manager will bring you the best products available in the market through our fund selection and internal security rating processes.

Fund selection

Our methodology combines quantitative and qualitative analyses to achieve a solid and sustainable fund selection. The vehicles selected for you are first assessed according to objective criteria:

Performance
Analysis of performances in various time frames to select the funds whose performance is superior to that of comparable profiles.

Risk
Study of the risk generated by investment processes over various time frames to select the funds offering lower risk.

Adjusted Risk Performance
Comparison of the adjusted performance of different vehicles’ risk to ensure optimal selection in terms of risk vs return.

Robustness of Performance
Take into account the robustness of investment process performance to select the vehicle with the most stable relative performance over time.

Initial systematic reviews are performed with a more qualitative study, which assures us of the strength of our partners and of the funds selected for you. These analyses relate to:

The Management Company
Analysis of the management company’s quality.

Structure of the Fund
Analysis of the fund's structure (history, liability ...)

The Management Team
Management team analysis (turnover, experience, back-up …)

The Management Process
Analysis of the management process, its stability, its reproducibility, purchasing / sales policies...

Risk Management
Analysis of the risk department’s organisation (nature of checks, tools used ...)

Communication
Analysis of management communication (quality of the information transmitted, responsiveness, availability ...)

Credit Rating

To allow you broaden your portfolio’s investment universe and diversify your risks with complete peace of mind, Fuchs have implemented an internal corporate rating methodology.

This is based on a systematic analysis of a broad range of over 3,000 companies in the European, American, Asian, developed and emerging markets and encompasses all sectors of activity. Our analyses are based on four pillars:

Financial Analysis
Comparison of the financial strengths of companies in relation to their competitors. The analysis focuses on three criteria:
- Growth
- Valuation
- Visibility
This analysis results in an internal rating from A (best rating) to E for stocks and bonds.

Consensus Analysis
A market consensus study to compare the result of our internal analysis with the market’s expectations.
-Analysis of market revisions on the results,
-Analysis of the dispersion of the analysts’ consensus,
-Analysis of default rate probabilities,
-Analysis of main agency ratings.

Technical Analysis
Analysis based on a series of three indicators to define investment timing.

ESG Analysis
Analysis based on a series of established environmental, social and governance criteria.

Our filters allow you to map each company’s risks and market sentiment and optimize your portfolio according to your needs.
To perfect our internal analyses, we also use external studies thanks to our partnerships with the best research sources on the market.