Responsible value investing
CSR Policy - Our ESG approach - Engagement policy - Responsible Value investing - Global initiatives
An approach fully integrated into the investment process
We pursue a multi-sector Best-in-Class/Best Effort approach to SRI that encourages companies to make improvements in three key extra-financial areas: environment, social and governance.
Our SRI approach is in phase with our Value management style, aimed at breaking free of short-termism to generate long-term outperformance.
Our academic collaboration with Université d'Auvergne paves the way for developing a long-term response to the dichotomy between corporate social responsibility and valuation.
This collaboration was enhanced with the launch in 2012 of the "Value and Corporate Social Responsibility" Research Chair. METROPOLE Gestion is a founding partner of the new Chair with Michelin and Caisse d'Epargne d'Auvergne et Limousin, and la Maif.
The Responsible Value investing process
- A rating specific to METROPOLE Gestion developed with the University of Auvergne
- Definition of an investable universe
- Value investing applied to this investable universe
A global, integrated investing process
A 360° analytical approach to the company, taking into account three aspects: extra-financial analysis, financial analysis, balance sheet analysis
- Choice of securities:
- discounted against their industrial value,
- in sound financial health commensurate with their activity and the economic cycle,
- demonstrating strong extra-financial conviction: companies rated above or equal to BBB- (Investment grade) may be selected with no Best effort condition; companies rated below or equal to BB+ may be selected subject to a minimum +++ Best effort rating; companies rated in the CCC bucket are ruled out.
- Adjusted according to:
- financial catalysts,
- extra-financial catalysts: new controversies or changes in extra-financial rating.
- Exit from the portfolio or lower the weighting in the event of:
- downgrading of the extra-financial analysis (significant controversies or rating downgrade),
- disappearance of catalysts,
- decrease in financial discount.
SRI value investments represent 4.2% of total assets managed by METROPOLE Gestion at 31/12/18.
Exclusion policy
METROPOLE Gestion excludes any companies directly or indirectly linked to the financing of controversial weapons, as provided for by international conventions, to coal production and consumption, to tobacco production and to pornography and extends this exclusion policy to all its portfolios.
Further details of our exclusion policy may be consulted by clicking here.
Incorporating ESG criteria into risk management and internal control processes
Our policy regarding Incorporating ESG criteria into risk management and internal control processes may be consulted by clicking here.