For an investor, integrating promising themes and companies that make sense in a portfolio is essential today. This is what you have been working on daily for many years. But what do you really mean by “themes of the future”?
Benoit Quernin: Future themes are long-term trends that benefit from growth rates higher than global growth and should benefit from investment flows above the market average.
We are at the dawn of a fourth industrial revolution driven by the robotization and automation of production techniques, cheaper and faster than ever. These new ways of producing and consuming imply new prospects for economic growth and sustainable development, giving rise to new winners and losers, with the disappearance of old historical operators and the emergence of new leaders.
At Montpensier Finance, our ambition is to seek out these new leaders to create value for our investors. In other words, aim to transform macroeconomic trends into attractive investments.
To do this, we have focused on 4 major issues that we believe have great potential and focused on the United Nations Sustainable Development Goals (SDGs), which are: climate transition (with our M Climate Solutions fund), sport and well-being ( with our ISR M Sport Solutions fund), health (with our ISR Aesculapé fund) and an upcoming fund that will address the digital issue.
What are the issues for the future that stand out within Montpensier Finance? Why these elections?
Benoit Quernin: We are witnessing an acceleration and synchronization of the main global trends, particularly under the effect of digital acceleration, the need for climate transition and the ubiquity of social networks. Planetary emotions are expressed both in social issues and in consumption patterns.
Our Quadrator SRI fund (SFDR 9, Label SRI – SRRI 6) thus brings together 4 themes that allow us to offer our clients a portfolio focused on growth themes for the future within the small and mid-cap segment.
Within these themes, we remain “stock pick” managers focused on individual company fundamentals and financial and extra-financial analysis.
Our Quadrator SRI fund (SFDR 9, Label SRI – SRRI 6) was one of the first to offer multiple exposure in parts of the growing economy:
– Lifestyle: this theme consists of capturing the evolution of consumer tastes in an increasingly connected environment. The Millennial generation does not consume in the same way as their parents and the younger generations seek meaning and belonging through their purchases. Thus, we appreciate companies from the world of luxury that have real know-how to reach Generation Y around the world, but also sports brands with a relevant position in the “Streetstyle” segment.
– Smart Resources: brings together the beneficiaries of the climate transition and the preservation of the earth’s resources that are part of Montpensier Finance’s global SRI approach. We especially appreciate the companies that benefit from the expected doubling of electricity’s share of the energy mix by 2050.
– Better Life: This theme is part of the “Live Better, Live Longer” trend where everyone wants to make their health and wellness a priority. The wave of great innovation in biotechnology is enabling the treatment of chronic diseases and supporting the growth of the entire health value chain. The sports equipment segment remains attractive from a long-term perspective in the face of the sedentary lifestyle of the city’s population.
– Digital impact: this theme aims to identify the winners of the digital revolution both in the world of services and in industry. In the first place, the semiconductor industry, the basis of the digitization of our societies, but also in the “Cloud” economy, which has exceeded the 20% penetration rate in software, driven by the need for operational continuity of companies and the cost assessment. Finally, the Internet of Things also has real potential to transform the industry through models that integrate predictive maintenance and all of this will be accelerated with the deployment of 5G.
Why did you decide to extend your topics for the future internationally? What interest for investors?
Benoit Quernin: Thematic investing focuses on megatrends in markets that are expected to grow faster than the global economy. And in the face of global problems and trends, it is important to have an international approach to investing.
This is how we decline our range with pure “ThematiX” solutions with the aim of selecting international companies fully committed to their underlying themes.
Climate Solutions M (Article 9 SFDR, GreenFin Labels and Towards Sustainability – SRRI 6): The Fund aims to select international companies that provide concrete solutions in the climate transition. In the face of major climate threats, we have defined three major transition vectors in which it is essential to invest: 1) responsible energy, 2) preservation of land capital, and 3) efficient transportation.
Sports solutions M IRS (Section 9 SFDR, Label SRI – SRRI 6): The Fund aims to invest in international leaders in sport and wellness, a market that is expected to see growth of almost twice the global GDP over the next few years. This issue is at the heart of social challenges and is perfectly in line with the United Nations’ SDGs 3, 12 and 11. To do this, we have identified 3 major structural vectors, with highly complementary growth engines:
1) manufacturers and distributors of sporting goods and equipment 2) all the solutions that make it possible to live better and healthier (nutrition, training, active mobility), 3) all the actors in the economy of sport and e-sport (sports rights , organizations, video game developers, electronic components and broadcasting).
Aesculapius SRI (Article 9 SFDR, Label ISR – SRRI 6): The Fund aims to invest in innovative international health players that are changing treatment paradigms through three main key structural vectors:
1) Faster and earlier diagnosis; 2) The discovery and development of treatments based on new therapeutic modalities; 3) Control of production and distribution.
Warning: The decision to invest takes into account all the characteristics, objectives and risks of the UCITS as described in the prospectus and the KIID (available at www.montpensier.com), which should be consulted before making any final investment decision. The UCITS mentioned in particular present a risk of capital loss. The SRRI, a synthetic indicator of risk and return, is presented on a scale of 1 to 7 (with 7 being the riskiest category). It is likely to change over time. Investors are advised to familiarize themselves with and assess the risks associated with financial markets and instruments, diversify their investments and discuss their personal situation with their regular advisor.
Source: BFM TV
