Our investment philosophy
Our investment philosophy
The Inflection Point investment philosophy involves the integration of non-financial metrics and megatrend exposure with financial criteria throughout the investment process.
Strategically Aware Investing
The idea of Strategically Aware Investing (SAI) is that companies need to adapt their capabilities to compete successfully in today's complex and dynamic environment. Attributes including innovation capacity and responsiveness will increasingly influence corporate performance. Similarly, operational and financial performance are likely to be influenced by the strategic positioning of companies in relation to key social, environmental and governance (ESG) risks and opportunities, and the skill of management in navigating these challenges.
The La Française Inflection Point investment process deeply integrates financial and non-financial analysis through a shared research platform and close team interactions. By combining financial analysis, 5-Factor™ performance, and thematic exposure, Inflection Point’s research approach supports securities selection across sectors, asset classes and geographies.
The Inflection Point 5-Factor™ model
Inflection Point’s proprietary 5-Factor™ model assesses the following critical elements of sustainable investing: environmental sustainability, human capital, organisational capital, adaptability and responsiveness, and innovation capacity. These factors are comprised of risk and value drivers that organise the underlying KPIs, which are themselves weighted and selected according to their materiality within each sector.
Inflection Point considers the exposure of companies to secular trends that are heavily influencing corporate performance and that are expected to do so over the medium-to-long-term. These megatrends include: the rise of the world’s emerging markets; increasing natural resource demand; the growing political will to address climate change; changing consumer preference toward responsible consumption; digitalisation of business models across sectors; and demand for smart and sustainable infrastructure.
What we do
Inflection Point serves as La Française Group’s hub for sustainable investment research. This includes analysis of environmental, social and governance (ESG) metrics that can drive corporate performance, as well as other intangible factors such as innovation capacity, adaptability and responsiveness.
Inflection Point provides this non-financial data, analysis and insight to La Française Group’s portfolio managers, across equity, fixed income and listed real estate. Its research provides an additional layer of analysis to inform and guide investment decisions, with a view to delivering superior risk-adjusted returns.
In addition, Inflection Point advises on a number of specialist thematic funds and investment solutions offered by La Française Group.
Climate change insight
Inflection Point and La Française are committed to supporting the low energy transition by assessing climate risks and opportunities in investment decisions. Inflection Point provides data collection, analysis, research and advisory services in support of this objective.
La Française Inflection Point carries out engagement with investee companies on strategic, financial and ESG issues, both directly and in cooperation with other investors. Inflection Point advises on engagement policy and manages individual engagements.
ESG and carbon reporting
The team supports the wider group with its ESG reporting to stakeholders and regulators. These include the Group’s compliance with the French Article 173 regulation, which requires investors to explain how they take ESG factors and climate impact into account.