Our investment approach

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.

Thematic analysis

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.