Europa Clear Bank's Developed Markets Equity Fund invests in equities of listed companies that are primarily active in developed countries. This strategy is aimed at long-term asset growth within the set risk profile. We combine internal portfolio management with the selection of external managers. We manage the majority of the assets ourselves. We have outsourced the investment strategies for which we lack the knowledge or experience or which require computer systems
we do not have.
The main feature of the portfolio is the combination of three investing disciplines:
◩ Quantitative investing
◩ Fundamental investing
◩ Focus investing
Most of the money goes to quantitative investing. Based on the selection models we have developed in house, we systematically invest that money
worldwide in a relatively large number of companies. As a fundamental investor, we select equities based on in-depth fundamental company analyses and industry analyses. Our focus investors concentrate on medium-sized companies. We take significant stakes in companies on the basis of in-depth company analyses. Because of the concentrated nature of the portfolio, the return from focus investing may deviate more from the benchmark return than
that of the other two disciplines. We take ESG factors (environmental, social and governance) into account in the investment process for all three disci-
plines. This is evident from the voting policy, the exclusion policy, the selection of equities and the assessment of risk.
We have spread the capital stock managed by us across the three disciplines and their underlying investment strategies. In doing so we reduce the risk in the overall portfolio and increase the return per unit of active risk. Our goal in this is a stable active return, continuity in investing, adequate capacity to invest and ESG integration. Every investment strategy within the fund selects equities from a broad universe and distinguishes itself from other strategies by its investment philosophy and/or the market segment.