The investment universe is built from:
1/ Best-in-Class rating (from AAA+ to CCC-): each company is rated relative to its sector in obtaining a Best-in-Class rating (from AAA+ to CCC-).
2/ Best-effort rating (from 1 start to 5): this takes into account trends in extra-financial ratings over the past four years, with the latest year overweighted.
We select shares presenting:
- a discount in relation to their industrial value
- sound financial health in line 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.
For the METROPOLE Euro SRI fund, we maintain an average ESG rating for the portfolio above that of Eurozone listed companies with a market capitalisation in excess of €5 billion (some 280 companies), after deduction of 20% of the lowest ratings.