Sycomore Next Generation (SNG) launched in 2019 is an SRI-labelled balanced fund.
SNG's approach consists in filtering the universe for the best SPICE scores (rating above 2.5 out of 5) and selecting stocks and bonds based on 3 themes:
Sycomore Selection Credit (SSC) is Sycomore AM's corporate-bond SRI-labelled fund.
SSC excludes companies that are too risky on 6 key criteria:
1. Environmental risk (upcoming regulations, potential fines, litigation provisions, etc.)
2. Quality of social climate (known social conflicts, abnormally high rates of turnover or absenteeism, etc.)
3. Reputation risk (controversies, activities in highly-sensitive areas or businesses, etc.)
4. Financial communication risk (results vs guidance history, openness and availability to meet with investors, etc.)
5. Accounting risk (independence of auditors, complicated and obscure accounting, etc.)
6. Bondholder risk (aggressive leverage or share buyback, debt financing of dividend, etc.)
The remaining assets invested in corporate bonds integrate ESG criteria but are not SRI-labelled.
Finally, the following exclusion policies apply:
1. Exclusion of all controversial weapons for all investments
In line with the Oslo and Ottawa conventions, Sycomore AM excludes any investment in controversial weapons.
2. Exclusion policy for SRI funds
Please see LEI 04.1.