Inflection Point Capital and Groupe La Française Celebrate 1st Anniversary of Innovative Joint Venture
IPCM is challenging mainstream institutional investors to think more strategically, says a leading global figure in the responsible investment community.
A YEAR into its joint venture with the 48€ billion* multi-class asset manager Groupe La Française (GLF), London-based Inflection Point Capital Management (IPCM) is challenging mainstream institutional investors to think more strategically, says a leading global figure in the responsible investment community.
Donald MacDonald, the first Chair of the United Nations-backed Principles for Responsible Investment (PRI) and current Chair of the Institutional Investors Group on Climate Change (IIGCC), explained: “IPCM and GLF are breaking new ground, asking new questions of institutional investors and reframing the debate around responsible investment.”
Mr MacDonald, a non-Executive Director at IPCM, added: “In forming their joint venture IPCM’s founder, Matthew Kiernan and GLF Chair Xavier Lepine, have sent the strongest of signals to the global investment market that now that the mainstreaming of responsible investment has been achieved, it is time to step up the quality.”
Mr MacDonald believes that a combination of product launches with assets now close to €900 million, “thought leadership” in the IPCM- defined Strategically Aware Investment (SAI) space and significant international outreach, sees IPCM strongly positioned to serve fast-changing investor needs in a volatile, global economy where systemic financial, natural and man-made risks are converging.
SAI equity product launch:
As GLF and IPCM prepare to mark their JV’s first anniversary with a gathering of UK pension funds and international asset owners in London on May 6th, the companies are four months into the launch of their first SAI- focused global equity product.
The UK investor dinner meeting in early May, convened with the UK’s National Association of Pension Funds (NAPF), will explore the idea of the climate- smart fiduciary, look at how the different UK political parties see sustainability challenges, and discuss the investor implications of an increasingly green economy in China. “A growing number of institutional investors globally are addressing the reality of the short-term investment impacts of the slow burning, systemic risks of climate change, resource depletion, water pressures and the supply chain challenges of a globalized economy.
IPCM and GLF’s SAI approach has been well-configured to address the challenges and opportunities brought by uncertainty and change,” Mr MacDonald concluded. IPCM’s Paris-based sister company, La Francaise Inflection Point (LFIP), is now running close to €900 million in assets against a line of SAI equity funds covering four geographic regions, namely; the Eurozone, Europe, Emerging Markets and Global.
The funds all integrate the 3 streams of analysis which lie at the heart of all of Inflection Point’s investment strategies:
•Traditional fundamental and quantitative financial analysis
•An in-depth, forward-looking assessment of companies’ strategic management capabilities
•An analysis of companies’ relative and absolute exposures to the competitive and commercial impacts of a range of secular global megatrends.
Over the next 60 days, Inflection Point will be launching a new strategy, specifically designed to help investors navigate both the risks and the opportunities being created by what is arguably the most far-reaching of those megatrends: climate change.
LFIP’s 8-person international investment team works in a seamless manner with IPCM’s analysts, who provide non-traditional investment analysis on over 900 companies, which is integrated with robust traditional financial analysis of stocks to create the SAI portfolios.
IPCM Founder Dr Matthew Kiernan explained: “We believe that Strategically Aware Investing, underpinned by an IPCM Five-Factor analytical model developed over more than 20 years, as well as a deep appreciation of both the policy implications and real economy impacts of critical global mega trends, is perfectly adapted to the real-world needs of today’s increasingly aware and demanding institutional asset owners. The old investment approaches have not been fundamentally modified for over 20 years, and are simply not fit-for-purpose for either today’s or tomorrow’s competitive environment.”