About the iPRO Growth Fund (or IGF), our position is very clear. Maybe it seems not to be the best investment strategy on the market, in view of international events, this is the one we chose for almost 30 years now.
The assets of the IGF fund are invested in a diversified basket of equities local (positioned in key sectors) and foreign funds divided between:
- global equity funds, invested in particular in the United States and in Asia
- “frontier” equity funds, particularly in Africa
- and finally specialized funds: ESG ( Environmental, Social, and Governance criteria), Artificial Intelligence, Asia
The fund seeks to achieve its objective by following a disciplined approach. And by investing only in stocks offering growth constant benefits, evaluations attractive, and fundamentals solid.
1. An investment strategy based on research and analysis
Above all, the research and analysis are at the heart of our investment strategy. We start by looking at both the fundamentals and the market sentiment.
This is explained by a 3-step approach, implemented for each asset class. Here is the exhaustive list.
a) Review of the prevailing macroeconomic outlook
We take a look at the outlook macroeconomic aspects of the asset class. At the same time, we pay attention to major economic trends.
Our experts then establish a menu of the investment landscape for the asset class considered, and complete it by identifying the different sub-sectors.
Finally, a more in-depth microeconomic analysis will be carried out. This in order to assess the attractiveness of each of the different sub-sectors of the asset class.
b) Formulation of a preliminary sector allocation
By having a preview of sectors on which to focus our strategies, we then formulate a first sector allocation.
The allocation will obviously take into account the current point in the economic cycle. The focus is on the sectors that are expected to perform well during this particular phase of the cycle. This can be for example regional, sectoral, or even based on the investment style according to the asset class.
The objective of the allocation will be, at a minimum, to provide performance superior to any diversified portfolio invested in the asset class.
This is achieved by overweighting the sectors/regions of the portfolio in which we have an optimistic view, and by underweighting those where we are not particularly optimistic.
c) Continuous monitoring for the best investment strategy
We follow each of our strategies regularly. Some every day, and others at least once a week.
The assessment is carried out for the purpose of monitoring performance strategies. Both in relation to current market trends and to changing prospects.
In the event of a sudden change in the economic outlook or serious unfavorable performance of any strategy, special ad hoc analysis and investment committees are organized.
2. Local investment: sector allocation and stock selection
a) The landscape of the local asset class
For the record, the local stock market is made up of:
- of an official market (MO)
- and a development and enterprise market (DEM), with shares classified in no less than 8 categories.
b) Our investment strategy and it is logic
The iPRO Investment Professionals Group manages local stocks with the main objective of outperforming SEMTRI.
For this, we rely on a combination of expertise from our teams. Our various traders, financial analysts, and fund managers cover the entire spectrum of macro and microanalysis.
Our ability to outperform the market lies in a more pragmatic sector allocation and better stock selection. For this, we focus on growth sectors only and select companies that have solid fundamentals.
c) Sector allocation: macroeconomic and econometric forecasts
Our team is made up of experts highly skilled and experienced. They constantly monitor the macroeconomic environment of the Mauritian economy.
We believe in the fact that an investment Successful results from a thorough understanding of these basic principles and their underlying relationship to business cycles. An approach like ours usually focuses on specific pillars/sectors of the economy. And is moving towards specific actions within the specific industry.
Growth sectors with good prospects are always preferred to less bright.
This macroeconomic research forms the basis of the sector allocation of our portfolio. While we reserve our various econometric models more specifically for our forecasts.
Ultimately, increased exposure to privileged sectors ensures that our local portfolios outperform major local indices over the long term.
d) Stock selection: financial analysis and stock valuation
Over the years, we have been able to compile an impressive amount of information on these local businesses.
Our financial analysis is based on a list of fundamentals detailed. We scan the company through its “skeleton” to assess its progress, health, etc.
3. Our areas of control and analysis
a) Monitoring market developments
Market dynamics and the macro / microeconomic environment are changing rapidly in this highly competitive world. At iPRO Investment Professionals, we are fully aware of this. Therefore, let’s watch and let’s update regularly our assessments based on these changes.
We compare and assess a company’s performance against others in its industry and the market as a whole.
As a result, only companies that:
- correspond to our philosophy investment
- present growth prospects interesting
are selected to be integrated into the local portfolio.
b) The long-term vision
iPRO Investment Professionals uses traditional fundamental analysis on the one hand and quantitative metrics on the other. To determine if a company with a sustainable strategy meets our rigorous investment criteria.
In fact, we are looking for current or future leaders in their markets. In other words, companies whose financial strength and strategic vision offer maximum potential for long-term growth.
To do this, we assess the prospects of a company in terms of:
- profit and revenue growth
- cash flow generation
- expansion of margins
- as well as their track record of meeting or exceeding analyst expectations
c) The adaptability of managers
Our long-term best investment strategy also involves knowing the people behind the companies well. That is why we also assess the management of these companies. As well as their corporate governance, especially in difficult times.
We observe for example the capacity management to adapt to changing market conditions. With always strict internal controls, able to create shareholder value.
Our goals are always to identify top-quality companies. The future dominant market leaders. And especially those that trade below the projected value.
d) The best time to buy
When we detect finally target buying ranges, we use technical analysis to determine the best time to buy.
As experienced market technicians, we also analyze accumulation and distribution models. And we pay special attention to the crossovers of various moving averages.
Our disciplined approach eliminates therefore the emotion factor in our strategic choices. And this is vital in financial management. We already told you about it in our article How to invest your money well: our 5 golden rules.
To conclude, our best investment strategy is first and foremost based on our mastery of various tools. Then on our ability to study and analyze the financial markets. Finally, we add all our technical and commercial know-how. That acquired for almost 30 years in the management of our client’s portfolios.
Remember: your future deserves the best!