In a world where rising inequalities are a threat to long-term growth, Sycomore AM believes that a company can only provide sustainable performance if the value it creates is shared among all stakeholders. Encouraged by this observation, Sycomore Shared Growth’s investment team – which draws on more than 15 years’ experience in researching predictive indicators for profitable and sustainable growth – has identified two key factors for success: the positive societal impact of products and services, and responsible corporate citizenship.
Frédéric Ponchon, Portfolio Manager of Sycomore Shared Growth explains: “We assess the societal impact of products and services by analysing a company’s turnover, business by business; this enables us to establish its degree of commitment to the Sustainable Development Goals (SDGs) or to a long-term societal challenge”.
By addressing societal challenges such as healthcare, the digitalisation of the economy, cybersecurity or food safety, companies are ensuring their own sustainable growth - itself a powerful lever for long-term economic and stock market performance.
“Clients, employees and investors are also, and above all, citizens who expect companies to contribute to meeting major societal needs” highlights Sara Carvalho de Oliveira, ESG Analyst. “Our assessment of corporate citizenship is based on seven criteria such as business ethics and corporate tax responsibility, sustainability leadership, and the existence of a mission statement that serves a social purpose”.
“Companies that have engaged on a mission combining economic profitability and a contribution to the common good enjoy a major competitive advantage” adds Frédéric Ponchon.
Sycomore Shared Growth now ranks alongside four other Sycomore AM funds that have been awarded the French government’s SRI Label: Sycomore Sélection Responsable, Sycomore Sélection Crédit, Sycomore Happy@Work and Sycomore Eco Solutions. It is a testimony to the quality of Sycomore AM’s investment capabilities and its leadership.
The Sycomore Shared Growth strategy currently manages assets just above €150 million. Sycomore AM’s SRI strategies weigh almost €3 billion, accounting for 38% of the firm’s overall assets under management. ESG analysis is integrated across all assets managed by the firm.