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Our Individuality
Our management philosophy: innovative
Today, the majority of investment proposals are indexed or based on funds specialized by sector or region. Our experience over 23 years, and more particularly over the last 10 years, has convinced us that this approach leads to poor performance and brings an unwanted fundamental bias to risk assessment.
Our investment strategy is thus radically different and is based on the combination of three basic principles:
- Managing with conviction aiming for absolute performance
- Global Management
- Flexible management
1. Managing with conviction aiming for absolute performance
Each TreeTop Asset Management fund (with the exception of patrimonial funds) is managed by an expert who selects a limited number of stocks from around the world that appear to offer the greatest potential for return. Each manager is responsible for the weighting of securities and the sectoral and geographic allocation…the principal sources of performance.
We are resolutely opposed to passive management that replicates or follows the composition of the market indices.
Membership of a company in an index is not a guarantee of its future performance, as recently demonstrated by General Motors or Citigroup, ex-members of the prestigious Dow Jones.
Our strategy is based on clear and substantiated convictions.
This translates into an investment approach where the choice of values is essential.
Our individual analysis of securities always addresses their prospects for growth relative to the development made by the stock market.
We carefully study various specialised broker reports but always maintaining our entrepreneurial vision, helping us to maintain a critical eye and better measure potential changes in value.
Finally, we practice sound selective diversification by sectors and regions in order to reduce and de-collerate risk, avoiding dispersion over too many values.
When a portfolio is sufficiently concentrated, the contribution to performance of a single security that doubles is truly significant, which is not the case for funds containing hundreds of securities. In the case of the SICAV TreeTop Convertible International, our approach has generated at least one great idea (+100% performance) per year, in very diverse regions and sectors:
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2. Global Management
Each manager has global expertise. This skill is essential for capitalizing on the opportunities generated by the extraordinary development of the global economy, especially in emerging countries.
This global and multi-sectoral perspective strengthens the analytical skills of our managers.
In addition, investing in a global manner reduces the overall risk of a portfolio due to the long-term de-correlation that can be observed between the different markets.
Though markets often react in the same direction in the short-term, the last decade has actually shown us important behavioural divergence in the medium-term, as illustrated in the last twelve years.
3. Flexible management
The art of management is to take good risks: to be invested in the right sector and, the right region at the right time. We are always looking for timely regional and sectoral investment themes. We like to be pioneers rather than followers, with an opportunistic spirit when market volatility leads to big undervaluation.
This fundamental rule is increased in the securities industry by the speed of future expectations’ changes. This inevitably creates phases of over- and under-valuation. There are always attractive investment opportunities at company, sector or regional level.
Our information policy: transparent
1. Transparency in the portfolios, performance and management policy
Our goal is to make it possible for any investor to know on a quarterly basis for each fund, the state of the portfolio, the allocation of performance and the principal reasons for our selection of investments. All of this data is available in the quarterly reports, in the Fund Library section of our website.
2. Transparency in a portfolio of several TreeTop funds
When you invest in several TreeTop funds through a Banque Degroof / TreeTop account, a quarterly consolidated statement of the content of the funds allows you to have a precise view of your investments.
Our fee structure: convergence of interest
1. Investment without fees in TreeTop funds
An investment in TreeTop funds through a Banque Degroof / TreeTop account allows you to avoid transaction fees (buy-sell), custody fees, and maintenance fees. However, you must of course pay taxes.
2. Convergence of interest with our investors
The majority of commissions paid to TreeTop Asset Management are linked to the performance of the SICAV. A very large part of the equity of our company is invested directly in its SICAV… TreeTop Asset Management is committed to its clients.
