Investment Process

SYSTEMATIC INVESTING

To meet our clients’ long-term savings objectives, our investment management team adopts an active approach based on independent and proprietary research.

 

A structured investment process and philosophy is mandatory to see chances and weight risk. Therefore all investment funds managed by Independent Capital Group AG are based on proven quantitative multi-factor models that are solely based on unemotional systematic and methodological processes.

 

Sustainability is an integrated part of the ICG investment process. This is done in a pragmatic sustainable way. This means considering sustainability criteria without losing sight for return.

Data_Investment Process

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.”

― Charlie Munger

Investment Process

Key Characteristics

Our investment process is based on a quantitative approach to find the best-in-class companies

Non-discretionary stock selection

Our investment process is based on facts and not on stories

Non-predictive approach with majority of the analysis based on historical data

Our investment process is standardized and objective

Consistent methodological process which has been backtested successfully

Our investment process has a portfolio view

Balanced portfolio instead of single stock bets or market cap weightings

Investment Process

ICG Alpha Scorecard

0101_Investment Process

To better measure the relative attractiveness of companies in a specific sub-sector we may use sub-sector IC Alpha Scorecards to facilitate the investment decision. The ICG Alpha Scorecard is a quantitative and qualitative screening scorecard that pinpoints sector champions with strong economic “moat” based on different variables. The approach helps to identify companies with a relatively good track record in different key variables.

 

The ICG Alpha Scorecard is based on a multiple of variables (statistically robust dependence of performance to scorecard variables). Variables are based on a mix of financial- and operational figures as well as ESG- and soft factors. The majority of variables are based on historical figures while the rest of variables are mostly dynamic.

 

The investment management team selects the top companies based on the ICG Alpha Scorecard ranking. All Positions are usually equally weighted, however we may reduce the weight or even exclude a company on exceptionally events.

“In the short run, the market is a voting machine. In the long run, it is a weighing machine.”

― Benjamin Graham

Investment Process

Sustainable Investing

Sustainability is an integrated part of the ICG investment process. This is done in a pragmatic sustainable way. This means considering sustainability criteria without losing sight for return. The Sustainability (ESG) part makes at least 20% of the total scores of the ICG Alpha Scorecard. We report an ESG Quarterly Report with score results from our ICG Alpha Scorecard as well as independent ESG rating agencies

You can download our ESG Quarterly reports by clicking the respective link of the fund:

 

Energy Champions Fund

 

Industrial Metals Champions Fund

 

Precious Metals Champions Fund

 

Feel free to contact us if you wish more information about our sustainable investment approach.

Investment Process

ICG Database

To properly analyse companies we need a lot of standardized and easy available data. ICG developed a proprietary data base to better analyse financial and operational figures. Every year we have a deep analysis of the annual reports, 10-K and financial statements of these companies to find out all the relevant metrics according our definition. The proprietary data base has meanwhile over 300’000 data points.

Investment Process

ICG Risk Factor

ICG applies a rule based systematic approach to define the current attractiveness of the main sub-sectors: energy, industrial metals, precious metals and agriculture for equities and commodities. For this the ICG team developed a dynamic risk factor model for each sub-sector with over 100 variables to better get a sentiment about the sub-sector. The risk factor model includes several financial metrics about the current macro situation, the market risk sentiment, inflation, geopolitical risks, currencies, commodity fundamentals, inventories, valuations, leverage, technical and many more and is updated weekly. Thanks to the risk factor model the investment management team can adjust the exposure of each sub-sector and increase or reduce the market risk.

Risk_Investment Process

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”

― William Arthur Ward
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