Since we conduct close to 300 corporate meetings per year on various field trips, the basic conditions of the relevant subjects can be understood and evaluated in terms of quality – and it is also possible to evaluate the management. In addition, the interviews specifically ask questions about ESG criteria, so that relevant factors can be qualified at an early stage. Due to the visits in the most important investments regions North America, Europe and Asia, we are closer to market activities and can react swiftly to imminent developments.

Our process at a glance:

• Corporate visits
• Conference visits
• Qualitative company analysis 
• Market data analysis
• Targeted integration of ESG criteria and questions about the company

An extensive data bank has been built up for the continuous analysis of companies over the course of TBF’s history. All data required to calculate corporate values and target path for focused share and bond strategies is consulted as part of the clearly structured investment process. Each single security selection is preceded by a fundamental analysis as well as a data bank-assisted analysis. In addition, each Companies through TBF's ESG department with appropriate ESG criteria assessed.

Our process at a glance:

• Quantitative assessment of individual companies according to balance sheet, operative margin, free cash-flow and further key figures
• Non-financial criteria (ESG) are added to the quantitative assessment: MSCI research, compliance with standards, observation of controversy, ESG rating
• Calculation of a fair value for share investments including ESG input
• Filtering of corporate action and special situations for shares and bonds

As soon as an individual security has passed through the qualitative and quantitative analysis process and has received investment approval, portfolio management can use this security. A decision is then made which fund mandate is allocated to this security with which weighting based on this opportunity/risk profile. All securities are monitored constantly should an investment be made.

Our process at a glance:

• Weighting of strategies and asset classes according to the respective fund mandate
• Allocation of target investments based on research results (financial and non-financial (ESG) criteria are equally weighted)
• Ongoing pre-check of portfolio with regard to risk management and regulatory requirements

Risk management with no ifs, no buts: in addition to the in-house software for company analysis, the Q-factor that has been tested over many years plays a significant role. The Q-factor is a synthetic index that is used to actively manage risk and is integrated in the in-house trading system. Based on quantitative and qualitative factors, signals are generated to adjust the investment degree, hedging and individual security allocation. The result is a clear and sustainable risk management that can be implemented according to the investment strategy. In addition, the developments of the companies with regard to the ESG criteria are continuously monitored, so that a reaction can take place at short notice if they deteriorate.

Our process at a glance:

• Strict sale on reaching target prices or when the updated analysis no longer shows any potential 
• On-going monitoring of creditworthiness regarding bonds 
• The Q-factor is used to determine the location and hedging
• Daily calculation of default probabilities
• Ongoing ESG screening of all investments and corresponding de-investment in the event of negative development

Even at TBF with such a clearly defined investment process, it is in the end the people who bear the responsibility. That is why all information is shared between our fund managers. TBF Portfolio Management is exclusively staffed with experts that bring an average of over 20 years’ experience to the table. In addition, TBF pursues a philosophy: You are only strong when you are part of a team. For this reason, the fund managers meet on a daily basis and exchange advice. This means that each fund mandate benefits from the individual’s expertise.

Our process at a glance:

• Main responsibility for managing the portfolio
• On-going monitoring of the portfolio construction 
• Check and compare results from research and risk management
• Macro-view of respective areas of responsibility
• Ongoing monitoring with ESG analyst