In our view, in the long term, shares provide a better return on investment than other asset classes. Share prices rise as businesses succeed. We like to think that, instead of investing in shares, we are investing in the companies behind them.
Fourton’s investment philosophy aims to identify beneficial risk-return ratios in the medium and long term and, in the short term, time purchases and sales correctly. We make long-term investments; on average, our investment horizon is between 5 and 10 years. Therefore, the correct selection of the investments is essential, and it is based on the portfolio manager’s extensive knowledge of the underlying companies. We believe that this approach to investing offers the best possible return on our clients’ investments.
Above all, the cornerstones of our investment philosophy are as follows:
- The company’s business is growing organically and it is profitable
- The company generates a good return on invested capital
- The company must be a leader in their industry or region; we especially favour situations where the barriers to entry are high
- Low debt is a plus
- The business model is easy to understand
We offer actively managed funds and asset management. Our funds are not tied to indexes. We are not resellers; all our investment products are developed in-house. This can also be seen in our transparent and competitive pricing.
Our way of working
Our share selection is based on a qualitative assessment of the companies, based on both an analysis of the financial statements and company visits and meetings. We want to understand and see first-hand what our portfolio companies do and how they do it. In practice, this means that our investment team travels a lot, meeting both existing and potential portfolio investments.
We only invest in companies in which we would invest our own money. In fact, our portfolio managers are shareholders in the funds they manage.
Fourton is a member of Finsif (Finland’s Sustainable Investment Forum). Finsif complies with UN’s Principles for Responsible Investment. Fourton also claims compliance with the CFA Institute Code of Ethics and Standards of Professional Conduct. This claim has not been verified by CFA Institute. The international CFA (Chartered Financial Analyst) programme aims to promote ethical and professional standards in the investment industry.
We want to offer our clients the opportunity to make a sustainable impact with their investment choices. We believe that sustainable investments improve the risk-return ratio. According to our fundamental principles, we do not invest in the tobacco, alcohol, gambling or weapons industries. When choosing investments, we take into account the environmental, social and corporate governance (ESG) factors. We study these factors based on sustainability reports published by companies and discuss them during our meetings with the company management. We follow up on the rectification of any possible shortcomings. If the ESG conflict cannot be rectified, the investment may be abandoned.
Fourton is not an active participant in the annual general meetings of its portfolio investments.