Gesconsult

Good Governance RV USA

The Good Governance Fund systematically selects the 100 companies that rank the highest in terms of quality of Governance within the S&P500 universe ex tobacco, defence, and oil companies.

Governance is measured with a proprietary methodology, the Stewardship model, which has been developed by Professor Cossin of IMD in Lausanne, Switzerland over the last 10 years. It is based on the systematic analysis of the language used by the companies in their 10-K reports.

The “investment philosophy” of the model, through the systematic selection of the 100 companies in the S&P 500 most aligned with the principles of good governance, is to identify those with the highest quality of management teams and Boards of Directors. This higher quality of corporate governance teams and processes results in a clearly superior performance of these companies compared to the index in the medium and long term.

The model has been backtested (2016 to 2018), in paper-trading format and then implemented in a SICAV RAIF format since February 2019. The model has outperformed the S&P 500 Total Return by over 4-5% p.a. (net) on average.

Main Characteristics

Full ESG compliant approach with a main focus on the ‘G’ element of S&P 500 companies; rated as top-quartile by Impact Cubed, an independent rating company.

Systematic model with quarterly re-balancing.

Documentation [Spanish]