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INVESTMENT PROCESS

handmade by TBF

From the idea right through to its implementation

The following applies to all TBF strategies: from the investment idea right through to its implementation, each individual security completes the same investment process. The decision as to which strategy this security will be assigned only takes place during the on-going process. Until that decision has been made, the focus is solely on the company and its possible developments.

Investment ideas
Research
Portfolio construction
Risk management
Fund management
Individual solutions

Investment ideas

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

Active fund management

Various field trips, company visits and conferences form the sound basis of our expertise – an extract here

Israel

Technology conference, company visits, meetings

Germany

Company visits

Germany

Investor conference, meetings

Japan

Investor conference and company visits

Germany

Investor conference, meetings

Germany

Corporate visits

Germany

Investor conference, meetings

China, Australia

Company visits

USA

Company visits in Silicon Valley

USA

Technology conference, company visits, meetings

USA

Technology conference

 

Sweden

Company visits

 

Sweden

Investor conference

 

USA

Technology conference, company visits, meetings

 

USA

Mining conferenz, Cross-Sector-Conferenz

 

Germany

Company visits

Japan

Investor conference and company visits

 

USA

Company visits

 

Australia / Singapore

Technology conference, company visits, meetings

 

Germany

Investor conference, meetings

 

England

Technology conference, company visits, meetings

 

Japan

Investor conference, company visits

 

USA

Technology conference, company visits, meetings

 

USA / Canada

Conference, company visits, meetings

Research

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

Our basis

In-house company data bank and risk models tested over many years

Portfolio construction

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

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

The Q-factor

The risk models are applied to determine the market phases and the dynamic (partial) hedging of our funds.

Fund Management

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

Individual solutions

Would you like to issue a special fund or a mutual fund with your label? We can also apply all strategies individually customised for you. Based on your investment objectives and wishes, we will gladly create your solution prepared according to the TBF investment process. The minimum volume depends on the complexity of the desired mandate.

Our process at a glance:

  • Collaborative conception based on the desired objectives
  • On-going monitoring of the required portfolio construction
  • Transparent and comprehensive reporting
  • Direct and competent contact partners