Dare not to be fashionable... to create value! For both wealth management and fund management, succumbing to the effects of fashion is not, and should not be, inevitable. 2019 saw the advent of passive mana- gement and the emergence of numerous thematic funds and, for many investors, there seemed to be no other alternative. Emergence of trends Importance of enlightenment The 1990s were marked by the develop- These mass movements are to the finan- ment of passive management products cial market what common opinion is to (replicas of stock market indices) or techno-philosophy: they should constantly be sub- logical, media, or telecom funds, followed ject to questioning and judgement. by the emerging country theme in the Our job is to invest for our clients over time. 2000s. As such, investment methods Economic fundamentals or market mo- appear to be governed by the tastes and vements, behavioural changes must be appetites specific to each era and are assessed with necessary hindsight, therefore conducive to the widespread one enthusiasm often behind bubbles. that generates trust, capable of crossing economic cycles. Behavioural finance, which measures the share of psychologicalfactors in inves- tors’ decisions, has scientifically analysed this phenomenon for a few years: rapid This isour goal... concentrations, widened imbalances, and abrupt reversals the repetition of which And the vocation of a company that has built ultimately destroys wealth creation. itself over time: not to be just in the moment but to seek the themes of tomorrow, to leave the consensual circle, to explain our choices clearly and independently. Faced with an increasing number of products and an increasingly complex environment, we must support our clients in their choices to save them time and keep their peace of mind in the long term. Each investment Each investment must, first and must, above all, be a conviction and the result of a global asset allocation and risk mana- foremost, be a conviction. gement strategy to support the investor in constructing their portfolio by avoiding fads which are always harmful. Alexandre Hezez, Group Richelieu Chief Investment Officer, Head of asset management Richelieu Gestion ACTIVITY REPORT 27