Lior Global Partners continues to expand. The management company's global macro fund, LIOR GP - Alpha Fundhas just received distribution approval from theAMF for its euro-denominated portion. Already distributed in the UK, Luxembourg and Monaco, it is now available to all French investors.
The two founders, Jeremy Touboul (pictured), former partner and manager at H2O AM, and Raphaël Remond, former managing director of State Street Banque in France, announced the creation of this new asset management company at the beginning of the year, which uses ESG criteria as a determining and differentiating factor in its investment process.
"I've always wanted to set up a company. At H2O AM, I learned a lot. I was ready to stand on my own two feet. Timing was key. What's more, I could see the world changing, moving towards greater sustainability. So I said to myself that I had to bring something new, a global macro sustainable approach, which adds value", explains Jeremy Touboul, who received a AAA rating from Citywire in 2019.
The first core global macro fund
The UCITS LIOR GP - Alpha Fund was initially launched on March 15. The management team, led by Jeremy Touboul, takes directional, relative value and thematic positions in four asset classes: equities, sovereign bonds, credit and currencies. The fund aims for an annualized absolute "high single digit" performance over a three-year investment horizon, with a volatility target of between 5 and 10%.
"We're entering a cycle conducive to global macro management," says Jeremy Touboul. "We like to play the reflation theme, because we think you can't inject that much money into the system without having an impact on inflation. We are positive on equities and high-yield currencies. As for sector allocation, "for the time being, we like to position ourselves in banks and insurance companies outside the US. At the moment, the rest of the world is tending to outperform. Emerging market and European equities will outperform US equities".
Joining Jeremy Touboul on the management team is Pierre Jean Rouleau. He was previously head of macro-trading at Banque Pictet in North America. Gad Moyal is also fund manager. He developed his expertise in data analysis at Rothschild AM and Société Générale CIB. He is in charge of developing quantitative instruments. Professors Helyette Geman and Lucrezia Reichlin and consultant Pascal Koenig complete the team in an advisory role.
Raphaël Remond ensures that the investment approach is balanced between creating value for customers and ESG.
In the coming months, this experienced team is set to expand. And with good reason: "We should be launching a second fund fairly soon. A bond and currency fund. Other funds should also be added to the range in the second or third quarter of next year. We're in talks to create products with different levels of volatility and still this ESG approach".
ESG as a risk indicator
Extra-financial criteria are at the heart of the management company's strategy. For Jeremy Touboul, "since 2016, there has been a wave of acceleration on ESG, and covid has only amplified the trend. Customers are demanding more and more green funds, for the responsibility and sustainability aspect. In the future, non-ESG funds will lose out to ESG funds".
The management team applies ESG filters to equities, sovereign bonds and credit for the global macro fund. It uses the Sustainalytics data provider. ESG scoring provides ESG risk scoring, a key element of Lior Global Partners' approach.
In addition, companies involved in coal, tobacco and controversial weapons are excluded. The management team follows the exclusions recommended by the United Nations Principles for Responsible Investment.
"ESG narrows the investment universe, and it's also a risk indicator. It allows us to see risks that are not financial, such as governance, social and environmental risks. And this applies to both companies and countries. It complements our global macro approach and our investment process, which is top-down discretionary," explains Jeremy Touboul. He believes that integrating ESG criteria to keep the risk-return trade-off aligned is relevant. "We wanted to take a strict approach to risk to avoid any slippage.
The LIOR GP - Alpha Fund is classified SFDR article 8. "For the moment, we are in the process of integrating ESG criteria, and we think this is the best approach in global macro".
Lior Global Partners places philanthropy at the heart of its values, donating 10% of profits to associations that help disadvantaged people.
"Philanthropy should become the norm. This would improve the current global situation. Governments no longer have the capacity to counterbalance inequalities. It's the role of corporations to offset inequalities and contribute to charities. When it comes to the environment, companies also have a very important role to play. Together, I think it's possible to improve things," emphasizes Jeremy Touboul.
This article appeared on Citywire