Colville Capital Partners has just created a unit of its Silver Autonomie fund for individuals. Until now reserved for institutional investors, this fund is one of three managed by the company, which has nearly €500 million in assets and 8 employees. In this Strategy Interview, the brothers Jacques-Antoine and Mathieu Philippe, founders and directors of Colville, explain the origin of Silver Autonomie, their investment approach and the theme of ageing.
Jacques-Antoine and Mathieu Philippe, what was your background before creating Colville Capital Partners?
Mathieu Philippe: I graduated from HEC Paris in 2005 and have held a master's degree in philosophy from the University of Paris I - Sorbonne since 2003. I have about 15 years of experience in investment. I started my career in 2005 at Merrill Lynch in London as an analyst in the Capital Investment department. I then joined Audley Capital in London in 2007 as an investment manager in charge of equity investments in listed companies. I was then keen to develop an entrepreneurial venture with Jacques-Antoine based on the best practices we had observed during our careers, both in terms of management and client relations.
Jacques-Antoine Philippe : I graduated from Sciences Po-Paris in 2003 and received a scholarship from the French Ministry of Foreign Affairs to attend the LLM (Master of Laws) program at the University of Chicago in 2004. I have about 15 years of professional experience in the financial sector. I started my career in 2005 at Merrill Lynch in London as an investment banking analyst. In June 2007, I joined the Banque Degroof Group in Paris where I was responsible for the institutional asset management business in France. Since 2015, I have been developing the Colville Group alongside my brother.
In France, in 2050, more than 1 in 3 people will be over 60 years old, compared to 1 in 5 in 2005.
Why did you launch a fund dedicated to the Silver Economy?
The ageing of the population is an unavoidable demographic trend. In France, in 2050, more than 1 in 3 people will be over 60 years old, compared to 1 in 5 in 2005. These elderly people have specific health needs and consumption patterns.
When the fund was launched in 2015, several funds were investing in the third age and Silver Economy. However, none of them dealt with the fourth age and related issues.
Why did you focus on the theme of dependency and home care?
We created Silver Autonomie at the initiative of the Caisse de Prévoyance des Agents de la Sécurité Sociale et Assimilés (CAPSSA). Dependency and home care for seniors are major social issues. Through this fund, we want to invest in stocks that have a positive impact on improving the quality of life of seniors by enabling them to live better and more independently. To this end, we have identified four investment themes: preventing, diagnosing and treating age-related illnesses, adapting the home environment to reduce dependency, remaining independent through prostheses and surgery, and promoting well-being through consumption.
You have just created a unit in your Silver Autonomie fund for retail clients. Why did you do this?
We have received requests from distribution networks wishing to offer our expertise to their customers. It is open to individuals since August 20th.
Investment in health and technology infrastructure should continue to be a priority.
This investment theme has been buoyant in recent years. Will it remain so?
The fund benefits from long-term structural trends. The ageing of the world's population, the increase in healthcare spending in emerging countries, the contribution of digital technology to healthcare and the development of diagnostics and biological drugs are all major trends in which our companies are key players. The prospects for Silver Autonomie are attractive. The companies in our portfolio have demonstrated the essential nature of their activity and have proved in the past their strong capacity to adapt. The pandemic has led to a global awareness of health-related issues. Investment in healthcare and technology infrastructure should continue to be a priority.
How do you base your outlook on demographic and consumer trends?
We are stock-pickers and conviction managers. We follow a bottom-up approach based on the analysis of company fundamentals. We have macro convictions based on our readings and our participation in conferences. We do not develop macro-economic analysis internally.
Dassault Systèmes is the top position in the portfolio with 7.2% of net assets, this company provides 3D simulations for surgery, prosthetics and medicine.
Which stocks do you prefer? In which geographical areas?
Our investment universe consists of the best companies in the world that meet our criteria: attractive business, outstanding management, attractive capital allocation opportunities, reasonable valuation and responsible behaviour. The fund is 100% invested in Europe and North America.
Dassault Systèmes is the top position in the portfolio with 7.2% of net assets, this company provides 3D simulations for surgery, prosthetics and medicine. Through its subsidiary Medidata, the company is a leading player in the digital management of clinical trials. The company is a key player in the digital transformation of the pharmaceutical sector.
Danaher with 6.2% of net assets, provides equipment for diagnostics and biological and laboratory medicine. Through its subsidiaries Beckman Coulter and IDT, Danaher has been a key player in the fight against Covid by being the leading supplier of tests in the US.
How does your fund respond to environmental, social and climate constraints?
We believe that responsible investment should reinforce our convictions and our fundamental analysis. All our funds have obtained the SRI label. We wanted to have an ESG process that did not take away the responsibility of our management team. We therefore carry out all ESG research in-house.
We have formalised Silver Autonomie's ESG approach through the implementation of a rating based on the analysis of ESG criteria. In addition, for each company in the portfolio, we draw up a controversy report. Finally, we have implemented a voting policy that includes ESG criteria and we are committed to voting at all the general meetings of the companies in our portfolio.
You're generally discreet. Why is that?
Our priority is customer satisfaction. We want to be focused on our management, our clients and the quality of our service. Our development is mainly by word of mouth thanks to the trust of many large institutional clients.
What are your projects?
Our approach as a responsible investor is one of continuous improvement. Our funds fall under section 8 of the SFDR (Sustainable Finance Disclosure Rule). We are currently quantifying our ESG approach through performance indicators in order to fall under Article 9. We aim to internalise our voting process at companies' general meetings. Finally, we are considering ways to increase the impact of our investments, in particular by strengthening our dialogue with companies and other stakeholders.
In addition, Colville is committed to a foundation currently being created. We are involved with the Imagine Institute via a pledge of a minimum of €200,000 spread over 5 years, which may be increased depending on the evolution of the group's assets and other philanthropic projects. The Colville Foundation has also made a commitment to the HEC Foundation via a donation of €100,000.
On the commercial side, our ambition is to continue our development in France, Benelux, Switzerland and Monaco.
What about recruitment?
We plan to strengthen our sales team. We have also completed our management team with the recruitment of a Senior Associate in August 2021.