Annual Report 2017

Rothschild & Co | Annual Report 2017

1. Overview

4. Financial statements

Management report

2. Business review

Our expertise in investment solutions

Our goal-driven approach aims to grasp its clients’ needs

and offer suitable investment solutions through three

innovative offers:

• Open architecture

• R Inside Investment Solutions

• InRIS and ESSOR delegated asset management.

The open-architecture approach aims to select the best

managers on the major global financial markets, whether in

long-only or alternative strategies. Its investment philosophy

is based on four pillars: a real open architecture, active

management, the quest for excellence, and robust risk

control. Our specialised teams show international expertise in

accessing the best managers, developing tailored products,

and seizing the best opportunities on the markets. Our funds

of funds are monitored constantly for the special risks they

entail, with an objective of creating value. With this in mind,

we offer open-ended funds, separately managed accounts,

funds of hedge funds, and long-only multi-management for

institutional clients.

In a complex regulatory environment and given the crucial

need for diversification, we offer R Inside, a tailored offering

of stock-picking and investment management in an

open-architecture environment. Our

à la carte

modules range

from advisory to partnership to white-label products. Under

this approach, we undertake the necessary due diligence,

select the funds, allocate assets, construct model portfolios,

place orders, publish performance reports, and handle

marketing. This makes the entire chain of value of the

open-architecture platform available to our partners.

Rothschild Asset Management’s InRIS and ESSOR platform

of selected asset management offers our clients access

to the expertise of carefully selected high-quality long-only

and alternative managers who deploy their strategies in a

UCITS format. This truly innovative platform offers additional

diversification bricks to our clients seeking absolute returns

that are decorrelated from traditional asset classes. These

are long-term exclusive and conviction-based partnerships.

Our team is backed by the Group’s know-how and

fund-selection network in detecting talented and

complementary managers who have thus far been absent

from the UCITS universe. Our products offer all the

standards, involvement and thoroughness in the areas

of transparency, easy-to-understand performance reports,

and client service.

In 2017, the increase in assets under management in

alternative UCITS funds continues and the InRIS platform

has launched a new product, R Perdurance Market Neutral

Fund, in Partnership with the fund management team

Perdurance Asset Management and the managed account

platform Innocap. Following the merger with the Compagnie

Financière Martin Maurel, we now integrate to our offer the

ESSOR fund range, notably specialised in the United States

and emerging markets.