INVESTMENT PROCESS


Selection of shares
NCMF has a broad investment universe. We are not restricted by specific geographical regions, specific industries or sectors. We only make investments if our investment criteria are met.

NCMF has built a list of companies in which we wish to invest when the price is right. We continuously monitor this list and add and remove companies as part of an analysis process that can both identify new quality companies and companies which can no longer maintain this designation. Similarly, we continuously screen the stock markets for interesting investment opportunities among the group of companies that are more ordinary and that contain a potential event for narrowing the spread between market value and intrinsic business value over a short number of years.

The companies that make the list will be subjected to in-depth analysis. We review all publicly available legal company documentation, research documents, industry-specific documents, newspapers and magazines and other articles/written materials about the companies. In some cases, we interview board members, the management and employees of the companies. NCMF does not invest in any companies without understanding their business model, competitive situation and financial structure.

At the same time, we continuously monitor the companies in which we have invested. The fundamentals of these companies as well as their valuation are compared with the companies’ characteristics and criteria on the list. It is an iterative process that is disciplined, detailed and repetitive.

Consideration of the negative impact of investment decisions and advice on sustainability factors

NCMF does not integrate sustainability risks* in the company’s investment decisions and investment advice, and the company does not take into account the negative impact of investment decisions and investment advice on sustainability factors**.

The company does not consider the negative sustainability risks to be relevant as Nielsen Capital Management Fondsmæglerselskab A/S will only make its investment decisions and investment advice with a view to obtaining the highest possible return by investing in allowed financial products.

Accordingly, and in compliance with NCMF’s policy for integration of sustainability risks, NCMF has stated in its remuneration policy that the negative impact of investment decisions and/or investment advice on sustainability factors will not be taken into consideration, as NCMF does not consider sustainability risks to be relevant.

*In compliance with the ESG Disclosure Regulation***, the company understands sustainability risks to be environmental, social or governance events or circumstances which, if occurring, may have an actual or potential significant adverse effect on the value of an investment.

**In accordance with the stated Regulation, the company understands sustainability factors to be environmental, social and human resources issues regarding respect for human rights and anti-corruption and anti-bribery measures.

***Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector.

 
We regard patience as a virtue. We will demonstrate patience when we have invested in an undervalued company and the market price does not reflect the company’s intrinsic business value. We will also demonstrate patience when we find it more difficult to locate companies that meet our investment criteria.
Letter to Shareholders Nielsen Global Value 2006

 

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