Two "quantitative" criteria :

Two "quantitative" criteria based on an in-depth financial analysis of each company and the value of its assets.

• Net book value - this enables us to determine "minimum" value for the company. We pay particular attention to goodwill to make sure that the company's assets are realistically valued. This is what we refer to as the company's "scrap value".

• Enterprise value - Market capitalisation plus net debt. When compared to annual sales EV indicates whether the company is correctly valued by the market compared to its peer group.

Two "qualitative" criteria :

Two "qualitative" criteria, which provide additional information and serve to detect any events that might affect the value of the company's stock:

• Capital structure - we analyze this carefully sinc it plays a key role in determining the company’s value the event of a takeover bid, public exchange offer, withdrawal offer, or corporate event...
  

• Risk rating - this criteria asseses the company's balance sheet structure, the quality of its management team, the quality of financial disclosure, whether or not objectives are met and the comany's strategy.

Each criteria is given a rating (A, B, C or D) :

No holding can account for over 2% of a Fund's total assets unless it has at least two "A" ratings, one of which must be for risk, unless a higher stake is approved by the Investment Management Committee which includes Nathalie Pelras, Roland Fernet, Gérard Augustin-Normand.

Only securities listed in the "Richelieu Finance securities list" diffused each month are eligible for investments in open ended Funds.