Vision & strategy

Investment Criteria

The Investment Charter covers the first part of SFPIM’s activities. The other two sections, which pertain to the public holding company function and to operations carried out on behalf of the State “under delegated authority” respectively, are explained in separate documents and are not published.

1. Context

SFPIM is a public interest company whose share capital is held fully (100%) by the State.

SFPIM came into being from the merger of the Federal Investment Company with the Federal Holding Company.

One of the aims of this merger was to make the State’s investment policy more consistent and more effective through a proactive policy on this front by SFPIM.

To this end, SFPIM established an Investment Charter that defines the framework of each Investment by SFPIM and sets out the applicable terms and conditions on which SFPIM relies to make, value, manage and monitor investments.

The object of the charter is to streamline the consistency and effectiveness of such investments in SFPIM’s investment activity, based on:

  • an identification of sectors considered strategic, objectives and investment criteria;
  • a better definition of the role of SFPIM and of its relations with its private partners;
  • and a clearer structure of the chain of responsibilities in the decision-making process.

SFPIM evaluates the objectives, strategy and implementation, as well as the working methods of the procedures established by the Charter every four years and as and when the need arises.

2. Investment Criteria

SFPIM also attaches great importance to corporate governance rules.

When investing in the aforementioned sectors, SFPIM always tries to strike the right balance between the financial and social aspects of the projects submitted to it. SFPIM also attaches great importance to corporate governance rules.

These objectives should ideally coincide, but the balance of interests between financial commitments and medium- and long-term societal objectives requires delicate choices to be made while respecting the overall objectives of SFPIM: the mission of SFPIM, which distinguishes it from other economic players in this context, is to strike a clear and responsible balance between these objectives.


2.1. Profitability

The profitability of the investment will obviously constitute an important facet of the investment decision. The following criteria in particular will be taken into account to that end:

  • a clear strategy;
  • details and the credibility of the company’s projections over three to five years, as included in the financial plan to be submitted to SFPIM;
  • a balance sheet structure in line with market practices;
  • the application of rules of sound individual, financial and commercial governance;
  • obtaining normal profitability;
  • the short-, medium- and long-term dividend policy.

2.2. Social added value

The objective of profitability must be nuanced, however, taking into account the social responsibility of SFPIM.

  • The following social criteria in particular will be considered when assessing a potential investment:
  • social utility of the goods and services produced;
  • employment aspects;
  • compliance with the legislation and general regulations;
  • ethical aspects: consideration of ethics, adoption of codes of good practice and effective compliance with these codes;
  • compliance with certain environmental aspects, such as participation in the protection of the environment and application of the precautionary principle in the face of environmental problems or a rational energy policy;
  • aspects linked to respect for the human rights of people affected by the company’s activities;
  • aspects linked to the rights of consumers.

2.3. Corporate governance

Finally, in developing its investment policy, SFPIM intends to be guided — and to make sure that the companies concerned are guided — by corporate governance principles.

In order to ensure that its various governing bodies assume their responsibilities towards the developed project, each investee company is asked to adopt certain principles of good governance, through internal ad hoc settlements or codes, as the case may be, based on clear and precise rules of procedure, as well as the transparency of such rules and of information, and to comply with said principles.

SFPIM also wishes to be represented by at least one person on the company’s management body so as to be able to participate in the industrial, financial and commercial management of the company in which it invests and to provide the necessary follow-up.

3. Assessment file

The company in which SFPIM considers investing will be asked to prepare a complete file, whereby the following points will be specified in each case:

  • presentation of the company, its partners and executives;
  • a financial plan over five years and specific comments on how the economic criteria will be met;
  • how the company takes social aspects into account;
  • the organisation of corporate governance and explanation of the company’s peculiar features that justify a possible deviation from certain principles or an adjustment of their application.

This file is prepared in six original counterparts and handed to the managing director of SFPIM, whereupon the strategic committee of SFPIM will formulate an opinion on the file. The final decision lies with the board of directors.

Neither the Charter nor this notice creates any additional obligations on the part of SFPIM, its directors or its executives in relation to those arising from the applicable legal texts, nor can they be interpreted in that sense.