Cyriaque Dailland from Sanso Investment Solutions is our Fund Selector of the Month

Cyriaque started his career as a fund selector with La Française des Placements in 2008. In 2009, he joined Convictions Asset Management as an analyst-manager. He specialises in asset allocation. Cyriaque graduated from the Master 2 Finance programme specialized in Financial Markets at IAE Clermont Auvergne.

When and how did you start your career in the financial sector?

After my High School diploma, I obtained a double Bachelor in History and Cinema. After that, I spent one year at Kingston University thanks to Erasmus program. I came back to France to study financial market,  first at Lyon 2 University and than at Clermont-Ferrand University. I was interested in macroeconomic subjects in particular. After my studies, I started my career as a fund selector for La Française des Placements in 2008, a French “boutique” famous in the 2000s. In their multi-asset team, I was responsible for fund picking. This was a very useful experience as it unabled me to meet a lot of portfolio managers. Moreover, we could invest in all assets (equity, bond, credit, forex…). It was a very good experience.  

What does a typical workday look like for you? How do you organize your time?

My workday always begins with an update on markets, especially regarding the United States and Asia. I believe it is very important to have a precise analysis on market mover, trends, hard data… I start the day more as an asset allocator than a fund selector. In the second part of the day, I can meet portfolio managers or search new investments. In general, I’d rather make up me mind on what is worth investing in, before searching for a fund. 

What aspects do you consider most important when selecting a fund for a portfolio?

To be a good fund selector, I think you must be curious and objective. Indeed, it is important to be always aware of new trends, new thematics or new ways to manage a portfolio. At the same time, it is necessary to check everything. For instance, when an equity portfolio manager claims that his fund invests in small French firms, I want to check that this aspect of his portfolio appears in the factsheet but also in my quantitative analysis. 

What is the current asset allocation of your model portfolios?

We are neutral on equity, sovereign and corporate. We are overweight on cash. Concerning equity markets, we prefer the United States than Europe. Regarding sovereign markets, we go for emerging local currency and the United States. For credit markets, we dislike investment-grade corporate bonds. Finally, we like the yen and emerging currencies. 

What mistakes are most frequently made in fund selection?

I think the most common mistake is to believe that the speech of the portfolio manager reflects the exact image of his portfolio. You should use quantitative tools to check that the presentation is coherent with the reality.  

What was the biggest challenge you faced as a selector?

2022 was a complicated year to apprehend as we suffer several sector rotations, as well as a strong correlation of asset classes. In this context, it was complicated to manage the alpha on equity funds, as well as bond funds.