LFDE: 35 years of commitment
In July 1990, the economic report published by INSEE, the French National Institute for Statistics and Economic Research, began with the following sentence: “The rise in short-term interest rates has led to significant growth in liquid investments.”[1] Short-term interest rates had indeed exceeded 11.00% in francs at the end of 1989, while 10-year OATs,[2] bonds issued by the French Republic, were yielding close to 10%.
On 2 August 1990, Saddam Hussein decided to invade Kuwait in an attempt to settle a long-standing territorial dispute in his own fashion and, above all, to gain greater control over the micro-state’s abundant oil production, which had contributed to pushing the price of oil below 14 dollars a barrel in June of that year. In January 1991, a coalition of 35 nations led by the United States launched Operation Desert Storm, which quickly brought the war to an end.
This was also the year that La Financière de l’Échiquier (LFDE) was founded, reflecting the unwavering faith of its founders despite the turmoil. This year, we will therefore be celebrating our 35th anniversary alongside our loyal clients and partners. The CAC[3] closed 1990 at 1,500 points. With dividends reinvested, the index had risen by more than 1,000% to 8,149 points by the end of 2025, representing an annualised gain of 7.26%. While this is an impressive figure, it pales in comparison to the S&P 500’s 4,000% performance over the same period, equivalent to an annualised return of over 11% in dollars. The need for diversification is now well established. Investing, taking risks, measuring them and being selective – with the conviction that companies are the primary drivers of savings growth – remains the order of the day.
Backed by a powerful shareholder, LFDE today offers a broad range of investment solutions across geographies, styles, themes, market capitalisations and ESG intensity, thanks notably to the expertise of Tocqueville Finance, which joined the group in 2024.
Conviction-based management has at times been challenged in recent years. This is illustrated by the dispersion of our funds’ performances in 2025, ranging from -15% to +62% – an unprecedented spread. And the global geopolitical context is also reminiscent of the turmoil of the early 1990s. The list of current or potential flashpoints is long, from the war in Ukraine to US intervention in Venezuela, the Middle East, instability in Iran, Yemen and threats to Taiwan.
We remain convinced that providing stellar service and support to our clients and partners must remain an absolute priority alongside financial performance. We are adapting – and will always adapt – to our environment without compromising our convictions or the foundations of LFDE. We remain at the cutting edge of innovation, refusing to copy others or follow the winds of fashion.
As Gustave Thibon said, ‘Following the wind is the ambition of a dead leaf’.
We wish you and your loved ones a wonderful year in 2026.
Olivier de Berranger