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UBAM - 30 Global Leaders Equity UC EUR

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Investing in superior quality companies: beating the fade

The fund invests in an equally-weighted portfolio of 30 leading global companies. These companies must have a dominant business franchise, strong historical returns on investment, and visibility on the strength of future earnings and cash flows, as well as a sustainable business model in term of ESG practices. The fund adopts a pure bottom-up approach with a risk-control overlay, and aims to outperform the broader equity market over the economic cycle.

The fund is managed to maintain an ESG quality score superior to that of the benchmark MSCI AC World Net Return, at all times, and an ESG quality score at least equal to that of the benchmark excluding the worst 20% rated companies in the benchmark. It also promotes a lower carbon footprint paying attention to issuers’ greenhouse gas (GHG) emissions and climate strategy in order to maintain the fund’s weighted average carbon intensity well below that of its investment universe.


Key points

  • Investing in global leaders with robust and stable cash flow return on investment (CFROI®), and as-yet-untapped growth opportunities
  • High-conviction, concentrated portfolio of 30 names with low turnover
  • Access to high-quality companies with significant barriers to entry
  • Aiming for a low carbon footprint relative to its investment universe and an ESG Quality Score higher than the benchmark, along with ESG integration across the investment process
  • Experienced team of four portfolio managers and analysts
  • Strong track record in different market conditions (initially launched in 2010 as an equity basket)
  • Awarded the French Label ISR for responsible investing in Q4 2019
  • Awarded the Belgian “Towards Sustainability” label in Q1 2021

Investment case

Active investing in global leaders is based on the ability to identify companies that have the strongest brand, product and positioning, which enables them to build high and sustainable entry barriers. This, in turn, will help companies beat the conventional expectations of eroding returns as a result of rising competition.

“Global leaders” are companies able to extend their cash-flow life cycle, or “beat the fade”, i.e. maintain high and stable cash flow return on investment (CFROI®). Shares of these global leaders have historically outperformed stock markets over the medium and long term as they are able to surprise the market by maintaining a positive spread between their CFROI® and their cost of capital (CoC).

Fund concept

The fund is a concentrated portfolio of 30 large-cap global stocks. The fund seeks investments in companies that hold leading positions in their particular business fields, deliver high returns on invested capital and have exposure to growth opportunities. The fund managers invest according to a pure bottom-up approach with sector and country allocations applied as a means of risk control. We intend to invest in these companies for 3 to 5 years, hence expect portfolio turnover to continue to be relatively low. 

The team intends to invest in these companies for 3–5 years, which is why portfolio turnover is expected to continue to be relatively low.

Please find the code of transparence in french here.

 

The strategy complies with 2 major European labels: the French "Label ISR" and the Belgian "Towards Sustainability" Febelfin label, awarded and administered by the Central Labeling Agency (CLA) og Belgian SRI label.

     French Label.pngSFP_2021_B.jpg (Web)    B300-az-Int-Large-Cap.pngFebelfin.png

 

Sustainability-related product disclosures

Performance

UBAM - 30 Global Leaders Equity UC EUR
NAV - Net Asset Value
Date
Data source : UBP SA
Historical performance MTD YTD 1 year 3 years 5 years Since launch
Historical performance 1.20% 5.44% -5.96% 13.28%
12 months rolling 02.22 - 02.23        
12 months rolling -5.96%
Disclaimer

Performance under 1 year is shown cumulated. Performance over 1 year is shown annualised.

Past performance is not indicative of present and/or future results. Price and availability are subject to change without notice. The value of investments may go up or down and investors may not get back the amount invested. Changes in foreign exchange rates may also cause the value of investments to fluctuate.

Library

LEGAL DOCUMENT
Title Updated English German French Italian
Annual report 31.12.2021 PDF
KID PRIIPS 01.01.2023 PDF
Prospectus 15.09.2022 PDF
Semi-annual report 30.06.2022 PDF
Shareholders letter 09.01.2023 PDF PDF PDF PDF
Status - Articles of Association 04.02.2020 PDF PDF
MARKETING DOCUMENTATION
Title Updated English German French Italian
Factsheets 31.12.2022 PDF PDF PDF PDF
Monthly Report 31.12.2022 PDF
Product card 31.12.2022 PDF PDF PDF PDF
Quarterly comment 31.12.2022 PDF
OTHER
Title Updated English German French Italian
Portfolio 30.09.2022 PDF

Registration

ATAustria
BEBelgium
CHSwitzerland
DEGermany
DKDenmark
ESSpain
FIFinland
FRFrance
GBUnited Kingdom
IEIreland
ILIsrael
ISIceland
ITItaly
KRSouth Korea
LULuxembourg
NLNetherlands
NONorway
PTPortugal
SESweden
SGSingapore
TWTaiwan
ZASouth Africa
ATAustria
BEBelgium
CHSwitzerland
DEGermany
DKDenmark
ESSpain
FIFinland
FRFrance
GBUnited Kingdom
IEIreland
ILIsrael
ISIceland
ITItaly
KRSouth Korea
LULuxembourg
NLNetherlands
NONorway
PTPortugal
SESweden
SGSingapore
TWTaiwan
ZASouth Africa

Italy: I shares are only notified to the CONSOB.

Singapore: Sub-funds registered with the MAS (Monetary Authority of Singapore) can only be offered to “accredited investors”.


Fiscal information

Titre Statut
End of fiscal year 31 December
UK RFS Yes Reportable Income
German transparency Yes Investor Report
Austrian transparency Yes
Italian reporting Yes
Switzerland RNI Yes

Sustainability-related disclosure

 

Summary

This Sub-Fund is mainly constituted as a high-quality, large market capitalization equity portfolio invested in around 30 global leading companies (i.e. having a leadership position due to their market share, innovation capabilities, brand recognition or superior management talents) combining superior returns and growth opportunities characteristics over the next 3-5 years.

It promotes environmental and social characteristics but does not have as its objective sustainable investment. However, it will have a minimum proportion of 1% of sustainable investments.

The environmental characteristic promoted is to maintain a lower weighted average carbon intensity than the MSCI AC World NR, paying attention to issuers’ activities, greenhouse gas (GHG) emissions and climate strategy. The index is a standard reference representing the Sub-Fund’s universe but is not aligned with the environmental and social characteristics promoted by this Sub-Fund.

The social characteristic promoted is to have a better corporate sustainability than its benchmark through the exclusions of companies in breach of the United Nations Global Compact (UNGC).

The objectives of the sustainable investments that this Sub-Fund partially intends to make may include but are not limited to:

  • Environmental objectives such as climate change mitigation through resource efficiency: for example through investments in companies with revenues from products or services that help reduce the consumption of energy, raw materials, and other resources,
  • Social objectives such as major disease treatment: for example through investments in companies with revenues from products for the treatment or diagnosis of major diseases of the world.

To ensure sustainable investments that this Sub-Fund intends to make do not cause significant harm, the Investment Manager assesses whether these companies do no harm through an internally-designed methodology which covers principal adverse impact, controversies, misalignment with SDGs and ESG/governance quality.

The Investment Manager takes into consideration and seeks to minimize the following potential principal adverse impacts of its investments: 1) GHG Intensity of Investee Companies, 2) Violations of UN Global Compact principles and Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises and 3) Exposure to Controversial Weapons.

The ESG approach is embedded in the investment process as ESG considerations can be an important driver for risks associated with an investment and for maintaining or improving the Cash Flow Returns on Investment (CFROI®. Source: Credit Suisse Holt) of a company. The Investment Manager first performs a negative screening and a norms-based screening to filter the investment universe. ESG‑related information is then directly integrated into the proprietary Discounted Cash Flow (DCF) models of companies. The portfolio construction will consider the overall ESG score as well as the contribution to risk that arises from ESG exposures. Company specific and portfolio factors including ESG developments are considered when monitoring the portfolio and deciding to exit positions.

The ESG analysis, conducted internally or externally, covers 100% of the portfolio’s equity holdings.

This Sub-Fund intends to have a minimum of 90% of its assets aligned with the environmental and social characteristics promoted, including a minimum of 1% in environmentally and/or socially sustainable investments.

The binding criteria used to attain each of the environmental and/or social characteristics promoted by the Sub-Fund are integrated in control systems, to ensure pre- and post‑trade checks. Compliance is monitored by the Risk department on an ongoing basis.

The Investment Manager may use data reported directly by issuers or sourced from third-party data providers such as MSCI ESG Research or Sustainalytics. The service and data quality provided by third-party ESG data providers are reviewed regularly.

Depending on the metric considered, some data may be estimated by data providers. Although the Investment Manager applies a thorough selection process of third-party providers, their processes and proprietary ESG methodology may be flawed. As a result, there is a risk of incorrectly assessing an issuer, resulting in an inappropriate capture of ESG risks and potential incorrect inclusion or exclusion in the product. This is expected to have limited impact on the overall environmental and/or social characteristics promoted by the product.

The investment due diligence process ensures that the investment decisions comply with the objectives and the investment strategy of the Sub-Fund. The consideration of sustainability-related risks is integrated into the investment decision-making process to ensure better-informed investment decisions as well as awareness of the risk exposure. The first level of due diligence is conducted by the Investment Manager, while the second level is conducted by the Risk department.

Engagement with investee companies may occur. It can be conducted collaboratively as well as, on an ad-hoc basis, directly by the investment team.

The Investment Manager exercises its voting rights, in line with the voting policy which follows sustainability principles.

No reference benchmark has been designated for the purpose of attaining the environmental or social characteristics promoted by this Sub-Fund.

For more information, please see the fund’s Sustainability-related disclosures.

 

  • ISIN code
  • LU0862309761
  • Data as at
  • 02.02.2023
  • Latest NAV
  • 143.98 EUR
  • Fund's AUM
  • 1'692.18M USD

Fund data

  • Fund name UBAM
  • Legal structure SICAV
  • Jurisdiction Luxembourg

Sub-fund data

  • Base currency EUR
  • Asset class Equity
  • Geographical bias Global
  • Inception date 12.12.2006
  • SFDR classification 8

Share class data

  • Description UC EUR
  • Launch date 28.02.2020
  • Dividend type Capitalisation
  • Minimun initial investment None
  • Subscription Daily
  • Redemption Daily
  • Management fee 0.75%
  • Performance fee No
  • Performance fee rate N/A
  • Last dividend N/A

Identifiers

  • Bloomberg UBGLEUE LX
  • Telekurs 20123074
  • Reuters N/A
  • WKN A2P55H
  • SEDOL N/A
  • Morningstar N/A
  • Financial Express -

Manager(s)

    Martin Moeller / Fares Benouari