Key points
- Investing in global leaders with robust and stable cash flow return on investment
- High-conviction concentrated portfolio with low turnover
- Provide access to quality growth at any price
- Experienced team of four analysts and portfolio managers
- Strong track record for the strategy (initially launched in 2010 as en equity basket)
Investment case
Shares in companies with high and sustainable cash flow returns on investment (CFROIs®) and exposure to growth have outperformed stock markets over the medium and long term. Investing in value creation through high CFROIs® is appealing in every business cycle and has proven to limit the downside risk while participating in the upside. Bottom-up stock selection is based on the ability to identify those companies that have strong brands, products and positionings, all of which enable them to “beat the fade”.
Moreover, ESG considerations can be an important driver for the risks associated with an investment and for maintaining high and sustainable CFROIs®. As such, ESG criteria have been an integral and necessary part of the team’s investment process that enables them to identify sustainable business models and practices. Through direct engagement with companies and proxy voting, the team ensures that their obligations as responsible shareholders are fulfilled. The Swiss & Global Equity team promotes bilateral engagement with companies as the most dynamic and useful approach to encouraging improvements in their adherence to ESG considerations.
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.
