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.
