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Investment expertise

Swiss & Global Equities

Swiss & Global Equities

Swiss & Global Equities are managed within the same team. This is because Swiss companies generate more than 90% of their revenues globally. Knowing their international suppliers, competitors and customers helps understand their potential.



Cash Flow Returns on Investment (CFROI) on the Swiss market are among the highest. CFROI is the financial measure which best enables an investor to appreciate a company’s value creation. In our global portfolios, we look for companies that have, or are able to reach, the level of CFROI generated by Swiss companies.

Opportunities

  • We expect a continued supportive environment for equities in 2018, due to continued synchronised GDP growth globally.
  • The Swiss Performance Index has outperformed the MSCI World consistently since 1988.
  • We do not expect this to change in 2018, with small- & mid-cap companies driving performance.
  • Stock markets have been rising for a few years now, but valuations are just on their long-term average and earnings growth should drive further gains.
  • Rising interest rates, like the 2004–2006 period, are generally favourable for stock markets.
  • Failure by companies to deliver on that earnings growth expectation or a central bank policy error could lead to lower returns for the year.

Investment philosophy & process

  • The levels and development of a company's CFROI are consistent indicators of its ability to create value for investors, and best reflect the decision-making process of its management.
  • Corporations tend to follow a similar profitability life cycle, reflected by their CFROI, which allows for comparisons between companies across sectors and countries.
  • We seek undervalued stocks along the company CFROI life cycle. We build conviction by in-depth analysis of companies and their environments.
  • Active stock selection explains the majority of excess returns…
  • …but it is important to manage the degree of active risk. Active management of portfolio tracking error is part of our approach to portfolio construction and risk.

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Concept

During a typical company’s life, its business generates varying levels of cash flow return on investment (CFROI) reflecting its stage of development: growth, maturity or decline. While superior CFROIs tend to fade down to the Cost of Capital (CoC) as value creation attracts competition, inferior returns may “fade up” to the CoC as a result of restructuring or competitors exiting the market. The team seeks to identify companies with consistent, superior CFROIs that steadily create value over the long term which is not yet discounted by the market. We also look for turnaround stories that are drastically undervalued and for companies experiencing a phase of accelerating growth that may not yet be fully appreciated in terms of the magnitude and duration of the widening positive spread between CFROI and CoC.

Funds

Swiss & Global Equities

  • Swiss Equity: Large, Small & Mid Cap
  • Global Equity Growth
Our Range Offering
Co-Head Swiss & Global Equity Portfolio Management

Eleanor Taylor Jolidon

Eleanor has been working on financial markets since 1993 and has focused on analysing and managing Swiss & global equity since 2004. She holds an M.A. from Trinity College, Cambridge and a DHEE from the College of Europe, Natolin.
Co-Head Swiss & Global Equity Portfolio Management

Martin Moeller

Martin joined UBP from Deutsche Bank, where he worked for fourteen years, principally on equity portfolio management. Martin holds a Master of Finance from the Frankfurt School of Finance & Management and is a CFA charterholder. Martin is the author of Strategic Concepts of Universal Banks, published in 2000.

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Institutional clients

With a team of more than 200 people, UBP Asset Management has built an on-the-ground presence in the world’s major markets through organic growth and selected partnerships.

Our fund range

Funds

View all our funds.

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