Equities

A stock masterclass: 15 years of World Brands

A stock masterclass: 15 years of World Brands
Juan Mendoza - Lead Portfolio Manager, World Brands

Juan Mendoza

Lead Portfolio Manager, World Brands

LOIM’s World Brands equity strategy has a mission to find the best-in-class brands globally. Launched in August 2009 (and managed by LOIM since June 20181), World Brands focuses on companies leading the charge as technological innovations, demographic shifts and new lifestyle trends transform economies. We outline the strategy’s performance since inception, the philosophy behind our stock selection and the shifting forces influencing which brands dominate in today’s market.
 

Need to know:

  • World Brands has generated a strong track record even as forces such as digitalisation transformed markets over the past decade
  • Our investment universe comprises global brands, fast-growing/upcoming brands and digital brands that all exhibit key growth metrics and competitive advantages
  • We aim to find the best opportunities across six industries, although stock selection has contributed significantly more to performance than sector allocation

 

Track record

What is key to knowing which brands to invest in right now?

World Brands focuses on the secular growth opportunities shaping world-leading brands across the regions. Since the strategy launched 15 years ago, we have seen new companies rise to prominence as forces such as digitalisation transformed markets. Some legacy brands have been able to adapt; others have struggled to compete.

World Brands has outperformed its benchmark since inception (see figures 1 and 2)2, even as the landscape of leading brands has constantly evolved. How have we weathered the dramatic sectoral shifts in the market over the past decade? By targeting companies performing strongly on key growth metrics, regardless of their sector.

A high-conviction strategy with a quality-growth bias, World Brands seeks brands worldwide with the best potential for superior, sustainable growth. In financial terms, that means an ability to achieve a high return on capital invested and long-term, compounded returns throughout market cycles.


FIG 1. World Brands strategy gross performance vs benchmark3

Explore our World Brands investment strategy.

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