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    risks.

    The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Concentration risk, Emerging market risk and Active management risk.

    glossary.

    World Brands

    Global, high-conviction investment in leading brands with proven earnings growth and pricing power
     

    We focus on high-quality companies whose hard-to-replicate, intangible assets – such as a strong brand, digital platform, a unique technology or innovation – result in attractive, resilient earnings that reflect genuine pricing power. 

    >25%

    Portfolio return on equity 

    15 year

    track record.
    Outperforming MSCI World 
    since 2009 inception

    article 8

    SFDR classification

    why invest?
    why invest?·our philosophy·brands universe·investment process·key portfolio figures·investment team ·performance and data·get in touch·insights

    why invest?

    1

    Compounding, long-term returns
    Proven by the strategy’s strong track record since its 2009 inception1.

    2

    High-conviction, quality-growth focus with proprietary ESG integration
    Portfolio of 30-60 stocks offering high return on equity and cash flow on capital employed, and tested by LOIM’s proprietary analysis of ESG business practices.

    3

    Diversified exposure for through-the-cycle resilience
    Investing across cyclical, growth and defensive sectors with a three-to-five-year horizon.

    4

    Strong growth, capital efficiency
    A portfolio characterised by high earnings per share, sales growth, return on equity and free cash flow.

    5

    Experienced portfolio management
    The Lead Portfolio Manager is supported by sector specialists and has more than 25 years of experience. He has overseen the strategy since inception.

    our philosophy.

    We believe high-conviction, long-only investment in leading global brands with demonstrable pricing power and strong cash flows on capital employed generates attractive compounding returns throughout market cycles.

    Aiming to achieve this, we implement the following2:

     

    loim/strategy-pages/World Brands/EN/World_Brands_quality-growth_biasAsset

    Quality-growth bias
    Compounders: High and stable CFROI ® over discount rate. Capital efficiency: High ROE within the industry.
    Pricing power: Best in class gross profit margin within the industry. Sales growth: Best in class across the industry
     

     

     

    loim/strategy-pages/World Brands/EN/World_Brands_quality-growth_biasAsset

    Long-term investment horizon
     With a 3-to-5-year view, we look
    beyond short-term noise and focus
    on structural forces of change

     

     

    loim/strategy-pages/World Brands/EN/World_Brands_quality-growth_biasAsset

    Fundamental stock-picking
    Our stock selection is based on fundamental analysis and conviction in brands’ competitive advantages.
    Portfolio construction with a 5-10% tracking error relative to the MSCI World

     

    brands universe.

    Starting with the global equity index, we allocate attractive brands into three categories3 to form a proprietary universe.

     

    Global brands
    Global leaders
    Above average EBIT margin and return on equity.
     
    A strong brand or portfolio of brands.
    Deep and durable customer loyalty.
    Brand extension across product or service categories.

     

     

    Upcoming brands
    Disruptors and challengers
    High revenue growth. 
     
    Innovative or disruptive product or business model.
    Claiming market share from competitors.
    Investments in brand equity and lower free cash flow generation.

     

     

    Digital brands
    Innovative platforms
    High revenue and earnings growth.
     
    Disrupting physical business models or creating new markets.
    Constantly innovating or improving user experiences.
    Powerful customer retention with high switching costs.

     

    investment process.

    First, we screen markets worldwide to establish a universe of potentially attractive global, upcoming and digital brands. Through fundamental research and company meetings, we then analyse their financial and growth characteristics. Finally, by assessing competitive advantages, ESG business practices and valuations, we develop conviction in a select brands for inclusion in the portfolio4. 

    2009

    21 Aug 2009:
    Strategy inception

    30 - 60

    holdings for concentration

    5 -10%

    Targeted tracking error

    70-90%

    Targeted active share

    Large-cap focus

    Market capitalisation

    MSCI World EUR

    Benchmark

    Quality-growth

    Style 

    Article 8

    SFDR classification5

    investment team.

    portfolio manager.

    LOcom_AuthorsAM-Mendoza.png
    Juan Mendoza
    LOIM Core Equities
    Lead Portfolio Manager since 2009

    analysts and CPM.

    LOcom_AuthorsAM-Li.png
    Zhiwei (Lyra) Li
    LOIM Core Equities
    Equity Analyst

    LOcom-AuthorsAM-Chung2.png
    Ashley Chung
    LOIM Core Equities
    Equity Analyst

    LOcom-AuthorsAM-Gao.png
    Faye Gao
    LOIM Core Equities
    Equity Analyst

    LOcom_AuthorsAM-Ducrot.png
    François Ducrot
    LOIM Core Equities
    CPM

    Find out more about our World Brands fund, including share classes.

    more information

    sources.

    1 Original fund inception date 21.08.2009
    2 Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance.
    3 LOIM and ranking Global Brands 100 by Interbrands.com. As of May 2024. For illustrative purposes only. Does not mean these brands are holdings in the fund. Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. Definition: Global Brands have revenues more than 30% from international markets versus domestic market. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document. Holdings and/or allocations are subject to change.
    4 LOIM. 1Minimum USD 1 billion market cap, 2minimum USD 5mn average daily liquidity, listed in developed markets. Allocations are subject to change. It illustrates the investment process undertaken by the manager in respect of a certain type of investment, but may not be representative of the Fund’s past or future portfolio of investments. For illustrative purposes only. Holdings and/or allocations are subject to change.
    5 Holdings and/or allocations are subject to change. Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance.

    insights.

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    Consumer trends in a post-pandemic world

    more insights

    get in touch.

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    important information.

    This document is a Corporate Communication and is intended for Professional Investors only. This document is a Corporate Communication for Professional Investors only and is not a marketing communication related to a fund, an investment product or investment services in your country. This document is not intended to provide investment, tax, accounting, professional or legal advice. This document is issued by Lombard Odier Asset Management (Europe) Limited (hereinafter the “Company”).

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