17.04.2024
Diversification is crucial, especially in 2024
As 2023’s concentrated market rally is extending into 2024, equity investors are worried about a potential consolidation or pullback.
Global equities beyond borders
Your access to global growth opportunities through UBP's distinctive global equity strategies.
Global equities, representing shares in companies worldwide, are essential for diversifying investment portfolios. They provide unique opportunities to participate in the growth of different economies and industries, providing a balance of risk and potential returns.
Our global equity strategies are designed to harness this potential by investing in a select group of companies across sectors and countries, with robust growth prospects and sustainable practices.
This approach not only broadens the investment landscape but also introduces resilience and opportunity for investors seeking exposure to diverse economic dynamics and innovations worldwide.
The potential of global equity investments
You are searching for opportunities. We look out to the world to find them.
You can diversify your investment risk across global markets.
You can have access to unique growth opportunities in different economies and sectors.
You participate in the long-term rising trend of global markets.
Our differentiated investment approach
You expect guidance. We provide expertise.
Our approach to global equities is straightforward and distinctive. We focus on actively investing in diversified companies that create value for their stakeholders. These companies are at the forefront of adopting sustainable practices, demonstrate strong competitive advantages, and benefit from structural growth opportunities.
The foundation of our strategies is focusing on alpha opportunities in companies along their Cash Flow Return on Investment (CFROI®, source Credit Suisse HOLT) lifecycle.
Ready to expand your investment horizons with global equities?
Contact our experts for solutions tailored to your goals.
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Swiss & global equity focus: dive into our latest episode on equities – insights, trends, and leaders.
Focus on our Global Leaders Strategy
The Global Leaders Strategy is a distinctive approach that focuses on an active, concentrated yet diversified portfolio of 30 global companies. By investing in these "global leaders" with high and stable CFROI® levels, the strategy aims to capture the benefits of their long-term competitive advantages, strong financial performance, and commitment to sustainability.
The concentrated nature of the portfolio allows for meaningful exposure to each company's unique growth drivers and high-quality business model, while the overall portfolio diversification across sectors and regions helps to mitigate concentration and rotation risks. This strategy is designed to deliver consistent returns over the long term driven by superior stock selection.
Our UBAM strategies
Discover strategies designed to seize opportunities beyond borders. With sector expertise, rigorous analysis, and active risk management, we aim to deliver superior risk-adjusted returns across a market cycle.
Active managers can add value by avoiding large sector or country biases and constructing a portfolio with balanced exposure to “compounders” – companies offering superior and sustainable levels of value creation. Through UBP’s Global Leaders Equity strategy, this has proven to be an efficient solution driven by stock selection rather than sector or style allocation.
Investors Insight
Frequently asked questions about global equities.
The critical factor in the stock selection process is a consistently positive CFROI® spread which is comparable across sectors and countries. This happens when economic value added is generated by a company, by having the return of cash flow generated from investments higher than the company’s cost of capital.
These companies must have a dominant business franchise, strong historical returns on investment, and clear visibility on the strength of future earnings and cash flows. This leads to a portfolio positioning favouring solid business models, superior management quality and innovation, low debt levels, low ESG risks, and low exposure to value-destructive companies or sectors.
ESG considerations, such as energy efficiency or carbon emission costs, stranded assets, or reputational and governance risks, can be considerable tailwinds or headwinds to maintaining a healthy financial positioning. ESG criteria have been an integral and necessary part of the team’s investment process in identifying sustainable business models and practices since 2006.
A global equity allocation lowers country-specific risks, mitigating the impact of single-market volatility or rotation on your portfolio. It also offers diversified growth opportunities across different economies and industries, leaving investors more leeway in expressing their active views using satellite allocations.
Our active strategies are simple and scalable, applying the CFROI®-based approach to identify alpha opportunities in global markets, European markets, and the attractive tech space. For instance, our Tech Global Leaders strategy represents the investment team’s highest-conviction selection of names in the tech space, aiming to avoid the low-growth and more volatile parts of that market that are often present in passive solutions.
Beginning with a focus on diversification and adopting a long-term investment horizon is considered a wise approach for newcomers to global equities. Patience is key, as investing is a marathon, not a sprint.
Meet the team
UBP’s Global Equity franchise is managed by the Swiss & Global Equity team, which has been working together since 2006.
Key facts and figures
- All four senior portfolio managers also have an analyst role and are actively involved in all strategies, which follow the same investment philosophy and analytical process.
- Over USD 4.5 billion in assets under management in Swiss & Global equity portfolios
- More than USD 2 billion dedicated to the global leaders strategy, launched in 2010.
25.01.2024
Tech stocks still driving returns
We don’t expect central banks to cut rates before the second half of 2024.
19.12.2023
Keeping away from “boom & -bust” trends
Electrification, weight-loss drugs, AI, digitalisation, cryptocurrencies, ESG darlings, 3D printing and the metaverse are some of the various themes that have been moving global markets recently. However, constantly shifting business environments and rapid technological advances can sometimes lead to a bubble-bursting situation for some themes and their major players.
08.11.2023
Global equities: time in the market rather than timing the market
With a rebound in EPS growth expected for 2024, though with disparities between market segments, and with interest rates and inflation still at elevated levels, active management is key.
