Our equities team consists of analyst-fund managers who select equities in Europe, US, Japan and the emerging markets. They seek out quality companies with a sustainable competitive advantage.

PORTER FRAMEWORK

RESEARCH TARGETS

  • Sector with an economic foundation that will create added value over the long term.
  • Optimisation of corporate structures, strategy, etc. to avoid erosion of profitability by the 5 competitive forces described in Porter's framework: threat of substitute products or services, bargaining power of suppliers, threat of new entrants into the market, bargaining power of customers and increased competition from rivals in the market

COMPETITIVE ADVANTAGE

  • Unique business model that differentiates the company from its competitors and creates barriers to entry.
  • Ability to control its future and capitalise on strengths in times of economic slowdown.
  • Sustainability of fundamentals.

FINANCIAL RESILIENCE, PROFITABILITY & FREE CASH-FLOW

  • Strong cash-flow generation and good positioning translating into higher return on capital investment.
  • Low capital intensity.
  • Low and stable gearing over time without threatening to reduce dividend or need to increase capital.

CAPITAL ALLOCATION

  • Reinvestment in current and new businesses within the range of the competitive advantage.
  • Acquisition of complementary businesses for a stronger asset base
  • Share buybacks / Dividend payments
  • Improvement of its balance sheet by controlling the company's debt levels.