Portfolio Specialist Laura Bottega poses some topical questions to Portfolio Manager Bruno Paulson.
Laura Bottega (LB): Back to basics first. What are the key benefits that concentrated global equity portfolios Global Franchise/Brands and Global Quality offer to investors?
BRUNO PAULSON (BP): What they both offer is a collection of steadily compounding companies at reasonable valuations. The point is, these companies have earnings which have been really robust in tough times. For Global Franchise, the earnings for the holdings within the portfolio actually increased during the global financial crisis, a time when the earnings for the market halved.1
Because these companies have historically been able to compound even in tough times, we believe that over the whole cycle the companies (and therefore the portfolios) can compound well, better than the market. We believe that this is why, over the cycle, our strategies have delivered strong absolute and relative returns.
LB: So could you sum it up by saying that you believe the strategies offer capital growth, and earnings visibility?
BP: Yes, and a measure of downside protection, relative to the benchmark.
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