High Conviction Investment Strategy

Concentrated investment solution comprised from 8 high quality stocks which are leaders in terms of their financial solidity, business model, market position and management. Strategy has long-term investment horizon that provides an excellent opportunity to invest in the best global companies.

>10% alpha generation

Average portfolio return over last 5 years has been over 20% per year with an average outperformance of 10%.

High share of outperformers

Significant part of a portfolio constituents (85%) have outperformed the market while being held in a portfolio thanks to their strong international presence, market dominance in actively growing sectors and profiting from macro trends.

Low volatility

Despite being highly concentrated investment solution, Top 8 portfolio beta (level of risk) is below 1, proving that high quality companies are less risky than the general stock market (MSCI World).

Highly focused equity strategy

Global Quality Top 8 Strategy (EUR)
MSCI World Index (Net TR in EUR)

Past performance is not a reliable indicator of current or future performance. The performance is in EUR including transaction costs, dividends are reinvested, without management fees. YTD Performance is calculated provisionally as of the end of the period and may experience adjustments due to retrospective dividend bookings.

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Performance Summary
Global Quality Top 8 Strategy (EUR) MSCI World Index (Net TR in EUR)
YTD Global Quality Top 8 Strategy (EUR)17.26 % MSCI World Index (Net TR in EUR)6.46 %
1 Year Global Quality Top 8 Strategy (EUR)52.76 % MSCI World Index (Net TR in EUR)31.56 %
3 Year p.a. Global Quality Top 8 Strategy (EUR)27.16 % MSCI World Index (Net TR in EUR)14.42 %
5 Year p.a. Global Quality Top 8 Strategy (EUR)24.1 % MSCI World Index (Net TR in EUR)13.51 %
Since Inception p.a. Global Quality Top 8 Strategy (EUR)24.6 % MSCI World Index (Net TR in EUR)12.42 %
Alpha
11.72 %
Beta
0.96
Tracking Error
8.32 %
Information Ratio
1.28
Sharpe Ratio
1.35
Active Share
95.78 %
The track record of the product represents composite performance result based on Top 8 strategy product provided by associate Switzerland-based company Hérens Quality Asset Management AG. Further information on the product is available upon request. The value of the money invested in the strategy can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed.

Minimized Risk & High Liquidity

Alphinox as an asset manager does not hold any client assets, all assets are held by client's custodian bank.
Invested client assets are not on custody bank’s balance sheet, thus does not carry counterparty risk.
Investments only in liquid financial instruments, which allow, if necessary, to sell them promptly at no extra cost.
Investments exclusively in high quality companies that provides lower risk than general market.

FAQ

  • For us, quality is not just a buzz word - rather, it is the core of our investment approach. With our proprietary research, we meticulously analyze companies using hard and soft factors to exclude from the investment universe those that do not meet our defined requirements to be assigned a Quality label. It is a stringent and consistent approach leaving no space for a simple “gut feeling”. Only in the last step of our approach, our Investment Committee will unanimously decide - on the back of their years-long experience - which quality stock will actually make it into the portfolio.
  • No, they do not. We apply the same criteria to every investment region of the world.
  • Historically and on average, our strategies managed to outperform respective benchmarks both during both up and down market phases. Especially in uncertain times, the quality of a company becomes a seek-after factor, which is a natural tailwind for Quality stocks.
  • In the environment where bonds offer low to negative yields, equity still remains an attractive asset class from the risk/reward perspective in the long-run. With the markets being as volatile as they are right now, and uncertainty prevailing over the general course of the global economy, the significance of the fundamental strength and quality of companies has never been higher. It is our duty towards our clients to ensure that the companies we select and invest in are the ones that have exceptional financial strength.
  • We are not traders but investors. Both our Buy and Sell criteria are systematic and very disciplined. We include (exclude) a stock in (from) our portfolio only if there is a change in valuation or fundamentals so that it no longer is “quality at an attractive valuation”. Therefore, there are months, when no trades for a portfolio are made.
  • We work with various banks both in Latvia and internationally.

This marketing communication is for information purposes only and does not constitute an offer, solicitation or recommendation to buy or sell any investment instruments, to effect any transactions or to conclude any legal act of any kind whatsoever. Although Alphinox Quality AS believes that the information provided herein is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained herein.

 

*Alpha: the excess return of an investment relative to the return of a benchmark; Beta: the relative volatility of an investment; Tracking Error: difference between the return fluctuations of investment and benchmark