Investment Philosophy

We invest in best-in-class businesses for their quality, strategic competitive edge and value.

We believe that a portfolio of businesses each containing these elements will provide us with a favourable return over time.

Investment Strategy

  • Bottom-up investor
  • Think like a business owner buying another business
  • Consider risk as much as return
  • Invest for sustainable organic growth in quality businesses
  • Buy global businesses, exposed to emerging markets
  • Operate with high conviction
  • No benchmark orientation, no active trading
  • Overvalued business replaced with a more attractive overall proposition

Fundamental pillars of quality: identifying global best-in-class business

Identifying global best-in-class businesses


SUSTAINABLE ORGANIC GROWTH

  • Invest for organic growth
  • Frequent use of products
  • Resilience through recessions
  • Market share growth
  • Infinite potential
  • Wary of corporate actions

QUALITY MANAGEMENT

  • Standing of CEO, Chairman, CFO, Board
  • Record of consistent success
  • Business strategy
  • Business culture (energy, innovation, openness, honesty & integrity, ESG focus, etc.)
  • Success with execution
  • Shareholder orientation
  • Clear communication
  • Active voting

EFFICIENCY

  • Operating margin, development
  • Return on Invested Capital (and incremental ROIC)
  • Balance sheet strength
  • Reinvestment record and potential
  • Working capital management

FREE CASH FLOW GENERATION

  • Sustainable free cash flow generation (not cash-hungry business)
  • Cash conversion ratio (and trend)
  • Success of free cash flow allocation
  • Sustainable dividend growth
  • Success of buy-backs

Fundamental Pillars of Quality: Identifying Global best-in-class Business

BROAD INVESTMENT UNIVERSE

QUALITY CANDIDATES

CORE UNIVERSE

(150 companies)

FOCUSSED PORTFOLIO

(20-30 attractive valuations)

Filtering

  • Quantitative fundamental quality metrics
  • Qualitative analyst research
  • Portfolio manager research
  • Third party research

Analyst coverage & recommendation

  • Ongoing analysis
  • Valuation
  • Performance
  • News flow
  • Results
  • Corporate events

Portfolio manager

  • Research co-ordination
  • Macro and market research
  • Tactical cash allocation
  • Implementation

Portfolio construction

  • Best ideas
  • Attractive valuation
  • Sensible diversification

Sell discipline

  • Long term intention
  • Better overall alternatives
  • Market or business overvalued
  • Strategic case changes
“We are what we repeatedly do. Excellence then, is not an act, but a habit.”

Will Durant

Key differentiators from other global equity growth managers are:

The team focus solely on one investment mandate | ESG orientation is ingrained in the investment process

The high liquidity of portfolio holdings ensures low risk of price effects under any stress scenario

Awards & Accreditations


Investment Management

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The following web pages are only available to "Institutional Investors" and "Professional Investors" domiciled in Switzerland in accordance with Federal Act on Financial Services ("FAFS"). Under Article 4 of FAFS "Institutional Investors", include FINMA Regulated entities. "Professional Clients" are defined as Companies with professional treasury operations, Large Companies, Occupational Pension Schemes with professional treasury operations, Private Investment Structures with professional treasury operations created for High-Net-Worth Retail Clients, and High-Net-Worth-Individuals ("HNWI"). HNWI are defined as individuals 1) who on the basis of training, education and professional experience or on the basis of comparable experience in the financial sector, possess the necessary knowledge to understand the risks associated with the investments and have at their disposal assets of at least CHF 500,000; or 2) have at their disposal assets of at least CHF 2 million. By clicking on the button "I agree" you certify that: 1) you are domiciled in Switzerland 2) you are a 'Qualified Investor' or 'Professional Investor' under Article f of 'FAFS'

We have appointed 'ARM Swiss Representatives SA' as our Swiss representative for the following funds: Stonehage Fleming ("SF") Global Best Ideas, SF Global Sustainable Equity Fund, SF Global Multi Asset Portfolio, and SF Private Capital Fund. The paying agent in Switzerland is Banque Heritage S.A. The Prospectus and the Articles, KIIDs and additional documentation including the annual and semi-annual report can be obtained free of charge from the representative in Switzerland. Full contact details are contained within the fund documentation.

 

This site is not available in your jurisdiction. If you require further information about Stonehage Fleming Investment Management please contact us at enquiries@stonehagefleming.com.

 
Group Website

I confirm I am accessing the website from the country indicated.

 

The following web pages are only available to "Institutional Investors" and "Professional Investors" domiciled in Switzerland in accordance with Federal Act on Financial Services ("FAFS"). Under Article 4 of FAFS "Institutional Investors", include FINMA Regulated entities. "Professional Clients" are defined as Companies with professional treasury operations, Large Companies, Occupational Pension Schemes with professional treasury operations, Private Investment Structures with professional treasury operations created for High-Net-Worth Retail Clients, and High-Net-Worth-Individuals ("HNWI"). HNWI are defined as individuals 1) who on the basis of training, education and professional experience or on the basis of comparable experience in the financial sector, possess the necessary knowledge to understand the risks associated with the investments and have at their disposal assets of at least CHF 500,000; or 2) have at their disposal assets of at least CHF 2 million. By clicking on the button "I agree" you certify that: 1) you are domiciled in Switzerland 2) you are a 'Qualified Investor' or 'Professional Investor' under Article f of 'FAFS'

We have appointed 'ARM Swiss Representatives SA' as our Swiss representative for the following funds: Stonehage Fleming ("SF") Global Best Ideas, SF Global Sustainable Equity Fund, SF Global Multi Asset Portfolio, and SF Private Capital Fund. The paying agent in Switzerland is Banque Heritage S.A. The Prospectus and the Articles, KIIDs and additional documentation including the annual and semi-annual report can be obtained free of charge from the representative in Switzerland. Full contact details are contained within the fund documentation.

 

This information is directed only to Canadian residents that are "accredited investors" as defined under section 1.1 of National Instrument 45-106 Prospectus Exemptions and "permitted clients" as defined under section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. This information is not, and under no circumstance to be construed as, an offering memorandum, an advertisement or a public offering of any securities described herein in any province or territory of Canada (each, a "Canadian Jurisdiction"). Under no circumstances is this information to be construed as an offer to sell securities or the provision of advice in relation to any securities. Any offer or sale of any securities described in this information will be made pursuant to the definitive private placement documents for the securities. In addition, any offer or sale of, or advice on, any securities described in this information will be made only by a dealer or adviser registered or relying on an exemption from registration in the applicable Canadian Jurisdiction. No Canadian securities regulatory authority has reviewed or in any way passed upon the information contained in this website or the merits of any securities described in it, and any representation to the contrary is an offence.

By clicking on the button "I agree" you certify that you are an accredited investor as defined under section 1.1 of National Instrument 45-106 Prospectus Exemptions and "permitted clients" as defined under section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

 

This information on this website is only intended for a) Qualified Clients, within the meaning of that term in the Israeli Investment Advice, Investment Marketing and Portfolio Management Law 1995, OR b) Qualified Investors within the meaning of First Addendum to the Israeli Securities Law 1968. It is not intended for any other type of investor. If you are unsure about whether you meet the criteria as a Qualified Client or Qualified Investor, please seek legal advice prior to reviewing this information.

By clicking on the button "I agree" you certify that you are a) a Qualified Client, within the meaning of that term in the Israeli Investment Advice, Investment Marketing and Portfolio Management Law 1995, OR b) Qualified Investors within the meaning of First Addendum to the Israeli Securities Law 1968.

 

This site is not available in your jurisdiction. If you require further information about Stonehage Fleming Investment Management please contact us at enquiries@stonehagefleming.com.

 
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