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Investing in Good Companies

Welcome! We are a different asset management company:

  • Our unique fundamental portfolio characteristics result in a higher probability of outperformance
  • Our stock selection has superior ESG & Sustainability scores and very low Carbon Footprint
  • As significant co-investors in our funds we have skin-in-the game
News

Qua vadis?

ARTICO Sustainable Equity Funds

Access fund information

Investment Strategy
Unique Portfolio Characteristics Deliver Superior Performance

The higher outperformance probability comes from investing in companies with high scores in the following 5 dimensions:

 

Our proprietary research on relevant fundamental selection criteria is the foundation of our fundamental model. We published the key results in the Wilmott Magazine

READ the full Wilmott Article

 

and a shortened version in Finanz und Wirtschaft

READ Article in Finanz & Wirtschaft

 

Our Outperformance comes from three sources:

  1. The fundamentally best companies have a higher probability to outperform
  2. Diversifying into a large number of good companies ensures robust outcomes
  3. Investing beyond benchmarks creates a larger set of opportunities
READ our Company Fact Sheet

Fully Integrated ESG/Sustainability Criteria

 

What is our Motivation to apply ESG?

High ESG scores will outperform, because they:

  • Are a good proxy for superior management
  • Will attract significant institutional flows
  • Contribute to Investment Risk Mitigation

What makes our Approach to ESG unique?

We create portfolios with superior fundamental characteristics and very high ESG Scores and very low Carbon Footprint at the same time

What is the expected Performance impact of ESG?

We analyzed the MSCI ESG database and developed our own ARTICO ESG factor, which is a good predictor of future outperformance

 

READ our Principles for Responsible Investing

A Team of Experienced Partners co-invested in our funds

Dr. Ulrich Niederer
Chairman and Senior Partner

As Chairman of ARTICO Partners, Ulrich oversees the business strategy, the product development and the investment activities of the firm. Operationally, he is directly responsible for Risk Management and Compliance. Ulrich is a Founding Partner of ARTICO.

Ulrich has more than 30 years of investment experience and started his career as quantitative research analyst in 1986 at the then Swiss Bank Corporation. His various functions at SBC and later UBS Global Asset Management included: Chief Investment Officer, Co-CEO Switzerland, Chairman of the Swiss Business and Head of the Alternative Investment Management Business (Private Equity, Hedge Funds, Infrastructure). Ulrich holds a PhD in Nuclear Physics from University of Basle.

Dr. Gabriel Herrera
CEO and Senior Partner

As CEO of ARTICO Partners, Gabriel is responsible for all aspects of the business including the product development, client relationships and the investment activities of the firm. Gabriel is a Founding Partner of ARTICO.

Gabriel has more than 30 years of investment experience and started his career as equity research analyst in 1987 at the then Swiss Bank Corporation. His various functions at SBC and later UBS Global Asset Management included: Head of Equity Research, Co-CEO Switzerland and then CEO Europe Middle East & Africa. Gabriel holds a PhD in Economics from University of Basle.

Tero Toivanen
CIO and Partner

As Chief Investment Officer Tero is responsible for the research and development of investment strategies and portfolios. His responsibilities include the continued development of the investment platform and the portfolio management of ARTICO funds.

Tero’s background contains several years of experience in global equity portfolio management and prior experience in the areas of software development, quality management and team leadership. Tero holds MsC in computer science from the Helsinki University of Technology and MBA from the Purdue University. Tero is also a CFA Charterholder.

Michael Brenneis
Head PM and Partner

Michael’s main responsibility is the portfolio management of ARTICO funds. His further responsibilities include the development of the investment platform, and research and development of investment products and strategies.

Michael holds diploma certificate in electrical engineering and MBA from the university of South Australia. He has several years of experience in global equity portfolio management and prior experience in software development in the areas of telecommunications, medical engineering and finance.

Andreas Konrad
COO and Partner

As Chief Operating Officer of ARTICO, Andreas is responsible for the operational part of the investment management, including the fund operations and trading activities.

Andreas‘ background involves several years of work experience in the finance industry, mainly in global equity trading and operations functions. He is holder of Swiss federal diploma in business organization and a diploma in applied psychology.

Stephan Meier
Investor Relations and Partner

Stephan’s main responsibility is the management of Artico’s relationship to professional and qualified investors in our funds.

Stephan has more than 30 years of investment experience and started his career as equity research analyst in 1987 at the then Swiss Bank Corporation, later UBS. His functions included: Head of Portfolio Management for Swiss Equities, Head of Product Management for Institutional Funds. He worked as CEO of the respective asset management business for Bank am Bellevue, the BZ and Clariden Leu. Stephan holds a Masters in Economics from the University of Basle and the CEFA title from the AZEK. He is a Board Member of the Swiss Financial Analyst Association and AZEK.

As significant co-investors in our funds at the same conditions than our clients, we have „skin-in-the-game“. Is there a better way to fully align our interests?

READ why having „skin-in-the game“ is essential
ACCESS our Company Fact Sheet for more Information

 

Board of Directors ARTICO Partners AG

  • 
Dr. Ulrich Niederer, Chairman
  • Dr. Gabriel Herrera
  • Thomas Huber (Independent Director)
  • Neil Stiefel (Independent Director)
  • Dominique Bertrand

cfi.co award 2018 winner switzerland

News

Qua vadis?

  • Market recovery took a breather in September amongst rising concerns about a second wave and political uncertainty (US elections, Brexit)
  • Global Developed Markets were down 3.4%, Global Small Caps lost 1.4% and Emerging Markets were down 1.6%.
  • Artico stock selection contributed positively, particularly in Global Small Caps 
  • There are many reasons for investors to become more cautious in the short term:
    • Following faster than expected recovery, valuations have reached historically high levels
    • Uncertainty surrounding US presidential elections and the potential for a disorderly transition of power
    • The recent surge in COVID Cases and the related more restrictive measures result in fear of slowdown of economic recovery
  • Global Equities however will continue to benefit from the current fiscal stimulus and monetary conditions in the foreseeable future
  • The investment opportunities in cash or bonds look much less attractive in relative terms.
  • In the current environment, it is a smart strategy to be invested in a diversified portfolio of companies with high growth rates, high profitability, a low valuation, an excellent ESG ranking and very low carbon footprint
Access Fund Documents and Monthly Report

Crisis? What Crisis?

  • Market recovery not only continued for the 5th consecutive month, but some markets saw new all-time highs
  • Global Developed Markets were up 6.7%, Global Small Caps gained 5.9% and Emerging Markets were up 2.2%!
  • As depicted on the cover of the legendary Supertramp album (https://youtu.be/uk-C5lmJigk), it feels like markets seem to enjoy tanning in the warming sun forgetting about the chaos around them 
  • Focus of markets is clearly on the net present value of equities, which benefits from the prospect of an extended period of very low interest rates
  • Expectations for medication and vaccines are rising and governments seem determined to avoid second lockdown
  • The FED’s new approach to monetary policy focuses on achieving a robust economy and explicitly relaxes its stance on inflation
  • The resulting reinforced market expectations are very low interest rates for a very long time
  • Global Equities will therefore continue to benefit as there is no promising alternative investment
  • Market valuations are however extended following the impressive rebound and more vulnerable to short term stress
  • Our fundamental concerns about the long-term effects of current monetary and fiscal policies remain unchanged as government debt and central bank balance sheets are experiencing gigantic expansion
  • In the current environment, it is a smart strategy to be invested in a diversified portfolio of companies with high growth rates, high profitability, a low valuation, an excellent ESG ranking and very low carbon footprint

If it sounds crazy and it looks crazy…it is probably crazy

  • In July, the market recovery continued for the 4th consecutive month: Global Developed Markets were up 4.8%, Global Small Caps gained 4.9% and Emerging Markets were up even 8.9%!
  • The FED’s statement that they are „not even thinking about thinking about interest rates hikes“ provides for expectations of a long-term low interest rate environment
  • ARTICO stock selection was broadly in line with benchmarks, outperforming investment universes
  • In a way, one could feel being in the wrong movie – think about this:
    • Plummeting economic activity
    • a central bank monetizing sky-rocketing fiscal deficits
    • riots on the street, mounting protectionism and political populism
    • and add to that a weakening national currency….: 
  • Is that a doomsday scenario or a short summary of Latin American economic history? 
  • No: It is the current setting in the US and most parts of the developed world….and a big concern for the long-term outlook
  • However, as long as the US dollar is an accepted global currency, the US will not experience the devastating consequences of its Latin American-style economic policy
  • At the same time, global equity markets seem to ignore all of that and are comfortable with pricing in long-term prosperity at zero interest rates
  • And as long as interest rates are expected to stay low for the long-term, there is no better investment alternative than equities
  • After 4 consecutive months of rebounding markets, it would be reasonable to expect some turbulences in the months to come
  • In crazy times like today, it is a smart strategy to be invested in a diversified portfolio of companies with high growth rates, high profitability, a low valuation, an excellent ESG ranking and very low carbon footprint

Don’t fight the Fed…

  • In June, the market recovery continued: Global Developed Markets were up 2.6%, Global Small Caps gained 3.8% and Emerging Markets were up a full 7.4%
  • ARTICO stock selection was in line in Developed Markets, while lagging a little in Emerging Markets
  • The old saying „Don’t fight the Fed“ proved correct again
  • Massive fiscal and monetary stimulus packages worldwide have convinced markets that authorities will
    „do whatever it takes“
  • Investors seem to focus on the long term, possibly also discounting „lower rates for longer“
  • Danger signs remain with a strong rebound in infections in the US and the unabated rise in South America
  • After the crisis, markets will have to deal with unprecedented fiscal deficits, government debt levels and bloated balance sheets of central banks
  • Artico funds rank in the top 10% in terms of ESG quality (rated by MSCI) 
  • This top rating in terms of ESG quality combines with unique fundamental characteristics: high growth rates, a superior profitability and a big valuation discount

Looking Again on the Bright Side of Life: An apparent disconnect between Markets and Economy

• In May, market recovery continued: Global Developed Markets were up 4.8%, Global Small Caps gained 6.0% and Emerging Markets were up 0.8%.
• ARTICO stock selection outperformed in Global Core and Emerging Markets and was slightly behind in Global Small Caps.
• There is an apparent disconnect between Equity Markets and the Economy
• Investors seem to focus on 2021/2022 and beyond, ignoring horrible economic data and bad profit numbers for the current quarter
In addition, investors have also to deal with rising US-Chinese tensions, significant civil unrest in the USA and huge challenges facing Europe (EURO zone stability, Brexit)
After the crisis, markets will wake up in a world with unprecedented fiscal deficits, government debt levels and monetary expansion.
• So: What justifies buoyant equity markets?
• Looking at absolute and relative valuations, the apparent disconnect does follow a certain logic:
Absolute Company Valuations are based on future discounted cash flows; a weak quarter has little impact on such fundamental valuation , while reduced interest rates even improve such valuations
• In relative terms, the unprecedented monetary flood leads to a flight into real assets as holding nominal debt of potentially bankrupt governments looks increasingly threatening
• Nevertheless, expect large swings in the short term
• It is therefore more than ever a good strategy to stay invested in fundamentally good companies

• The companies we invest in have a unique combination of characteristics which cannot be found elsewhere: high growth ratessuperior profitability, higher ESG quality score, a very low carbon footprint and a big valuation discount at the same time. 

Sustainable Investing: Encouraging Evidence for Investors!



Is sustainable investing a positive or negative contributor to outperformance? And how patient do investors need to be to capitalize on any positive effects? Our research results answer these questions and our conclusions on the required time horizon may come as a surprise for investors hesitating to introduce sustainable investing.

Find out More

Contact

ARTICO Partners
Stockerstrasse 50
CH-8002 Zürich

Tel: +41 44 201 40 20
E-mail: info@artico-partners.com