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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

ARTICO Partners awarded GOLD rating by Citywire for its Emerging Market Funds!

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?

Companies with 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?

Investing with a sole focus on ESG can result in buying over-priced stocks. 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 use MSCI ESG database and we developed our own ARTICO ESG factor, which is a good predictor of future outperformance

 

 

Artico Partners is a signatory of the UN PRI, follows the engagement work and the exclusion list of the SVVK (Swiss Association for Responsible Investments), fully supports the PARIS agreement on climate change and is also a supporter of the TCFD (Task Force on Climate-Related Financial Disclosures).

 

Published ARTICO Research:

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.

READ the full article published in Wilmott Magazine (Sep 2020)

 

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.

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
  • Dominique Bertrand

cfi.co award 2018 winner switzerland

News

ARTICO Partners awarded GOLD rating by Citywire for its Emerging Market Funds!

We are pleased to announce that Citywire has awarded a GOLD Rating for ARTICO’s Sustainable Emerging Market Funds. Citywire awards such Gold Rating only to few selected asset managers and does so in a fully independent manner.

Are Central banks hostage to markets and their indebted governments?

• First of all we would sincerely like to thank all of you for your support in our first 10 years of operation!
• Over these 10 years we have delivered a strong absolute and relative performance to our investors
• Our focus on research has resulted in continuous improvements of our investment approach and – 2 years ago –  to a full integration of ESG and carbon footprint criteria
• We are now able to claim a very unique combination of portfolio characteristics not found elsewhere: Excellent fundamentals, very high ESG scores and very low carbon footprint at the same time!
• Your, our investors, have always supported us in these developments. We are very grateful.
• Not much news on the equity markets
• Global Developed Markets were up 1.5%, Global Small Caps gained 0.2% and Emerging Markets advanced 0.2%
• ARTICO stock selection in the first half year generated excellent results in all three investment universes
• Significant outperformance against last year’s winners focused on large cap growth stocks continued
• The FED’s overly prudent tone highlights highlights how much central banks are falling behind the curve in terms of necessary monetary policy adjustments
• Central banks are hostage to markets and their own indebted governments
• It is unlikely we will see significantly rising interest rates any time soon
• So, real assets should continue to be preferred over nominal assets
• The more exuberance you see in markets the better it is to follow a solid investment strategy
• Artico Sustainable Equity Funds are well positioned to navigate through unpredictable future
• (1) Artico is invested in companies with fundamental characteristics of highest quality
• (2) Artico funds have no single style or single sector bias (size, growth, value, technology, etc)
• (3) Artico funds have excellent ESG characteristics and very low carbon footprint
• Our Artico Sustainable Defensive Global Flagship Fund allows cautious investors to fully benefit from ARTICO’s stock selection at 90% reduced market risk.
• Currency-hedging costs have been very high over recent years making EURO and CHF-hedged share classes look unattractive, but interest rate differentials are less now (slightly below 1%) We are finalising the operational account opening to be ready to launch our new ARTICO Golden Dragon Fund. It will be different from other „Greater China Funds“ as it will not only have better fundamental characteristics, but also a much better ESG rating and a significantly lower carbon footprint. This will be a key-feature in the years to come as China has a lot of catch-up to do in terms of sustainability. Please contact us to receive more information.

Financial Repression Stage 2….

• Despite a spike in intra-month volatility (inflation fears) global equity markets ended the month of May again with positive performance
• Global Developed Markets were up 1.4%, Global Small Caps gained 1.5% and Emerging Markets advanced 2.3%
• ARTICO stock selection continues to generate excellent results in all three investment universes Year-to-Date
• Significant outperformance against last year’s winners focused on large cap growth stocks
• The Governor of the Bank of Italy (and ECB council member) stated publicly that „the ECB will counter any unjustified interest rate rises
• It feels a bit like a Draghi-moment („whatever it takes“)
• Even more interesting: such statement is not contradicted
• What exactly are „unjustified“ interest rate rises?
• Those that would happen in a free capital market without central bank manipulation?
• We enter financial repression stage 2 (negative real interest rates for as long as possible)
• Terrible times for nominal asset holders and savers
• The monetisation of government debt and the super-loose monetary policy may go on for years
• Real assets like equities and real estate will continue to benefit
• Market fragility will increase, as valuations are higher
• Positive and negative market sentiment will likely switch regularly keeping volatility high

Now you see me…..now you don’t…

• More „booze“ for equity markets and the party goes on into extra-time
• Global Developed Markets were up 4.7%, Global Small Caps gained 4.3% and Emerging Markets advanced 2.5%
• Markets driven by strong economic rebound (mainly led by US and China) and a super-loose „laissez-faire“ approach of central banks
• ARTICO stock selection continues to generate excellent results in all three investment universes Year-to-Date
• Significantly outperforming former winners focused on large cap growth stocks
• If you think about inflation you can either not see it at all or see it everywhere
• Looking at wages and basic consumer baskets, inflation has not been a concern at all over the last decade
• However, if you look at equity market and real estate valuations, the story is different:
Asset price inflation is everywhere and continues to change the structural distribution of wealth
• Those invested in real assets benefit while those confined to nominal assets loose
• This bifurcation is not healthy
• But: The case for real assets still looks much better than for nominal assets

Where is the next time-bomb hiding?

• The „Big Rotation“ continues: Former out-performers (Large Cap Growth) overtaken by higher quality and Small/Mid Caps
• Global Developed Markets were up 3.3%, Global Small Caps gained 2.0% and Emerging Markets declined 1.5%
• ARTICO stock selection significantly outperformed in all three investment universes in March and Year-to-Date
• Spectacular surge in implosions of companies and funds (Wirecard, Greensill, Archegos) should not be seen as a cumulation of random events
Such „accidents“ tend to happen in late stage of financial expansion
• Reason is growing deficiencies in common-sense risk management
• Omni-present risk management bureaucracy and meticulous regulatory oversight often misses true risks
• So: Where is the next time-bomb hiding? Derivatives? Credit expansion?
• And can the unlimited money supply prevent a financial market collapse?
• Only time will tell: In the meantime fasten seat-belts as the roller-coaster ride is not over
• The long term case for equities still looks much better than for nominal assets
• In such a fragile environment we recommend to avoid any extreme position in terms of style, factor exposures, sectors or individual holdings
• Artico Sustainable Equity Funds are well positioned to navigate through turbulent times, because: 
• First, Artico is invested in companies with fundamental characteristics of highest quality
• Second, Artico funds have no single style or single sector bias (growth, value, technology, etc)
• Third, Artico funds cover the full spectrum of market capitalization (large, mid and small caps)
• We are making progress with the CSSF to be ready to launch our new Artico Sustainable Golden Dragon Fund
• It will be different from other „Greater China Funds“
• It will have not only better fundamental characteristics, but also a much better ESG rating and a significantly lower carbon footprint.
• Please contact us, if you are interested to receive more information on our new fund project.

Is inflation a significant threat to equity markets?

• Wild roller-coaster markets with large ups and downs in February.
• First, markets were fearing overheating, inflation and earlier than expected rising interest rates
• Then they recovered, fueled by optimism on economic growth and company earnings…..
• Global Developed Markets were up 2.6%, Global Small Caps gained 4.4% and Emerging Markets advanced 0.8%
• Is inflation a significant threat to equity markets? 
• What if hefty catch-up demand leads to strong inflationary pressures?
• Equity markets should be able to deal with higher inflation rates
• The risk is not inflation itself
• It is rather the prospect of rising interest rates which would be very negative for markets given valuations are at all-time highs
• The key is therefore with central banks and their determination to keep interest rates low for longer than justifiable by emerging inflationary pressure
• In such a likely financial repression scenario (rising inflation with still artificially low interest rates), cash and bond holders will suffer most
• The awakening of inflationary expectations will certainly continue to stress equity markets
• But in an environment of rising inflation, the long term case for real assets like equities is much better than for nominal assets
• We recommend to be very cautious with investments too much focused on the past winners, i.e. large cap growth stocks
• Equity markets are still in the danger zone with very high historic valuations and several signs of bullish over-optimism
• Artico Sustainable Equity Funds are well positioned to navigate through trend reversals and potentially turbulent times

Contact

ARTICO Partners
Stockerstrasse 50
CH-8002 Zürich

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