Signatory of Principles for Responsible Investment Icon

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

Life after the Point-Of-No-Return…

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

Life after the Point-Of-No-Return…

• Bullish markets in August including a rebound in Emerging Markets
• Investors seem not influenced by Afghanistan developments, but closely monitor inflation uptick (temporary or not?) and impact of new Covid variants (economic recovery slowdown?)
• Some uncertainty around the new China paradigm of „common prosperity“
• Global Developed Markets were up 2.5%, Global Small Caps advanced 2.3% and Emerging Markets were up 2.6%
• Recent correction in China reminds investors of regulatory risks involved when investing in China
• In a western culture of free markets such interventions may indeed feel quite odd.
• But: We believe the vision of „shared prosperity“ will make the Chinese economy stronger in the longer term
• China continues to represent the single largest growth opportunity in the world 
• Central banks are slowly preparing markets to expect a tapering (i.e. a reduced asset purchase) and eventually even a rise in interest rates
• Huge government deficits and their refinancing need suggest a continued monetization of future fiscal deficits
The point-of-no-return may already have been reached where there is no way back
• What does life look like in the „post-modern monetary“ world?
• As long as the trust in the financial system is not eroded, such monetization can go on for a very long time
Real assets represent the only viable response to such monetary exuberance
• 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
 
While investor confidence in China has taken a hit and market timing is a very difficult call to make, the improved valuations in China may well represent an excellent opportunity to start a Sustainable Investment into China. We are operationally ready to launch the ARTICO Sustainable Golden Dragon Fund. It will be very different from other „Greater China Funds“ as it will have not only 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, if you are interested to receive more information on our new fund project.

„The Monkeys should not be scared by a slaughtered chicken“

• Continued gains for developed equity markets, while emerging markets take a hit.
• Global Developed Markets were up 1.8%, Global Small Caps were flat (- 0.1%) and Emerging Markets were down 6.7%
• ARTICO stock selection continued to generate excellent results in all three investment universes
• Citywire awarded Artico Partners a GOLD group rating in emerging markets
• Markets were shocked when Chinese government announced it would disallow profit-making from private teaching activities
• The old Chinese saying „kill the chicken to scare the monkeys“ was quickly evoked
• Should this scare investors away from China? We don’t think so!
• China represents the biggest growth opportunity in the world 
• Political and regulatory risk is – and has always been – inherent when investing in China
• Investors should therefore invest in a diversified manner across Chinese sectors to avoid nasty surprises (like we do in our ARTICO Sustainable Emerging Market Fund)
• Globally, central banks are still behind the curve and in a dilemma
• Economic growth does not warrant such a loose monetary policy
• Hoping for some, but not too much inflation is a risky balancing act
• Given huge government debt levels, it is however unlikely we will see significantly rising rates any time soon
• Despite high valuations (see page 2) real assets should continue to be preferred over nominal assets

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

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

Beware of Exuberance in Large Cap Growth Stocks!

• Markets were overall flat in January with the exception of emerging markets
• Global developed markets were down 1.0%, global small caps gained 0.7% and emerging markets advanced 3.1%
• Investors started to worry about the pandemic (delay in vaccines, new mutations) and the risk of a slower than expected economic recovery
• Artico’s stock selection contributed very positively across all funds
OUTLOOK:
• Since a couple of years performance of large cap growth companies has been particularly strong
• This has led to a significant valuation differential with a high potential for a reversal
• Of course market distortions can prevail for much longer than one would think 
• The time has come to be very cautious with focused investments in the past winners like large cap growth stocks
• Equity markets more generally reached the danger zone with very high historic valuations and several signs of bullish over-optimism
• Markets are therefore vulnerable for a correction
• However, given expansion of central bank balance sheets and piling up of government debt, nominal assets (bonds) look even less attractive
The long term case for real assets like equities is therefore very strong
• Artico Sustainable Equity Funds are well positioned to navigate through trend reversals and potentially turbulent times for three reasons:
• First, Artico is invested in companies with fundamental characteristics of highest quality
• Second, Artico funds have no single style bias (growth versus value)
• Third, Artico funds cover the full spectrum of market capitalization (large, mid and small caps)

Contact

ARTICO Partners
Stockerstrasse 50
CH-8002 Zürich

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