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Photo Rosaine Cousin
Rosaine Cousin


Photo Rosaine Cousin

Can you explain your management process for this fund ?

The investment process includes criteria to analyse the brand's strength as well as the company's operational, financial and extra financial excellence. By adopting an SRI approach in 2021, the management strengthened the fund's investment process. Environmental and social challenges are becoming a growing part of consumer concerns. They expect brands to inform and commit themselves. Ultimately, only the brands whose companies are committed to the field in a responsible manner will stand out from the public. These companies are thus building a foundation for creating sustainable value for their shareholders. For example, Microsoft's governance is certainly one of the best performers in US tech. Its compliance with regulations on customer private data reinforces the traction of its Azure offer in the public cloud.

How do you find the “leaders of the future” ?

The central issue that drives management is to ensure that each company whose stock is held in the portfolio remains precisely the leader in the future. The ability of the brand to engage with the consumer and the generation of cash flows are decisive criteria. As financing conditions tighten around the world, we prefer companies with strong balance sheets that will be able to seize opportunities. Intact Financial Canada's leading property and casualty insurance company is a good example of this. With positions twice as large as its competitor in the auto insurance segment, it benefits from higher pricing power that secures its free cash flow generation. The group was thus able to take over the RSA group's insurance business in the United Kingdom, taking a position among the top five players in the market.

How did CM-AM Global Leaders perform in the turbulent year 2022 ?

The year 2022 was the worst year for the fund since its inception. C shares fell by 21.5% *. By way of comparison, the MSCI AC World denominated in euros dividend reinvested posted a more modest decline of 14.7% *, which it owes in part to the oil sector. Relative to its peers, your fund of leading brands does not merit and ends up on a comparable performance. Moreover, he beat the World growth index by a short head. While the fund sold digital brands such as Paypal, Adobe and Netflix, whose post covid period proved difficult, the strengthening of luxury brands proved fruitful. In addition, it is worth taking a step back: 2020 and 2021 were years of extraordinary stock market performance with gains of 14.3% * and 22.3% *. See the stocks of these companies blow. 2022 is also an incredible opportunity for our long term investors. We were able to invest in ASML, whose long term growth for its advanced technology semiconductor equipment remains unmatched.

What is your forecast for 2023 ?

2023 begins with some progress - reopening in China, more attractive valuations, energy recovery plans. However, it is difficult to pass and we will steer the management between the risks of downward revisions of company growth estimates and sustainably higher rates. The quality of the fundamentals of the companies chosen is an important reminder. Management favours exposure to stocks with visible growth drivers (Eli Lilly, TSMC, or benefiting from the reopening of China (Aia, Daikin). Among our renaissance brands, Moncler remains a strong conviction as the acquisition of Stone Island is paying off. Finally, we are starting 2023 with a reasonable fund valuation of 24x the 12 month PE for sales and EPS growth of 7.5% and 10.5%.

Drafting completed on 01/02/2023

* Past performance is not a guide to future performance
Reference to certain values is given for information purposes. It is not intended to promote direct investment in these instruments, nor does it constitute investment advice.
CM-AM Global Leaders is exposed to the following risks: Capital loss risk, equity market risk, sector risk, small cap equity investment risk, emerging market investment risk, currency risk, convertible bond risk, interest rate risk, credit risk, risk related to the impact of techniques such as derivatives, legal risk, operational risk, counterparty risk.
Document for professionals. The information contained in this document does not constitute investment advice in any way and its consultation is carried out under your full responsibility. Investing in a fund may present risks, investors may not get back the money invested. This fund is managed by Rosaine Cousin, manager at Crédit Mutuel Asset Management, a management company approved in France by the AMF under number GP 97-138, a public limited company with share capital of euros3871680. Registered office and offices Paris: 4 rue Gaillon 75002 Paris, Offices Strasbourg: 4 rue Frédéric Guillaume Raiffeisen 67000 Strasbourg, RCS Paris 388,555,021 - APE code 6630Z, intra Community VAT: FR 70,388,555 021.Crédit Mutuel Asset Management is an entity of Crédit Mutuel Alliance Fédérale. The fund may not be sold, recommended for purchase or transferred, by any means whatsoever, to the United States of America (including its territories and possessions), nor directly or indirectly benefit any ‘US Person,’ including any natural or legal person, resident or established in the United States.