CPR Invest – Global Lifestyles, a fund aiming to capture long-term consumer trends such as: demographic shifts, societal changes, digitisation of the economy.
The investment strategy select companies benefiting from long term consumer trends organised around four dimensions : digital consumption, health & wellness, leisure & entertainment and premium consumption.The Compartment invests mainly in equities of companies around the world.
At the heart of consumer trends
1. Consumption theme is led by three main societal evolutions
Consumption trends benefits from the evolution of:
Demography (e.g . increasing ageing of the population, Millennials purchasing power
Society: desire for a healthier life, a more sustainable consumption
Digital: digitization of the economy.
We thus identified 4 main current consumption trends: digital tools, health / well being, leisure & premium
2. Dynamics are global but also specific to geographical areas
The consumption theme benefits from the evolution of behaviours.
These changes occur in both developed and developing countries but with some discrepancies. If the access to famous trademarks is to be noted in developing countries, customers are searching for new experiences and a new way of consumption in developed countries.
3. Companies capitalizing on consumption trends
Companies in the investment universe are linked to all forms of consumption. Most are also distributing their product & services directly to the customers.
The innovation and/or differentiation capacities through services help showing a growth superior to the global economic growth.
In the end, only the companies with the best responsible practices will be included in the investable universe.
A 4 dimension universe gathering stocks with high growth potential in the consumer trends
Investment Process
The objective is to outperform the MSCI World (dividend reinvested) index over a long-term period (minimum of five years) by investing in international equities involved in the consumption related to individual self-fulfilment and well-being.
The investment universe is wide and multisector. The spectrum revolves around 4 axes:
Digital practical tools: e-commerce, virtual payment means, etc.
Health & well-being: sports, cosmetics, etc.
Leisure (indoor & outdoor): streaming services, DIY, restaurants, travels, etc.
Premium consumption: luxury, automotive, hostels, etc.
The investment process includes a sustainable approach to exclude the companies with the worst ESG ratings, as a whole or on specific criteria, and those subjected to controversies. A geographical and sector preference can be decided, depending on economic context and on specific sectors indicators such as tourism flows. The stock picking is based on a double analysis on qualitative criteria (attractiveness of the market in which the company is set, geographical exposure) and quantitative criteria (valuation, cost-effectiveness analysis).
Within each sector, a particular attention is given to the proper strategic outlook of each company management. The investment team is meeting about 100 companies each year to this end. The final portfolio is finally built according to the conviction level of the management team.
