Equity fund geared to sustainable long-term growth
Econopolis Global Equity is a pure equity fund that invests in equities worldwide with no geographic restriction. We focus primarily on developed markets though (Europe, North America and Japan). Our Econoshock topics form a key theme in our choice of equities.
Well thought-out choices based on our own analyses and diversification help to reduce the risk profile that is inherent to equity investments.
Economic analysis & market insights
Our team of economists keeps a close eye on the global macro-economic climate and charts the opportunities and challenges. Our equities analysts translate economic expectations to company level and examine individual companies. That gives us a global picture of the economic cycle we are in, and an assessment of the situation in the financial markets.
Our investment strategy is based on the six sustainability topics described in the book Econoshock by Econopolis founder Geert Noels and highlighted in the TV documentary of the same name. Within each of these topics, we ask ourselves one central question:
We invest in companies with a sustainable business model operating in a forward-looking market and protected by a competitive advantage. Furthermore, we examine the quality of the management to determine whether the business is being run in the interests of the shareholders and society. Only companies like this can create long-term value. If a company passes this test, we carry out a financial analysis to define the price at which we want to invest in the company.
Global leaders & businesses of the future
Among other things, we invest in global leaders or “all time“ winners. Companies from sectors with stable growth that have proven over the years that they not only can survive crises, but also can emerge from them stronger. Finally we look for the top companies of the future that are already delivering pleasing results today.
Complete flexibility and active management
We do not use derivatives, we do not engage in explicit hedging or any short selling. What you see is what you get. Our cost structure is low and transparent: no entry fees, no exit fees, no performance-related fees. Our fund managers spread the resources in a dynamic and flexible way over countries, currencies and sectors. The fund invests in international equities and limits risk through broad diversification of the portfolio.
Why Global Equity?
Econopolis Global Equity can invest unrestrictedly in equities around the world. We apply no geographic restrictions in our selection to be able to anticipate global opportunities for growth. Investments referring to emerging economies also have their place in the portfolio. However we prefer to achieve this in this fund through companies in the West that generate a major part of their activities and turnover in developing countries. We only accept local values if they have sufficient scale and liquidity.
When selecting the equities, we take the sustainable nature of the businesses in question into account and we do not invest in companies with a low sustainability level.
Team of specialists
The fund managers form a specialist team with extensive and broad experience. Interaction and consultation are key issues within the team. We adopt a long-term perspective and strive for steady growth of the asset value without losing sight of the risk of a downturn.
Disciplined decision-making process
One of the things required by our investment process is a comprehensive financial analysis that forces us to exercise the necessary discipline in terms of valuations. We do not simply follow the markets, nor are we tempted by investments that do not meet our valuation criteria. We also steer clear if we have doubts about the corporate governance of a company. Moreover, our medium-term investment horizon ensures that the number of transactions in the fund remains relatively low.
Blindly following an index is not part of our investment philosophy. We do not invest in countries, sectors or companies simply because they are part of an index; we only invest in line with our own convictions.
Characteristics and fees
- Name: Econopolis Global Equity
- Type: Luxembourg SICAV
- Capitalisation (ISIN: LU1248447622) and distribution (ISIN: LU1248447978)
- Launch date: 04/08/2015
- Management fees I-class: 0.75%
- No entry fees, no exit fees
- No performance fees
I-class reserved for institutional investors
- The fund invests only in equities with a focus on developed markets.
- Flexibility: the current investment policy plans that the fund managers may hold up to 10% cash.
- The composition of the fund is based on strong convictions and sound insights, acquired from intensive research on the ground.
- The focus is on specific industries and companies, carefully selected from an independent viewpoint and with no benchmark.
- The volatility of equity investments requires an investment horizon of at least 5 years.