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Equity Highlights
May 5, 2020 2
Performance
Schedule
Important Events This Week
▪ Tuesday: US ISM Services
▪ Wednesday: Markit PMIs, US Crude Oil Inventories
▪ Thursday: BOE Meeting, US Jobless Claims
▪ Friday: US job Report
Total return performance on both the portfolios and the indices – As of Friday evening
Strategy▪ European Global Leaders
▪ US Global Leaders
▪ Next-Gen Leaders
YtD -19.35% vs -21.22% / 1.87% alpha YtD -11.62% vs -11.82% / 0.20% alpha
Weekly 2.65% vs 4.44% / -1.79% alpha Weekly -0.07% vs -0.19% / 0.12% alpha
2019 32.10% vs 29.34% / 2.76% alpha 2019 35.66% vs 31.49% / 4.17% alpha
2018 -6.90% vs -11.26% / 4.36% alpha 2018 1.48% vs -4.39% / 5.86% alpha
Since Inception 124.80% vs 75.59% / 49.21% alpha Since Inception 235.74% vs 178.19% / 57.55% alpha
Since August 2011 Benchmark: EuroStoxx 50 Since August 2011 Benchmark: S&P 500
YtD -12.04% vs -15.89% / 3.84% alpha YtD -5.56% vs 0.14% / -5.70% alpha
Weekly 0.86% vs 0.70% / 0.15% alpha Weekly -0.13% vs -0.76% / 0.63% alpha
2019 31.59% vs 18.10% / 13.49% alpha 2019 33.55% vs 39.46% / -5.91% alpha
2018 -12.99% vs -16.04% / 3.05% alpha 2018 6.92% vs 0.01% / 6.91% alpha
Since Inception 15.06% vs -5.35% / 20.41% alpha Since Inception 54.62% vs 52.68% / 1.94% alpha
Since August 2017 Benchmark: Topix Since July 2017 Benchmark: Nasdaq
European Global Leaders US Global Leaders
Japanese Global Leaders Next-Gen Leaders
S&P 500 – Q1 Earnings
May 5, 2020 3
More than 50 % of S&P 500 companies have reported so far including all the Tech and Media mega caps.Overall, earnings have exceeded low expectations but with a smaller than average margin.Most companies have removed their guidance and expect a complicated Q2.
% Report % Surprise % Growth % Surprise % Growth
S&P 500 56% 1.1% 1.0% 0.3% -8.6%
Energy 56% 7.6% -11.4% 145.3% -0.1%
Materials 46% 0.6% -8.0% 3.7% -21.4%
Industrials 70% 0.4% -9.1% 8.9% -13.1%
Consumer Discretionary 44% 3.0% 6.7% -7.8% -15.3%
Consumer Staples 70% 0.9% 4.8% 4.1% 4.4%
Health Care 60% 3.0% 10.8% 9.1% 5.3%
Financials 85% -0.9% 0.9% -22.3% -37.0%
Information Technology 49% -1.9% 5.0% 0.3% 5.6%
Communication Services 45% -0.3% 3.4% 2.7% -0.8%
Utilities 21% -6.8% -3.6% 3.0% 7.0%
Real Estate 29% 2.1% 7.8% 1.9% 13.4%
Sales Earnings
Weekly Recap
May 5, 2020 4
Weekly Recap
❑ Market Review
▪ Global Markets rebounded sharply on strong US earnings and hopes of progress for a coronavirus
treatment. Europe’s virus death toll continues to decline as lockdown easing begins. The European
Commission announced a €7.5bn package to develop and manufacture a vaccine.
▪ Fed Chairman Powell said the coronavirus has brought the US economy to an abrupt halt, and is uncertain
how long the recession will last. The FOMC said in a unanimous statement that it “will use its tools and act as
appropriate to support the economy.” The Fed expanded the scope of a $500bn emergency lending
program that provides short-term credit to state and local governments.
▪ The ECB left rate unchanged, expanded its program of loans to banks at record-low rates and warned that
the eurozone economy could shrink by as much as 12%. It is also prepared to increase its QE and European
regulators will provide banks with a fourth round of capital relief.
▪ US GDP contracted at an annual rate of 4.8% in Q1 while French GDP contracted at a 5.8% rate.
May 5, 2020 5
European Global Leaders – Weekly Recap
❑ Equity Top News
▪ The strategy had positive performance, but underperformed its benchmark.
▪ Banks were the best sector last week. Banco Santander released earnings slightly better than expected,
even if the bank set aside €1.6bn, the highest provisions by a Eurozone bank so far.
▪ Volkswagen expects to be profitable on a FY basis, despite car sales dropped by 23% on the year, causing
operating profit to tumble 81% in Q1, forcing the manufacturer to withdraw its outlook for 2020.
▪ After a strong increase in April, Healthcare was last week the worst sector as investors took profit, even if
Novartis and AstraZeneca Q1 earnings beat expectations and maintained their 2020 profit guidance.
AstraZeneca agreed to make an experimental coronavirus vaccine, and Roche received authorization from
the FDA for its Covid-19 test and has already started making shipments.
▪ Royal Dutch Shell cut its dividend for the first time since WW2 to preserve cash as it prepares for a
protracted slump in demand for oil. It also suspended share buybacks after its net profit almost halved in Q1.
May 5, 2020 6
US Global Leaders – Weekly Recap
❑ Equity Top News
▪ The strategy is positive and similar to its benchmark.
▪ Facebook revenue jumped 18% and sales were steady in April despite some pressure on ad prices. Daily
average users for its Facebook, WhatsApp and Instagram platforms rose to 2.36bn.
▪ Alphabet Q1 sales beat estimates thanks to a 33.5% rise in YouTube revenues and a 52% jump in Google
Cloud sales. Search and display ad revenue dropped more than 10% in March as corporates slash their
marketing budgets.
▪ Apple’s Q1 sales grew 1% but profit fell 3%. Services and wearables business grew 18% while hardware
sales dropped 7%. It raised its dividend by 6% but reduced its buyback program to $50bn. Apple is delaying
the production of its new iPhones by about a month, as the pandemic disrupts manufacturing.
▪ Microsoft released better than expected Q1 earnings and sales driven by a 27% jump in cloud sales amid a
boom in remote working. It also confirmed the launch of the new Xbox this holiday season.
▪ Amazon dropped despite a 26% jump in Q1 sales as it spent its entire $4bn profit to keep logistics
operations running smoothly during the pandemic and as shipping costs rose 49%. The company also noted
reduced advertising revenues. Amazon Web Services sales grew 33% but underperformed competitors.
▪ Merck lowered its FY20 guidance, expecting a $2.1bn revenue hit over prescription drug sales as many
patients with chronic conditions stay away from their doctors. However, Q1 earnings beat expectations.
▪ ExxonMobil posted its first quarterly loss following its 1999 merger, driven by a $2.9bn charge linked to
write-downs from the collapse in oil prices. It will also slash its 2020 spending by 30% to $23bn.
May 5, 2020 7
Next-Gen Leaders – Weekly Recap
❑ Equity Top News
▪ The strategy had a strong positive performance and profited from the high beta of its components.
▪ ServiceNow Q1 EPS beat estimates and management projected rising sales in Q2 amid strong demand for
their business workflow software.
▪ CoStar Group reported strong results. Q1 revenue increased 19% with Apartments.com revenue growing
20% and LoopNet revenues up 23% YoY, traffic to platforms reached record levels with an average of 55M
monthly unique visitors. But company is withdrawing its previously announced guidance for FY 2020.
▪ IQVIA released solid Q1 2020 results and its research pipeline remains solid despite clinical trial disruptions
in the near-term.
▪ Illumina’s Consumables and Services rose 15% and 13% respectively, and company sees a stabilization in
sequencing run trends in recent weeks. But sales of sequencing systems dropped 25%.
▪ Wirecard failed to reassure investors after KPMG finally delivered its special investigation audit report.
KPMG said no significant findings have been made which would require an adjustment of the annual
accounts 2016-2018, but has identified organizational weakness, which had already been identified by
Wirecard. It will publish the final report as soon as possible.
▪ Stryker’s sales dropped 30-40% in April amid deferrals of surgical procedures and a drop of hospitals’
Capex. Q1 EPS beat estimates.
May 5, 2020 8
Conviction Portfolios
European Global Leaders
US Global Leaders
Japan Global Leaders
Next-Gen Leaders
May 5, 2020 9
European Global Leaders
May 5, 2020 10
Total Return performance on both the portfolio and the index.
The full list of constituents is available on our website.
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European Global Leaders EuroStoxx 50 Total Return
European GL EuroStoxx 50 Delta
Weekly Performance 2.65% 4.44% -1.79%
YtD Performance -19.35% -21.22% 1.87%
1Y Volatility 25.6% 28.0% -2.4%
Perf.since inception 122.9% 75.3% 47.6%
Annualized Perf. 13.8% 9.5% 4.3%
2019 32.1% 29.3% 2.8%
2018 -6.9% -11.3% 4.4%
Volatility 16.1% 20.4% -4.2%
Max Draw Down -36.1% -38.2% 2.1%
Inception Date 31 Aug 2011
European Global Leaders
May 5, 2020 11
Weights within the portfolio are comprised between 2% and 5%
Name TickerExch
CodeTheme Sector
Mkt Cap
($bn)Country
Nestlé NESN SW Food Products Consumer Staples 316.9 Switzerland
Roche ROG SW Pharmaceuticals Health Care 308.7 Switzerland
Novartis NOVN SW Pharmaceuticals Health Care 227.1 Switzerland
LVMH MC FP Luxury Goods Consumer Discretionary 190.2 France
Novo Nordisk NOVOB DC Pharmaceuticals Health Care 156.2 Denmark
L'Oréal OR FP Household Products Consumer Staples 147.9 France
SAP SAP GY Software Information Technology 143.5 Germany
Astrazeneca AZN LN Pharmaceuticals Health Care 134.8 Britain
RDSA (EUR) RDSA NA Big Oil Energy 132.0 Netherlands
Unilever NV UNA NA Food and Household Products Consumer Staples 131.7 Britain
ASML ASML NA Semiconductors Equipment Information Technology 125.2 Netherlands
Total FP FP Big Oil Energy 89.0 France
Inditex ITX SM Apparel Consumer Discretionary 80.0 Spain
Allianz ALV GY Diversified Insurance Financials 72.1 Germany
Volkswagen VOW3 GY Automobiles Consumer Discretionary 69.2 Germany
Kering KER FP Luxury Goods Consumer Discretionary 62.8 France
Schneider Electric SU FP Energy Management Industrials 51.6 France
Essilor EL FP Medical Devices Consumer Discretionary 51.1 France
Heineken HEIA NA Brewers Consumer Staples 48.2 Netherlands
Vinci DG FP Infrastructure Industrials 47.4 France
Dassault Systemes DSY FP Software Information Technology 40.0 France
Philips PHIA NA Health Care Health Care 39.2 Netherlands
AXA CS FP Diversified Insurance Financials 39.1 France
BNP BNP FP Banks Financials 36.9 France
Banco Santander SAN SM Banks Financials 34.7 Spain
Ferrari RACE IM Luxury Goods Consumer Discretionary 29.4 Italy
Intesanpaolo ISP IM Banks Financials 26.1 Italy
Vivendi VIV FP Media Communication Services 25.3 France
Fresenius FRE GY Diversified Health Care Health Care 23.3 Germany
Thales HO FP Defense Industrials 16.0 France
Ubisoft UBI FP Video Games Communication Services 9.2 France
US Global Leaders
May 5, 2020 12
Total Return performance on both the portfolio and the index.
The full list of constituents is available on our website.
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US Global Leaders S&P 500 Total Return
US GL S&P 500 Delta
Weekly Performance -0.07% -0.19% 0.12%
YtD Performance -11.62% -11.82% 0.20%
1Y Volatility 32.1% 32.6% -0.5%
Perf.since inception 239.3% 181.5% 57.8%
Annualized Perf. 21.8% 18.2% 3.6%
2019 35.7% 31.5% 4.2%
2018 1.5% -4.4% 5.9%
Volatility 16.6% 17.0% -0.3%
Max Draw Down -32.7% -33.8% 1.0%
Inception Date 31 Aug 2011
US Global Leaders
May 5, 2020 13
Weights within the portfolio are comprised between 2% and 5%
Name TickerExch
CodeTheme Sector Mkt Cap ($bn)
Apple AAPL US Hardware Information Technology 1364.9
Microsoft MSFT US Software Information Technology 1244.9
Alphabet GOOGL US Internet Media Communication Services 992.6
Amazon AMZN US e-Commerce Consumer Discretionary 923.2
Facebook FB US Internet Media Communication Services 630.7
Berkshire Hathaway BRK/B US Investment Company Financials 558.3
JP Morgan JPM US Banks Financials 428.8
Visa V US Payment Technology Information Technology 393.3
Johnson & Johnson JNJ US Pharmaceuticals Health Care 386.9
Mastercard MA US Payment Technology Information Technology 317.0
Bank of America BAC US Banks Financials 306.3
Exxon XOM US Big Oil Energy 292.3
AT&T T US Big Telco Communication Services 276.6
Walt Disney DIS US Media & Entertainement Communication Services 260.1
Verizon VZ US Telcos Communication Services 244.4
Merck & Co MRK US Pharmaceuticals Health Care 233.1
Chevron CVX US Big Oil Energy 219.6
Pepsico PEP US Food Products Consumer Staples 194.1
Citigroup C US Banks Financials 171.7
Adobe ADBE US Software Information Technology 166.0
Nike NKE US Apparel Consumer Discretionary 160.1
McDonald's MCD US Restaurants Consumer Discretionary 158.0
Medtronic MDT US Medical Devices Health Care 157.3
Bristol Myers BMY US Pharmaceuticals Health Care 155.9
Costco COST US Mass Merchants Consumer Staples 132.9
Accenture ACN US IT Services Information Technology 131.8
Honeywell HON US Diversified Industrials Industrials 129.1
Starbucks SBUX US Restaurants Consumer Discretionary 108.1
Goldman Sachs GS US Banks Financials 90.4
Japanese Global Leaders
May 5, 2020 14
Total Return performance on both the portfolio and the index.
The full list of constituents is available on our website.
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Japan Global Leaders Topix Total Return
Japan GL Topix Delta
Weekly Performance 0.86% 0.70% 0.15%
YtD Performance -12.04% -15.89% 3.84%
1Y Volatility 22.4% 20.1% 2.3%
Perf.since inception 15.1% -5.3% 20.4%
Annualized Perf. 7.6% -2.8% 10.5%
2019 31.6% 18.1% 13.5%
2018 -13.0% -16.0% 3.0%
Volatility 20.6% 17.4% 3.2%
Max Draw Down -28.1% -32.2% 4.1%
Inception Date 31 Aug 2017
Japanese Global Leaders
May 5, 2020 15
Weights within the portfolio are comprised between 4% and 15%
Name TickerExch
CodeTheme Sector
Mkt Cap
($bn)
Toyota Motor 7203 JT Automobiles Consumer Discretionary 228.0
Softbank Group 9984 JT Technology Conglomerate Communication Services 92.6
Sony 6758 JT Consumer Electronics Consumer Discretionary 91.8
Keyence 6861 JT Factory Automation Information Technology 86.8
Recruit Holdings 6098 JT Human Resources Industrials 65.3
Nintendo 7974 JT Video Games Communication Services 51.4
Nidec 6594 JT Precision Motors Industrials 41.0
Kao 4452 JT Household Products Consumer Staples 40.0
Shiseido 4911 JT Cosmetics Consumer Staples 28.6
Terumo 4543 JT Medical Devices Health Care 27.3
Komatsu 6301 JT Construction Machinery Industrials 23.2
Next-Gen Leaders
May 5, 2020 16
Total Return performance on both the portfolio and the index.
The full list of constituents is available on our website.
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Next-Gen Leaders Nasdaq 100 Total Return
Next-Gen Nasdaq Delta
Weekly Performance -0.13% -0.76% 0.63%
YtD Performance -5.56% 0.14% -5.70%
1Y Volatility 33.1% 33.6% -0.5%
Perf.since inception 54.6% 52.7% 1.9%
Annualized Perf. 24.7% 23.9% 0.8%
2019 33.5% 39.5% -5.9%
2018 6.9% 0.0% 6.9%
Volatility 26.8% 25.3% 1.4%
Max Draw Down -32.9% -28.0% -4.9%
Inception Date 31 Jul 2017
Next-Gen Leaders
May 5, 2020 17
Weights within the portfolio are comprised between 2% and 5%
Name TickerExch
CodeGroup Theme Category Sector Risk Category
Mkt Cap
($bn)Country
Palo Alto Network PANW US B2B CyberSecurity Firewalls Information Technology Core 23.6 United States
CyberArk Software CYBR US B2B CyberSecurity Priviledged Access Information Technology Speculative 5.2 Israel
Illumina ILMN US B2B Health Care Diagnostics Health Care Core 47.1 United States
Stryker SYK US B2B Health Care Surgical Robot Health Care Core 77.4 United States
Intuitive Surgical ISRG US B2B Health Care Surgical Robot Health Care Core 69.0 United States
Cap Gemini CAP FP B2B Knowledge Consulting Information Technology Core 21.7 France
Splunk SPLK US B2B Knowledge Data Analysis Information Technology Speculative 24.3 United States
CoStar Group CSGP US B2B Knowledge Information Industrials Core 23.8 United States
IQVIA IQV US B2B Knowledge Pharmaceutical Research Health Care Core 30.9 United States
IHS Markit INFO US B2B Knowledge Research & Analytics Industrials Speculative 31.8 Britain
Gartner IT US B2B Knowledge Research & Analytics Information Technology Core 14.2 United States
Adobe ADBE US B2B Productivity Creativity & Design Information Technology Core 166.0 United States
Dassault Systemes DSY FP B2B Productivity Creativity & Design Information Technology Core 45.9 France
Autodesk ADSK US B2B Productivity Creativity & Design Information Technology Core 42.0 United States
Ansys ANSS US B2B Productivity Creativity & Design Information Technology Core 22.6 United States
Trimble TRMB US B2B Productivity IoT Information Technology Core 10.6 United States
Salesforce.com CRM US B2B Productivity SaaS - Productivity Information Technology Core 160.6 United States
Servicenow NOW US B2B Productivity SaaS - Productivity Information Technology Core 57.5 United States
Workday WDAY US B2B Productivity SaaS - Productivity Information Technology Core 41.2 United States
Coupa Software COUP US B2B Productivity SaaS - Productivity Information Technology Speculative 10.8 United States
Zalando ZAL GY B2C E-Commerce Retail Consumer Discretionary Speculative 13.2 Germany
Paypal PYPL US B2C FinTech Payment Technology Information Technology Core 134.9 United States
Square SQ US B2C FinTech Payment Technology Information Technology Speculative 30.2 United States
Wirecard WDI GY B2C FinTech Payment Technology Information Technology Speculative 17.7 Germany
Match Group MTCH US B2C Media Social Communication Services Speculative 25.5 United States
Activision Blizzard ATVI US B2C Media Video Games Communication Services Core 45.8 United States
Electronic Arts EA US B2C Media Video Games Communication Services Core 32.0 United States
Take-Two Interactive TTWO US B2C Media Video Games Communication Services Core 14.4 United States
Ubisoft UBI FP B2C Media Video Games Communication Services Speculative 8.7 France
Contacts
May 5, 2020 18
CONTACT US
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May 5, 2020 19