Equity Highlights
January 7, 2020 2
Performance
ScheduleImportant Events This Week
Tuesday: US ISM Services, US Durable Goods Orders
Wednesday: US Crude Oil Inventory
Thursday: US Jobless Claims
Friday: US Monthly Job Report
Total return performance on both the portfolios and the indices
Strategy European Global Leaders
US Global Leaders
Next-Gen Leaders
YtD 1.04% vs 0.75% / 0.28% alpha YtD 0.39% vs 0.15% / 0.24% alpha
Weekly 0.06% vs -0.24% / 0.29% alpha Weekly 0.08% vs -0.12% / 0.20% 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 181.59% vs 124.57% / 57.03% alpha Since Inception 281.39% vs 215.97% / 65.42% alpha
Since August 2011 Benchmark: EuroStoxx 50 Since August 2011 Benchmark: S&P 500
YtD 0.00% vs 0.00% / 0.00% alpha YtD 0.86% vs 0.72% / 0.14% alpha
Weekly -0.48% vs -0.68% / 0.20% alpha Weekly 0.36% vs 0.29% / 0.07% 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 30.82% vs 12.52% / 18.30% alpha Since Inception 65.13% vs 53.56% / 11.57% alpha
Since August 2017 Benchmark: Topix Since July 2017 Benchmark: Nasdaq
European Global Leaders US Global Leaders
Japanese Global Leaders Next-Gen Leaders
Global Leaders - Performance per Year
-20%
-10%
0%
10%
20%
30%
40%
2011 2012 2013 2014 2015 2016 2017 2018 2019
Global Leaders Europe EuroStoxx Global Leaders US S&P 500
January 7, 2020 3
Global Leaders – Relative performance per Year
January 7, 2020 4
-10%
-5%
0%
5%
10%
15%
2011 2012 2013 2014 2015 2016 2017 2018 2019
Global Leaders Europe Global Leaders US
Global Leaders - ESG Rating
RobecoSAM is an investment company, based in Zurich with a focus on sustainability investments.
They provide a sustainability score on thousands of global companies. The score is measured as a percentile
rank, 100 representing the highest sustainability score.
They look at three aspects :
The Social Dimension: Human Capital Development, Talent Attraction & Retention, Health & Safety, etc…
The Environmental Dimension: Environmental Policy & Management, Operational Eco-Efficiency, Climate
Strategy, etc…
The Economic Dimension: Corporate Governance, Codes of Business Ethics, Risk & Crisis Management,
Customer Relationship Management, Tax Strategy, etc…
The Global Leaders are well established, successful companies that tend to have a good ESG rating with an
average score above 60.
On the other hand, the Next-Gen Leaders are younger, fast growing companies that focus primarily on product
development and client acquisition and thus tend to have a sub average sustainability score.
January 7, 2020 5
Companies with a market cap. above $100bn
January 7, 2020 6
There are now 111 companies that trade
with a market capitalization above $100bn.
Three have a market cap greater that
$1Trn and 8 have a market cap greater
than $500bn.
62 are American, 27 are European and 11
are Chinese (the others are from Saudi
Arabia, Japan, India and Canada).
21 are Tech companies, 18 are Financials
and 18 are Healthcare companies.
The table only shows the first 37
companies, please contact us for more
details.
NameMkt Cap
($bn)
Revenue
($bn)Sector
Country
Name
ARAMCO 1874.1 315.1 Energy Saudi Arabia
Apple 1304.8 260.2 Information Technology United States
Microsoft 1203.1 125.8 Information Technology United States
Alphabet 922.9 136.8 Communication Services United States
Amazon 916.2 232.9 Consumer Discretionary United States
Facebook 585.3 55.8 Communication Services United States
Alibaba 569.0 56.2 Consumer Discretionary China
Berkshire Hathaway 553.7 225.4 Financials United States
Tencent 468.9 47.3 Communication Services China
JP Morgan 437.2 131.4 Financials United States
Johnson & Johnson 383.9 81.6 Health Care United States
Visa 369.9 23.0 Information Technology United States
WalMart 337.2 514.4 Consumer Staples United States
Nestlé 321.3 93.8 Consumer Staples Switzerland
Bank of America 316.8 110.6 Financials United States
Procter & Gamble 311.5 67.7 Consumer Staples United States
Mastercard 301.2 15.0 Information Technology United States
Exxon 295.2 279.3 Energy United States
ICBC 298.5 169.1 Financials China
Samsung Electronics 284.2 221.6 Information Technology South Korea
TSMC 292.7 34.2 Information Technology Taiwan
AT&T 285.5 170.8 Communication Services United States
UnitedHealth 278.5 226.2 Health Care United States
Roche 278.0 58.1 Health Care Switzerland
Walt Disney 260.7 69.6 Communication Services United States
Intel 260.3 70.8 Information Technology United States
Verizon 253.9 130.9 Communication Services United States
Novartis 239.3 53.2 Health Care Switzerland
Home Depot 238.2 108.2 Consumer Discretionary United States
Coca-Cola 237.1 34.3 Consumer Staples United States
LVMH 238.1 55.3 Consumer Discretionary France
RDSA (GBP) 234.0 388.4 Energy Netherlands
Merck & Co 231.6 42.3 Health Care United States
Toyota Motor 231.5 272.6 Consumer Discretionary Japan
Chevron 227.9 158.9 Energy United States
Wells Fargo 227.5 101.1 Financials United States
Ping An Insurance 223.5 161.0 Financials China
European Global Leaders – Weekly Recap
Market Wise
The EuroStoxx jumped in the middle of the week after news of policy support from China’s central bank to
boost its economy, but finally fell after a US airstrike killed a top Iranian commander.
The strategy strongly outperformed its benchmark.
Alpha Wise
Vivendi jumped after Tencent agreed to buy 10% of Universal Music Group after months of talks. The deal
values the world’s biggest music company at €30bn. Tencent and its partners can increase their stake to as
much as 20% at the same valuation until January 15, 2021.
Total rose as other oil companies after the US killed an Iranian General in an airstrike. Investors were
concerned by a possible supply disruption due to escalating tensions with a heightened risk of attacks near
energy facilities.
EssilorLuxottica fell after the company said it was the target of a €190M fraud at a factory in Thailand. The
effective final amount is subject to decrease due to insurance, anticipated recovery of funds currently frozen
on various bank account, and filed legal complaints in Thailand. This amount should also be put into
perspective given the annual free cash flow capacity of € 2Bn and a market cap of € 60Bn.
Novo Nordisk dropped after an analyst cut the recommendation to neutral from buy, due to competition
expected to intensify through 2022 pressuring global insulin pricing.
January 7, 2020 7
US Global Leaders – Weekly Recap
Market Wise
US Markets jumped in the middle of the week after news of policy support from China’s central bank to boost
its economy and after US President Donald Trump said he will sign the first phase of a trade deal with China
on January 15. It finally fell after a US airstrike killed a top Iranian commander.
The strategy strongly outperformed its benchmark.
Alpha Wise
Exxon Mobil and Chevron rose as other oil companies after the US killed an Iranian General in an airstrike.
Investors were concerned by a possible supply disruption due to escalating tensions with a heightened risk
of attacks near energy facilities.
January 7, 2020 8
Next-Gen Global Leaders – Weekly Recap
Market Wise
Nasdaq jumped in the middle of the week after news of policy support from China’s central bank to boost its
economy and after US President Donald Trump said he will sign the first phase of a trade deal with China on
January 15. It finally fell, but still positive, after a US airstrike killed a top Iranian commander.
The strategy outperformed its benchmark.
Alpha Wise
Illumina slid after it agreed with Pacific Biosciences to terminate their merger agreement due to a lengthy
regulatory approval process and a continued uncertainty of the ultimate outcome.
January 7, 2020 9
Investment Recommendations
January 7, 2020 10
Global Leaders
January 7, 2020 11
Benchmark: S&P 500Benchmark: EuroStoxx 50
European Portfolio US Portfolio
The Global Leaders are quality companies that we believe are fit for long-term investment.
Check our website for more information.
*Since August 2011
Portfolio Benchmark Delta Annualized Portfolio Benchmark Delta Annualized
Performance 181.59% 124.57% 57.03% 13% Performance 281.39% 215.97% 65.42% 17%
Weekly Perf. 0.1% -0.2% 0.3% Weekly Perf. 0.1% -0.1% 0.2%
Performance YTD 1.04% 0.75% 0.28% Performance YTD 0.39% 0.15% 0.24%
Volatility 14.3% 18.8% -4.5% Volatility 13.4% 13.7% -0.3%
Max DrawDown -18.7% -27.8% 9.1% Max DrawDown -18.8% -19.4% 0.6%
-20
30
80
130
180
230Index Benchmark
-10
40
90
140
190
240
Index Benchmark
Global Leaders – Current List
12January 7, 2020
European Portfolio US Portfolio
Name Ticker Exch Code Theme
Apple AAPL US Hardware
Microsoft MSFT US Software
Alphabet GOOGL US Internet Media
Amazon AMZN US e-Commerce
Facebook FB US Internet Media
Berkshire Hathaway BRK/B US Investment Company
JP Morgan JPM US Banks
Visa V US Payment Technology
Johnson & Johnson JNJ US Pharmaceuticals
Exxon XOM US Big Oil
Bank of America BAC US Banks
AT&T T US Big Telco
Mastercard MA US Payment Technology
Walt Disney DIS US Media & Entertainement
Verizon VZ US Telcos
Chevron CVX US Big Oil
Merck & Co MRK US Pharmaceuticals
Pepsico PEP US Food Products
Citigroup C US Banks
McDonald's MCD US Restaurants
Medtronic MDT US Medical Devices
Adobe ADBE US Software
Nike NKE US Apparel
Costco COST US Mass Merchants
Honeywell HON US Diversified Industrials
Accenture ACN US IT Services
Starbucks SBUX US Restaurants
Bristol Myers BMY US Pharmaceuticals
Goldman Sachs GS US Banks
Name Ticker Exch Code Theme
Nestlé NESN SW Food Products
Roche ROG SW Pharmaceuticals
RDSA (EUR) RDSA NA Big Oil
LVMH MC FP Luxury Goods
Novartis NOVN SW Pharmaceuticals
SAP SAP GY Software
L'Oréal OR FP Household Products
Unilever NV UNA NA Food and Household Products
Total FP FP Big Oil
Novo Nordisk NOVOB DC Pharmaceuticals
Astrazeneca AZN LN Pharmaceuticals
Airbus AIR FP Aerospace
ASML ASML NA Semiconductors Equipment
Allianz ALV GY Diversified Insurance
Volkswagen VOW3 GY Automobiles
Inditex ITX SM Apparel
Kering KER FP Luxury Goods
BNP BNP FP Banks
Banco Santander SAN SM Banks
AXA CS FP Diversified Insurance
Vinci DG FP Infrastructure
Essilor EL FP Medical Devices
Heineken HEIA NA Brewers
Philips PHIA NA Health Care
Dassault Systemes DSY FP Software
Vivendi VIV FP Media
Ferrari RACE IM Luxury Goods
Fresenius FRE GY Diversified Health Care
Thales HO FP Defense
Ubisoft UBI FP Video Games
Japan Global Leaders
January 7, 2020 13
Benchmark: Topix
Japan Portfolio
We have introduced a Japanese version of the Global Leaders portfolio. Check our website for more information.
*Since September 2017
NameMkt Cap
($bn)Sector
Toyota Motor 199.6 Consumer Discretionary
Softbank Group 107.6 Telecommunication Services
Keyence 67.4 Information Technology
Nintendo 48.2 Information Technology
Nidec 42.7 Industrials
Kao 38.8 Consumer Staples
Shiseido 27.1 Consumer Staples
Komatsu 27.0 Industrials
Terumo 21.8 Health Care
Recruit Holdings 53.6 Industrials
Fujitsu 75.5 Consumer DiscretionaryPortfolio Benchmark Delta
Performance 30.82% 12.52% 18.30%
Weekly Perf. -0.5% -0.7% 0.2%
Performance YTD 0.00% 0.00% 0.00%
Volatility 18.2% 14.7% 3.5%
Max DrawDown -26.1% -24.4% -1.6%
-10
0
10
20
30
40Index Benchmark
Next-Gen Leaders
January 7, 2020 14
Benchmark: Nasdaq
Next-Gen Leaders
Next-Gen Leaders are cutting-edge companies with exciting growth profiles. Check our website for more information.
*Since July 2018
Communication Services Industrials
Information Services Information Services
Online Dating Website Research & Analytics
Social Network Information Technology
Video Games Big Data Analytics
Web Advertising Cloud Based - CRM Application
Consumer Discretionary Cloud Based - HR Application
Food delivery Cloud-Based Software and Services
Online Fashion Retail Creativity Software
Health Care Design Software
DNA Sequencing Engineering Software
Human Data Science Internet Services
Medical Robots Navigation Systems
Medical Technology Payment Technologies
Research & Analytics
Next-Gen Investment Themes
Portfolio Benchmark Delta
Performance 65.13% 53.56% 11.57%
Performance 5D 0.4% 0.3% 0.1%
Performance YTD 0.86% 0.72% 0.14%
Volatility 21.3% 18.5% 2.8%
Max DrawDown -27.1% -22.7% -4.3%
-10
0
10
20
30
40
50
60
70Index Benchmark
Contacts
Union Securities Switzerland Research
Tel: +41 22 59 18 64
Union Securities Switzerland SA is a FINMA-registered Securities Dealer.
Union Securities Switzerland SA
11 Cours de Rive
1204 Geneva Switzerland
www.unionsecurities.ch
January 7, 2020 15
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January 7, 2020 16
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