Clariden Bank has launched the Clariden Luxury Goods Equity Fund aimed at the long-term private equi...
Clariden Bank has launched the Clariden Luxury Goods Equity Fund aimed at the long-term private equity investor but can also can be for the institutions. The minimum investment will be e1,000.
Dr. Scilla Huang Sun, fund manager of the Clariden Luxury Goods Equity Fund which is based in Guernsey, said: "The investment strategy has been driven by bottom-up stock selection and Clariden focuses on four main criteria when choosing companies.
"They are the quality of management, the strength of the product position, the financial strength of the company and the valuation."
Clariden's investment goals are to achieve long-term capital appreciation in excess of the MSCI Consumer Discretionary Index through investment in a diversified portfolio of equities in the global luxury goods sector.
Investors are expected to receive returns of 15-20% per annum.
The main segments of the luxury market are: apparel, leather goods, perfumes and cosmetics, jewellery and watches, wines and spirits, tableware, cars and motorbikes, boats, and hotels and leisure.
Beat Wittmann, chief investment officer of Clariden Bank, said: "Companies in the luxury goods sector are all about good management and usually have good long term family background."
They are also products which have strong branding and are related to an exclusive and wealthy lifestyle which create prices at the high end of the market.
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