Pictet Asset Management’s Premium Brands Investment Strategy has been allowing investors to own stakes in companies across diverse high-consumer segments for two decades. These companies are renowned for their resilience, operational excellence, digital integration, experience and differentiation. By investing in these iconic and innovative brands, investors can own a Ferrari in the garage – not the car itself, but the prestigious company behind it in their portfolio.
Since its inception on 31st May 2005, the Premium Brands strategy aimed to capture enduring trends in the consumer sector and deliver value for investors. In this time, the strategy has delivered a remarkable 412% return, compared to the MSCI AC World Index’s 379% over the same period, up to 30th April 2025 in EUR terms. [1]
When it was established in 2005, luxury was emerging as a hugely promising sector. This was driven by sustained growth factors and the burgeoning Chinese consumer base as it opened up to Western companies. In 2005, Chinese customers accounted for less than 5% of the luxury market; today, they represent close to 25%. [2]
The fund invests in more than just the traditional luxury sector, but also companies in premium hotels, sports, beauty as well as food and drink. These companies benefit from superior pricing power due to their differentiated products and operations in sectors with high barriers to entry. They generate high profitability and superior cash flows while maintaining desirability with customers.
Caroline Reyl, Senior Investment Manager, stated: “My passion for premium brands remains as strong as ever. In a macro environment involving tariffs, you not only need resilient, stable brands, but brands that have strong balance sheets and margins, brands that are innovating and brands that have strong pricing power thanks to differentiated products. Over time, we expect the Chinese consumer to return, but consumers are more global now than they ever have been. Premium brand companies’ success lies in merging quality with aspiration, making them a compelling long-term investment that can emerge through multiple crises. We expect luxury and the demand for experiences to grow globally and also in new emerging markets.”
[1] Pictet-Premium Brands I Share EUR versus MSCI AC World Index EUR
[2] Bain & Company, 2024.
