Luxury in flux but brands still booming
This article first appeared in Professional Adviser on 13 February 2024 It’s not often you see ...
It’s that time of the year when us dads practise our ‘surprise’ face, in anticipation of unwrapping yet another pair of socks in front of our excited youngsters. And there is every chance that our own dads are feigning a similar reaction, as we drag them out for bike rides or country walks when they’d rather be sat watching the World Cup.
If this sounds all too familiar, panic not. Why run the risk of buying your father a gift that he’ll be stuffing in the loft (or at least at the back of the cupboard), when you can buy him an investment in the company of said gift instead? At least it will save you hunting around for the receipt!
Here, we look at three Elite Rated funds which could hold the key to your dad’s happiness on Father’s Day.
For those with deep pockets, how about buying your dad a bottle of Hennessy Cognac, leather brogues from Berluti, a tailored shirt from Thomas Pink or a Swiss Tag Heuer watch? Or why not get him exposure to all four through GAM Star Continental European Equity, which holds French luxury goods conglomerate LMVH in its list of top 10 holdings?
The company, which is headquartered in Paris, houses 70 brands across six different sectors including leather goods, wines & spirits, perfumes & cosmetics and watches & jewellery. Some of its most well-known brand names include Moët, Louis Vuitton and Christian Dior.
LMVH is GAM Star Continental European Equity’s second-largest holding, accounting for 4%* of the overall fund. Alternatively, if your dad isn’t keen on champagne or you think cognac is too much of a cliche, the fund also has a holding in Pernod Ricard, which owns a whole host of international alcohol brands including Jameson whisky, Havana Club rum and Absolut vodka.
Is your dad partial to a flutter on the horses, or a fan of the beautiful game? Thomas Moore, who heads up the Standard Life Investments UK Equity Income Unconstrained fund, has multinational sports betting and gaming group GVC Holdings as one of his top 10 largest individual weightings – accounting for 2.7% *of the overall portfolio.
GVC, which owns brands such as Ladbrokes Coral and Sportingbet, is a constituent of the FTSE 250 index. Its headquarters are based in the Isle of Man, although the company was originally founded in Luxembourg back in 2004. It was reorganised as GVC Holdings in 2010 and, since then, it has acquired several companies including Bwin.Party Digital Entertainment and Ladbrokes Coral.
If you’d prefer to spend more wholesome quality time with your dad, Standard Life Investments UK Equity Income Unconstrained also has a 2.8%* allocation to Cineworld.
For fathers with a sweet tooth, there is always chocolate. Swiss food and drink company Nestlé is one of the largest holdings in John Bennett’s Janus Henderson European Focus fund at 3.1%*, and is home to brands such as After Eight, Quality Street and Dairy Box, among others. It also has numerous brands specialising in coffee, dairy products, breakfast cereals, bottled water and even pet food.
With 335,000 employees and products on the shelves across 189 countries**, it is one of the biggest players in the consumer goods sector globally. For those whose dads are more in need of something cold and fizzy, John Bennett also holds French brewing company Carlsberg in his list of top 10 holdings.
*Source: Fund fact sheets, 30 April 2018