GAM Swiss Small & Mid Cap Equity

Investing like a business owner

Over more than two decades the team nurtured an integrated investment approach that relies on investing in companies with outstanding business characteristics. It judges each investment opportunity from three mutually beneficial perspectives: i) management quality and competitive position, ii) sustainability iii) as well as capital returns and growth. The team’s analytical rigour enables the portfolio manager to run a focussed portfolio with a low turnover.

Deep knowledge of sustainable investing

Over time team members have documented hundreds of company interviews and visits dedicated to sustainability and built a unique know-how about Swiss companies and sustainable investing. They are committed to foster and support sustainable corporate management, by engagement and diligent execution of voting rights.

Award-winning

The team's success in the area of sustainable investing was demonstrated in 2020, as well as in 2022, when another fund the team manages, applying the same process and strategy, was awarded "2020 Best Swiss Equities" and “2022 Best Swiss Equities” at the Swiss Sustainable Funds Awards. In its statement, the jury highlighted the portfolio's sustainability features as well as its excellent investment return. Furthermore, the same fund won the Lipper Awards in Switzerland in 2022 in the Swiss Small & Mid Cap category for its performance over three and five years. In Germany, the GAM Swiss Small & Mid Cap Equity CHF - B, a fund with broad European registration, was awarded the Refinitiv Lipper Germany Fund Award in 2021 and 2022 for its three and five year performance.

Corporate landscape

Switzerland and its stock market is characterised by a unique concentration of companies, which have evolved into strong international players.  As the home market for Swiss companies is small, they are forced to go abroad at an early stage of corporate development giving them valuable experience for successful geographical expansion. High labour costs make it expensive to operate in Switzerland. However, this is more than compensated for by an outstanding level of education and a flexible labour market. The Swiss school and university system ensure that not only an elite can achieve a high level of education but ensures a high skill level through the population.

Crises create opportunities

Several economic crises and the strong Swiss Franc have led a number of Swiss companies to rethink their business by reducing costs, concentrating on the core and promote innovation to boost growth. This creates opportunities to invest in companies that shape or run a high value-added business and strive to expand further through secular growth trends, market share gains and/or geographical reach.

Sustainability

Especially younger generations are paying increasing attention how companies from which they buy or for which they work fit into their ecological and social context. Thus, a firm's competitive position benefits strongly if its management applies principles of sustainable design as they open new ways to structure companies, design business processes and create products.