How Michael Kors pays your pension
May 13, 2013
Where will you find Michael Kors and Hugo Boss?
If you guessed tony shopping malls, high street shops, or Teachers' investment portfolio, then you're correct in all three of your answers.
The luxury goods niche is one of the areas our investment teams have identified as having real growth potential. This might seem counter intuitive with reports of recessions and an unstable global market.
But, the demand for big-ticket brand names continues to climb, particularly in emerging markets. China, for example, is seeing double-digit increases in demand for luxury brands.
"We identify industries with the potential for real growth," says Neil Petroff, Executive Vice-President and Chief Investment Officer.
"Once we spot a growth industry, we identify the companies within it that are strong performers. We meet with management and develop a deep understanding of how they work. With this insight, we determine if there's a deal to be made, and what the opportunities are for even more growth. "
This approach, with its emphasis on direct investment and building relationships, is a win-win. The company that we're investing in gets access to our expertise and our global network of industry and financial contacts. And the increased shareholder value delivers greater returns for the plan.