Solactive Global Family Owned Companies Index

Families: a success factor and return generator

 

UBS Open End PERLES on the Solactive Global Family Owned Companies Index

I. Model for success

Many internationally successful companies are run by dedicated families that want to pass on a prosperous business to future generations. A recent UBS Global Research study shows that familycontrolled companies have better long-term performance and profitability (source: "Q-Series - Why do Family-Controlled Public Companies Outperform? The Value of Disciplined Governance", April 13, 2015). The experts also discovered that share prices for family-owned companies were less volatile than their peers in global large cap indexes.

II. Unearthing the secret to their success

UBS Global Research believes that more efficient governance and disciplined cost management are the main reasons why family-controlled companies outperform their peers. They are managed for the long-term, and not optimized to meet certain quarterly targets. Rigorous succession planning also plays a big role. The world’s 500 largest family-owned companies are being run by the fourth generation on average. That builds trust for the future.

III. Quiet champions in one package

The University of St. Gallen is also deeply interested in this subject. It even maintains a research and education center on family businesses. Together with the consulting firm Ernst & Young, the St. Gallen researchers have launched the Global Family Business Index comprising the world’s 500 largest family-owned companies by sales. Listed and unlisted companies are treated differently, however. Listed companies only count as familyowned if one family holds at least 32 percent of their voting rights. In Switzerland, that criterion holds true for example for pharmaceutical giant Roche, logistics specialist Kühne + Nagel, Sika AG and the Schindler Holding industrial group. There are large family-owned multinationals in other countries as well. They include Beiersdorf, Continental and Henkel in Germany, Inditex in Spain, and Ford Motor, Marriott International and Wal-Mart in the US.

 

 

Historical index performance

 

Important note: The price data of the underlying asset that are displayed here merely serve as an indication and may not necessarily correspond to the prices that are relevant for the repayment or for any thresholds such as a stop-loss event or a knockout event. Only the sources and reference prices specified in the legally binding product documentation are relevant.

 

Current index composition

 

As of 19.02.2020

Name Weightings
GEORGE WESTON LTD 3.09%
ROCHE HOLDING AG 2.73%
SHAW COMMUNICATIONS INC CLASS B 2.69%
BERKSHIRE HATHAWAY INC-CL B 2.61%
WALMART INC 2.60%
INVESTOR AB CLASS B 2.56%
HONG KONG & CHINA GAS LTD ORD 2.37%
THOMSON REUTERS CORP 2.32%
CANADIAN TIRE CORP-CLASS A 2.28%
FERROVIAL SA 2.27%
HERSHEY CO/THE 2.25%
ROGERS COMMUNICATIONS INC-B 2.23%
FAIRFAX FINANCIAL HOLDINGS LIMITED 2.21%
HERMES INTERNATIONAL SCA 2.18%
POWER CORP OF CANADA 2.18%
BARRY CALLEBAUT AG 2.14%
SAPUTO INC 2.07%
MERCK KGAA 2.07%
CK HUTCHISON HOLDINGS LTD 2.03%
SODEXO SA 2.03%
BEIERSDORF AG 2.03%
COMCAST CORP-CLASS A 2.03%
HORMEL FOODS CORP 2.02%
L OREAL SA 2.02%
HYATT HOTELS CORP 1.97%
BROWN-FORMAN CORP-CLASS B 1.94%
SIKA AG 1.93%
EMPIRE CO LTD A 1.89%
KONE OYJ CLASS B 1.87%
NIKE INC 1.86%
UCB SA 1.84%
SCHINDLER HOLDING AG 1.82%
SWIRE PACIFIC LTD ORD A 1.81%
KUEHNE & NAGEL INTERNATIONAL AG 1.79%
NEWS CORP/NEW-CL A-W/I 1.76%
BAYERISCHE MOTOREN WERKE AG 1.75%
INDUSTRIA DE DISENO TEXTIL SA 1.75%
MARRIOTT INTERNATIONAL -CL A 1.73%
HENDERSON LAND DEVELOPMENT ORD 1.71%
JERONIMO MARTINS SGPS SA 1.66%
HENKEL AG & CO KGAA PREF 1.65%
PACCAR INC 1.64%
UNIVERSAL HEALTH SVS.B 1.63%
VOLKSWAGEN AG PREF 1.63%
PORSCHE AUTOMOBIL HOLDING SE 1.62%
WHARF HOLDINGS LTD ORD 1.59%
LVMH MOET HENNESSY LOUIS VUITTON SE 1.58%
RANDSTAD NV 1.56%
COMPAGNIE FINANCIERE RICHEMONT SA 1.55%
ICL ISRAEL CHEMICALS LTD 1.44%

 

 

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