Sydney-based fund manager Insync Fund Managers, is buying quality Swiss multinationals as they become better value.
“We have added to our long held stake in Nestle and are looking favourably at Roche as its price declines. These Swiss multinationals have negligible exposure to their home currency apart from translation effects. In general our portfolio has a relatively low exposure to Swiss and European multinationals.
“A KIT Kat made by Nestle India still sells for the same price today in Mumbai as it did before the Swiss Franc appreciated, the fundamentals of Kit Kat sales in India or Asia have not changed. We acknowledge that its translated profits have fallen.
Mr Patel feels now maybe not be the time for investors to be looking at Swiss stocks like Swatch which has fallen significantly in price as its cost base has just been hiked by the change in the currency. It will be difficult for Swiss producers who export products to pass on the cost hikes easily. Swatch has some great brands in Omega to Rado and will get over this issue in time but its share price has yet to factor the new normal in CHF.
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