Investing in quality growth businesses.
Investment Manager
Companies with strong economics
Companies are selected through a rigorous evaluation process focusing on financial stability, strong superior growth, and strategic market positioning.
Defensive
Risk of capital loss is mitigated by the quality of the businesses selected and the margin of safety provided by the discount between their market price and their long-term earning power value. Portfolio is suited for a wide range of economic regimes with potential uncorrelated with the broad economic growth.
High conviction
High conviction portfolio, reflected in the higher weight allocated to securities offering the best value given their growth potential and having the most robust business models.
Lloyd Growth Equity UCITS ETF (GEP) aims to provide investors with exposure to companies that are of outstanding quality and superior growth profile.
Companies must have a long history of good financial performance and a strong balance sheet. They must maintain a high operating margin, consistently exhibit positive operating earnings, generate large free cash flow, and show robust returns on invested capital. The quality of the companies, the sustainability of their earnings power, and their development potential is also assessed through the analysis of 4 critical factors that Lloyd Capital defines as the 4 “M”s – Moat, Management, Market and Macro.
The Growth Equity ETF tracks the Solactive Lloyd Growth Equity Index CNTR (SGEPNTRC), which targets companies with strong financial fundamentals and superior growth.
Key Risks
Investors capital is fully at risk and may not get back the amount originally invested. Exchange rates can have a positive or negative effect on returns. The value of equities and equity-related securities can be affected by daily stock and currency market movements When you invest in ETFs, your capital is at risk. For a complete overview of all the risks, please refer to the ”Risk Factors” in the Prospectus.
Source: HANetf, data as of 31.07.2026. Please note that all performance figures are showing net data. Performance before inception is based on back-tested data. Back-testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled “Risk Factors” for further details of risks associated with an investment in this product. If fund is less than 12 months old, YTD field will be calculated since inception. When you invest in ETFs your capital is at risk.
No. of holdings: 24
The investment universe includes common stocks listed on regulated exchanges, concentrating on firms with robust financial fundamentals. Selected companies are based in global markets. The index components are selected through a rigorous evaluation process focusing on financial stability and strategic market positioning.
On selection days, components are assessed based on their risk profiles across several dimensions business stability, industry risks, accounting practices, competitive dynamics, and the criticality of their products or services. Each component must meet a defined threshold in a combined risk score to be considered. Further refinement occurs on reconstitution days using a composite score that factors in the margin of safety and strategic business metrics.
The index is ordinarily rebalanced once per month on the rebalance day according to the index guidelines. In addition to the ordinary rebalance the extraordinary rebalancing may be triggered by big movements in the market driven by an anomaly.
Growth equity refers to investing in companies expected to grow revenues, earnings or cash flows at a faster rate than the broader market over time. These companies typically operate in areas with structural demand, strong competitive positions or scalable business models. Growth equity is distinguished from value investing, which focuses on companies trading at lower valuations relative to current earnings or assets. Investors should consider both the quality of the business and the price being paid, as even strong companies can produce poor returns if valuations are too high at the point of purchase.
Quality growth focuses on companies that combine growth potential with financial strength, rather than simply targeting the highest revenue growth. This may include businesses with strong balance sheets, high margins, consistent operating profits, robust free cash flow and attractive returns on invested capital. The aim is to identify companies where growth appears more durable and supported by strong economics. This distinction matters because fast growth alone can be fragile if it depends on heavy borrowing, weak profitability or unsustainable market conditions.
Quality growth exposure typically includes companies with strong brands, scalable platforms, recurring revenues, pricing power, high returns on capital or leading positions in attractive markets. These businesses may operate across technology, healthcare, consumer, industrial or other sectors. The key consideration is not the sector itself, but the degree to which the company can grow profitably and defend its competitive position over time. Investors should review the methodology to understand how companies are assessed and the degree of concentration within the strategy.
Competitive advantage matters because it can help a company sustain growth and profitability over time. A strong competitive position, sometimes called a moat, may come from brand strength, network effects, intellectual property, scale, switching costs or operational efficiency. Without a durable advantage, high growth can attract competitors and pressure margins. Investors researching growth equity should look beyond recent sales growth and consider whether the business has the resilience to maintain earnings power through different market environments.
Management quality is particularly important in growth equity investing because growth companies depend heavily on capital allocation, innovation, execution and long-term strategic decisions. Strong management teams are better positioned to reinvest cash flows effectively, maintain financial discipline and adapt to changing market conditions. Poor management can weaken even a strong business model through overexpansion, excessive leverage or poorly timed acquisitions. Investors should therefore consider leadership track record, governance, incentive structures and the clarity with which management communicates its long-term strategy.
Key risks include valuation risk, interest-rate sensitivity, earnings disappointment, sector concentration, currency risk and broader equity-market volatility. Growth stocks often trade on expectations of future earnings, so share prices can fall sharply if those expectations are revised lower. Higher interest rates can also reduce the present value investors place on future cash flows. Even high-quality businesses can underperform if purchased at expensive valuations or if market sentiment moves away from growth-style equities.
Interest rates can affect growth companies because much of their perceived value may depend on future earnings and cash flows. When rates rise, investors often apply higher discount rates to those future cash flows, which can put pressure on valuations. Growth companies may also be affected if higher borrowing costs reduce investment, consumer demand or corporate spending. However, financially strong companies with low debt, high margins and strong cash generation may be better placed than businesses that rely heavily on external funding.
Valuation discipline matters because a high-quality company is not automatically a good investment at any price. If expectations are too optimistic, even a growing business can disappoint investors. A disciplined approach may compare a company’s market price with its long-term earnings power, cash generation and potential returns on capital. This can help investors avoid paying too much for growth, although it does not remove the risk of market losses or incorrect assumptions about future performance.
A concentrated growth equity approach amplifies the impact of individual company outcomes on overall portfolio performance. If the selected companies perform well, concentration can enhance returns; if one or more holdings disappoint, losses can be more pronounced. Concentration also increases exposure to specific sectors, regions, currencies or investment styles — risks that a more diversified approach would spread across a broader set of holdings. Investors should review the number of holdings, position sizes and diversification parameters to assess whether the level of concentration is consistent with their risk tolerance.
Growth equity exposure may be considered as part of an equity allocation focused on companies with long-term compounding potential. It can behave differently from value, income, small-cap or broad-market equity exposure. Investors should consider how much growth exposure they already have through existing holdings, particularly if their portfolio is already tilted toward technology or other high-valuation sectors. Costs, methodology, concentration, currency exposure and risk tolerance should all be reviewed before making any investment decision.
Disclaimer: These FAQs have been generated with the assistance of AI and may contain errors or omissions. They are provided for general information only and do not constitute investment advice, a recommendation, or an invitation to buy or sell any investment.
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About Partner
Lloyd Capital GmbH is an independent, Swiss based, FINMA licensed asset manager and SEC registered investment advisor that specializes in the management of assets of high-net-worth individuals and family offices. Lloyd Capital GmbH is a wholly owned subsidiary of Emerald Wealth Partners AG.
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