The quest for global brand leaders

Harvest's Paul MacDonald believes stocks with brand power can ride out a potential correction.

Michael Ryval 23 August, 2018 | 5:00PM

Companies that have brands with global presence and the ability to generate consistent dividend income can be rewarding in themselves, argues Paul MacDonald, who oversees the $122.7-million Harvest Brand Leaders Plus Income ETF (HBF). Moreover, MacDonald maintains that a select group of stocks that have brand power can ride out a potential correction in an aging bull market.

"The idea behind the fund originated in our broader philosophy. We just want to own good quality businesses over the longer term," says Paul MacDonald, chief investment officer at Oakville, ON-based Harvest Portfolios Group, which offers a suite of 11 ETFs, four structured products and two mutual funds and has about $654.5 million in assets under management. "The starting point of our universe is the top 100 leading global brands. We say, 'let's start with some good quality businesses,' and then we narrow that down to a much smaller number by using financial data and metrics to select the best."

Companies that have brand leadership benefit from consumer loyalty, proven long-term histories and pricing power. "Typically, they are global in nature and transcend cultural barriers. From our perspective, those are the type of firms we want to look at, although we don't want to own all of them. But that's our starting point," says MacDonald, a 16-year industry veteran and native of Woodstock, NB, who traveled widely before graduating with a bachelor of international finance in 2001 from Australia's Griffith University. "We use the financial data to determine the qualitative leadership status."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Johnson & Johnson142.37 USD-0.08
Visa Inc Class A192.55 USD0.18

About Author

Michael Ryval

Michael Ryval  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies