Investment in digital payments companies like PayPal has created strong opportunities for Pie’s Global Growth 2 Fund.
Many products or services can be popular, but if the companies that provide them don’t have robust and sustainable business models, then this is likely to result in less returns for investors over time.
This is where Pie’s strong and skilled active management strategy comes in. Our on-the-ground approach, including our UK-based equities researchers, uses analysis and experience to identify opportunities that might not be so readily apparent to retail investors. We can identify themes and trends early, which can lead to profitable investment decisions.
PayPal is popular. But it ticks a number of our investment criteria too. The company sits at the heart of two huge multi-year trends – the move from cash to digital payments, and the growth in e-commerce. PayPal processes an estimated 20% to 30% of global e-commerce transactions, making it a sector leader.
PayPal’s scalable business model, effectively “clipping the ticket” on every transaction it processes, allowed it to make a high operating profit margin in 2020 of 25%. The company also generates lots of cash and has no debt, things we look for at Pie.
PayPal is constantly evolving and enriching its digital payments ecosystem, and we expect this will bring strong growth for many years.
When this is combined with its leading market position and its increased services, we believe PayPal has all the ingredients to be a great investment.
View Global Growth 2 Fund
Pie’s Global Growth 2 Fund features:
+ Invest in global market leaders
Large global companies like PayPal have stable, leading competitive market positions and provide steady long-term growth opportunities.
+ Diversify through Pie's global large companies fund
Diversify your portfolio with exposure to companies valued at US$1 billion or more, hand-picked by the Pie investment team.
+ Long-term capital growth
Pie’s Global Growth 2 Fund aims to deliver long-term capital growth. Diversify your portfolio through exposure to market leaders, quality companies and sectors.
+ A well-connected research team in London
Our specialist equities researchers are well connected in the UK, Europe and further afield. Their ear to the ground and strength in detailed analysis helps identify strong investment opportunities.
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Information is current as at August 2021. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary.