Beat the Footsie – by investing in His Majesty’s brands
A selection of the King’s favorite companies have outperformed the FTSE 100 over the past three years
Ticking the right boxes: The Princess of Wales in a Burberry coat
A selection of the King’s favorite companies have outperformed the FTSE 100 over the past three years.
An index of ten leading companies with brands bearing Royal Warrants — from gun and watch makers to raincoat and shoe sellers — has nearly doubled in value since April 2020, according to analysis by investment platform eToro.
The FTSE 100 is up just 36 percent over the same period, lagging the ‘King Charles’ index.
Royal Warrants, a coveted seal of approval that can boost sales, are issued to companies that supply the monarch’s household, ranging from multinationals to individual artisans.
Among the best performing warrant holders is Burberry, the luxury goods giant listed on the London Stock Exchange, which has doubled in value in three years. Watches of Switzerland, the owner of British jeweler Mappin & Webb, which took its first warrant in the 19th century, has seen its market value rise more than 250 per cent to £2 billion over the past three years.
The Twinings tea company received its first Royal Warrant from Queen Victoria in 1837. Shares of its parent company, Associated British Foods, are up 10 percent since the spring of 2020, when stock markets crashed due to Covid lockdowns. Royal Doulton owner Fiskars achieved a growth of 54 percent.
Mike Ashley’s Frasers Group, which owns Royal Warrant tailor Gieves & Hawkes and brands like Sports Direct, is up 250 percent. It’s worth £3.6 billion.
The owner of shotgun and rifle maker Purdey – the luxury goods giant Richemont – and the parent company of John Lobb shoes – Hermes – have both nearly tripled in value.
Ben Laidler, global markets strategist at eToro, said, “This index’s strong price performance shows heritage and luxury sales regardless of economic ups and downs.”
He added that the brands included in the index “all have unique histories” that make them a popular choice, even in difficult times.
However, it has not been smooth sailing for all companies. Carmaker Aston Martin – a favorite of James Bond – is down 95 percent after huge profit drops.
Brewer Shepherd Neame is another laggard with shares down 20 percent, while Newell Brands, owner of Parker Pens, fell 5 percent.
Private companies with warrants include Fortnum & Mason, upscale chocolatier Prestat and Floris perfumery.