What I'd Like for Christmas 2007

Diamond Cartier earrings. A Jaegre-LeCoultre wristwatch. A handbag from Coach. A bottle of 25-year old Talisker single-malt scotch.

I don't know what you unwrapped under the tree on Christmas morning, but if it ran to the wonderfully luxurious it probably made three people happy: You. The giver. And Caroline Reyl in Geneva. She runs one of the most delightful mutual funds on the planet: the Premium Brands fund offered by the small, innovative Swiss fund management company Pictet.

When it comes to screening stocks for her 64 million euro fund, Reyl has very refined tastes. Only the most exclusive brands need apply. That means companies such as Richemont (which owns Cartier, penmaker Montblanc and watchmaker Jaegre-LeCoultre, among other assets), Valentino, Polo Ralph Lauren, Coach and drinks giant Diageo, the leading distiller of single-malt scotch.

"We look across consumer segments for quality and aspirational brands," she says. "Our concept is very original. We don't just focus on luxury goods but also on the high-end range for all products, such as food and sporting goods."

Isn't this the greatest idea for a mutual fund? High margins. Strong brands. Growth. And, of course, the ability to walk down Rodeo Drive reflecting that every well-heeled shopper wielding a platinum card is paying you for the privilege.

The Pictet fund is not currently sold in the U.S. And it is depressingly predictable that our dismal mutual fund companies offer no equivalents. Of course, they're too busy churning out dull little "mid-cap blend" offerings guaranteed to underperform the market.

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