fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Brown Advisory Global Leaders SI GBP

  • 1327.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 1328.00p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.60%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.74%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 October 2021

The fund targets high quality global companies with strong cashflows, sales, customer loyalty and Return on Invested Capital (ROIC). It aims to outperform the FTSE All-World Index over rolling five-year periods. Co-managers Mike Dillon and Bertie Thomson seek companies, such as technological giant Microsoft, which have a ‘win-win’ relationship with customers. This means that customers get unique products or services and in return keep spending their cash with them instead of rivals. This the managers believe leads to sales and market-beating profit growth as well as consistent free cashflow generation and persistent ROIC. The managers take a bottom-up, research-intensive investment approach, focusing on areas such as a company’s business model and competitive advantages.

Fund summary

Sector Global
Structure OFFSHORE FUND
Launched
Size £1,740m
Yield 0.00%
Charging basis Income
Dividends paid November

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.60%
Ongoing charges figure 0.74%

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Investment process

The managers look to invest in between 30 to 40 leading global companies with a market cap over $2billion. They want the companies to show strong economic returns, consistent cashflow, persistent ROIC over a period of 10 years plus and superior customer service and satisfaction via their products or services. Their investment universe encompasses 4,500 global companies which is whittled down to 300 using screens including ROIC characteristics, free cash flow generation, valuation metrics and sales growth. From this point companies are further vetted through research analysts, onsite company visits and Brown Advisory’s own network of venture capital contacts. They use four key measures to assess a company such as whether they have the strong branding or regular innovations needed to stop rivals from wooing away their customers. In addition, they look for companies delivering 20% ROIC or on a pathway to doing so and those with experienced management teams with skill in allocating capital. Three quarters of the companies it holds are founder or family led or have managers who have been in place for over 10 years. These factors are fed into a weekly review meeting where one analyst plays the role of ‘devil’s advocate’ putting forward a case against investing. A pre-mortem also takes place to understand where the thesis could go wrong.

The fund has delivered above-market results to investors since its launch in 2015. Its investment philosophy, focusing on high quality cash-generating businesses delivering positive and sustainable returns on capital, is highly aligned with our own. There is a slight concern in the fund's atypical higher volatility when compared to those with similar investment philosophies, but it has provided good protection during tougher economic times. A strong focus on long-term investing with clear objectives and Its diversification across sectors and geographies are other clear strengths. The experienced management team also benefits from working with a team of Baltimore and London based analysts. The 11-strong working group meets weekly to discuss the portfolio.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Key Investor Information - Income

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Key Investor Information - Accumulation

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