Ninety One American Franchise I

Management was brought in-house in August 2012. This is a focused large cap value fund.

  • 469.84p
    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.

  • -
    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?

  • 4.50% 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!

  • 0.75%
    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).

  • 0.84%
    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 21 September 2021, fund data last updated 22 May 2008

For 10 years the management of this fund was outsourced to US-based Thornburg, but management was brought in-house in August 2012 following consistent poor performance. The portfolio focuses on large and medium sized companies and the fund can be regarded as a core holding, offering a blend of growth (companies with strong relative earnings) and value (companies trading at a discount to their intrinsic worth) stocks. The aim is achieve long term capital growth and the fund's benchmark is the S&P 500 index.

Fund summary

Sector North America
Structure OEIC
Launched June, 2007
Size £545m
Yield 0.00%
Charging basis
Dividends paid Acc units only

Charges

Standard initial charge 4.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.84%

Allocation

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Investment process

Now it is managed by Investec it is highly likely to have a different investment process.Under Thornburg the process was: The objective is to invest in companies displaying sound business fundamentals that are priced attractively relative to their intrinsic value (the discounted sum of their future cash flows). These companies will fall into one of three categories: Basic Value (restructuring opportunities and contrarian cyclical companies); Consistent Earners (higher quality companies with consistent revenue streams and high returns on equity); and Emerging Franchises (younger companies with more visible growth characteristics). Neutral exposure is roughly 40% Basic Value, 40% Consistent Earners and the remainder in Emerging Franchises (maximum 25%). Individual fund positions in the latter type of company will be a maximum of 2%, whilst the former may account for larger weightings. Positions are usually held with a 12-18 month view.

Manager research

Average monthly relative returns

  • 16/17 0.49%
  • 17/18 0.22%
  • 18/19 0.73%
  • 19/20 -0.02%
  • 20/21 0.27%

Bestinvest MRI

  • 3 years 0.33%
  • 5 years 0.34%
  • Career 0.30%
  • 3 years 90.80%
  • 5 years 96.30%
  • Career 95.10%

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

Alessandro Dicorrado

Track record

Alessandro Dicorrado has 5.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.3%. During the worst period of relative performance (from May 2020 - January 2021) there was a decline of 7% relative to the index. The worst absolute loss has been 11%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 95%.

Periods of worst performance

Absolute -11.00% (January 2020 - March 2020)
Relative -7.00% (May 2020 - January 2021)

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.

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Top 10 holdings

Data accurate as at 31 August 2021

7.8% Microsoft Corp
6.9% Alphabet Inc
5.2% Autodesk Inc
4.3% Facebook Inc
4.3% Visa Inc
4.2% Adobe Inc
3.7% Intuit Inc
3.6% Automatic Data Processing Inc
3.4% S&P Global Inc
3.3% Becton Dickinson & Co
Source: Trustnet

Sector breakdown

Information Technology 33.00%
Health Care 16.00%
Financials 14.00%
Communications 11.00%
Consumer Staples 11.00%
Consumer Discretionary 10.00%
Money Market 5.00%

Portfolio

The number of holdings will vary between 40 and 50. The portfolio will remain diversified by sector and economic sensitivity. Minimum company market capitalisation is approximately $1bn.

Key Investor Information

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