fund
Ninety One Global Franchise I
Worldwide equity fund favouring "quality" companies, often with strong brands.
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307.76p
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.
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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?
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0.00%
Initial chargeSome 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!
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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).
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0.86%
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.
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0.70%
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…
Launched on 1 October 2012, this fund targets long term capital growth from a concentrated portfolio of global equities. The manager favours "high quality" stocks able to produce sustainably high returns, often through barriers to entry such as strong brands or patents. Typically these are larger companies based in developed countries, often in the consumer staples sector.
Fund summary
| Sector | Global |
| Structure | OEIC |
| Launched | October, 2012 |
| Size | £148m |
| Yield | 0.70% |
| Charging basis | Income |
| Dividends paid | Acc units only |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.86% |
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Investment process
The fund is run by a six-strong team based in Cape Town and London who look to create low volatility returns from equity markets – typically this draws them to companies with global brands or franchises. The investment process is in three stages: - Idea generation. Starting from a universe of around 6,000 companies worldwide, the managers undertake primarily quantitative screening, looking for high returns on capital, high and sustainable margins, low leverage, low capital intensity and sustainable, above average growth. - Fundamental analysis. The resulting 250 companies are subjected to qualitative research, looking at industry background (favouring stable industries with high barriers to entry), durability of competitive advantage, financial strength (strong free cash flow is important), valuation (focusing primarily on free cash flow yield), management (how they allocate capital and how they are incentivised). - Portfolio construction. Stock weightings are based on growth, yield and quality.
This fund aims to produce low volatility returns by investing purely in equities. To do this, the manager targets companies with the ability to show consistent returns, often those with strong brands that are able to resist competition. The strategy has been in place on an offshore equivalent fund since 2007 and has produced strong returns, doing particularly well in protecting investors from falling markets. However, the fund has a high weighting to companies in the consumer staples sector – these have performed strongly in recent years, but may now be expensive.
Manager research
Average monthly relative returns
- 16/17 -0.43%
- 17/18 -0.32%
- 18/19 0.62%
- 19/20 0.88%
- 20/21 -1.05%
Bestinvest MRI
- 3 years 0.15%
- 5 years -0.06%
- Career 0.15%
- 3 years 73.20%
- 5 years 52.00%
- Career 91.30%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Clyde Rossouw
Rossouw is a portfolio manager at Investec Asset Management with a focus on Multi-Asset Absolute Return and low volatility real return equity investing. His portfolio manager duties include the flagship Multi-Asset Investec Opportunity Strategy that he has run since February 2003 and the two equity oriented Investec Global Opportunity Equity and Global Franchise Strategies. He joined Investec in November 1999, initially as an asset allocation and sector allocation strategist. Prior to Investec, he was awarded a study bursary by Sanlam and worked in their group for eight years, including five years in asset management. His experience in investments there included fixed income analysis and portfolio management. Rossouw graduated from the University of Cape Town with a Bachelor of Science (Statistics and Actuarial Science) degree. He was awarded the Certificates in Actuarial Techniques in 1995, and Finance and Investments in 1997 by the Institute of Actuaries in London. He is a CFA Charterholder.
Track record
Clyde Rossouw has 14 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.15%. During the worst period of relative performance (from July 2012 - January 2014) there was a decline of 13% relative to the index. The worst absolute loss has been 18%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 91%.
Periods of worst performance
| Absolute | -18.00% (December 2007 - February 2009) |
| Relative | -13.00% (July 2012 - January 2014) |
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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Top 10 holdings
Data accurate as at 31 July 2020
| 8.1% | Visa Inc |
| 6.5% | Microsoft Corp |
| 6% | Moodys Corp |
| 5.1% | Verisign |
| 4.4% | Booking Hldgs Inc |
| 4.3% | Roche Hldg Ag |
| 4.2% | Nestle Sa |
| 4.1% | Asml Holding Nv |
| 3.6% | Beiersdorf Ag |
| 3.5% | Johnson & Johnson |
| Source: Trustnet |
Sector breakdown
| Information Technology | 34.00% |
| Consumer Staples | 20.00% |
| Financials | 16.00% |
| Health Care | 13.00% |
| Money Market | 7.00% |
| Communications | 6.00% |
| Consumer Discretionary | 4.00% |
Portfolio
25-40 stocks.
Constraints
Minimum market cap $1bn. Max 20% in any sub-sector.
Key Investor Information