Ninety One Global Franchise I

  • 293.31p
    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?

  • 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).

  • 0.86%
    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.

  • 0.80%
    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 January 2021

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
Size £161m
Yield 0.80%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.86%

Allocation

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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 0.00%
  • 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

Absolute 0.00% ()
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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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.

Key Investor Information

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