Ninety One Global Quality Equity Income I 2 GBP

  • 154.63p
    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.

  • 2.00%
    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 18 June 2021

The fund aims to provide long-term income and capital growth primarily through investment in a concentrated number of "quality" stocks trading on attractive valuations. Quality is defined as the ability to sustain high margins and rates of return on capital, in cash. Portfolio companies are typically well-managed, able to demonstrate dominant market positioning and have strong balance sheets. The manager are benchmark agnostic, which means the performance may significantly deviate from the MSCI World index.

Fund summary

Sector Global
Structure OEIC
Launched May, 2016
Size £24m
Yield 2.00%
Charging basis Capital
Dividends paid

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 strategy aims to invest predominantly in attractively valued companies which exhibit key quality characteristics that provide the necessary support for long-term sustainable dividend growth, including business model strength (sustainable returns on capital and low capital intensity); financial model strength (high conversion ratio of profits into free cashflow, cashflow dividend cover and low financial leverage); and effective capital allocation – aligned with shareholder interests, with an appropriate dividend policy. Free cash flow yield is a preferred valuation metric.This high a conviction portfolio and will typically contain around 30-50 companies. Yield is constructed at the portfolio level, with no yield threshold at the individual stock level. The find does not have an explicit yield target in excess of the benchmark index, although aims to yield higher than the MSCI World index.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 -0.97%
  • 18/19 0.35%
  • 19/20 0.47%
  • 20/21 -0.89%

Bestinvest MRI

  • 3 years -0.02%
  • 5 years 0.00%
  • Career -0.17%
  • 3 years 56.40%
  • 5 years 0.00%
  • Career 32.60%

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

Clyde Rossouw / Abrie Pretorius / Blake Hutchins

Rossouw is co-Head of Quality at Investec Asset Management. He is portfolio manager with a focus on multi-asset absolute return and low volatility real return equity investing. His portfolio manager duties include our flagship Opportunity strategy that he has run since 2003 and our equity oriented Global Franchise and Global Quality Equity Income strategies. Pretorius is a co-manager on Investec Asset Management’s Global Quality Equity Income Fund and an analyst in the Quality team. He joined the investment team in 2009 from the Performance and Risk team where he spent three years as a risk analyst. Hutchins is a portfolio manager at Investec Asset Management. He is manager of the UK Equity Income Fund, co-manager of the Global Quality Equity Income Fund, backup portfolio manager on the UK Alpha Fund and an analyst within the Quality team. Hutchins is based in the firm’s London office having joined Invested in 2014 from Threadneedle.

Track record

Clyde Rossouw / Abrie Pretorius / Blake Hutchins has 5.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.17%. During the worst period of relative performance (from January 2016 - February 2021) there was a decline of 20% relative to the index. The worst absolute loss has been 11%.

Periods of worst performance

Absolute -11.00% (May 2017 - March 2018)
Relative -20.00% (January 2016 - February 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.

Allocation

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Portfolio

- 30-50 stocks - c.25% will typically be allocated to the UK region

Constraints

- Max sector weight 10% - Holding period - 5 years - Yield managed at portfolio level

Key Investor Information

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