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!

RWC Global Horizon R GBP

  • 20426.69p
    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?

  • 5.00% 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!

  • 0.80%
    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).

  • 1.15%
    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 17 February 2020

Launched in November 2013 this fund looks to outperform the MSCI ACWI on a rolling 5 year basis by investing in a portfolio of global equities. The manager will choose 60-90 stocks with the top 40 names typically being around 85% of the portfolio. The fund will be comprised of both large and mid-cap stocks with the resultant portfolio often having a moderate mid-cap bias. The manager looks for companies with improving return on invested capital. Often this will be where industries are seeing capital removed and ROIC improves for the surviving companies. However, in some instances, ROIC can be improving for other reasons, such as technological change. Consequently, the fund screens as style agnostic.

Fund summary

Sector Global
Structure OFFSHORE FUND
Launched October, 2014
Size £252m
Yield 0.00%
Charging basis
Dividends paid Acc units.

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.80%
Ongoing charges figure 1.15%

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Investment process

The portfolio is constructed entirely from the bottom up with the manager, Louise Keeling, paying no consideration to the macroeconomic environment. The investment process looks for companies with improving return on invested capital. The manager primarily does this by looking for industries where capital is being withdrawn and investing in the likely survivors as they will benefit from an improving competitive environment. However, poor capital allocation decisions can squander the benefits of improving supply side dynamics so Keeling also looks for strong insider alignment via significant ownership or well-designed compensation schemes. The thesis being that strong alignment promotes longer term thinking and consequently better capital allocation decisions. Lastly the manager looks to value the companies and will only invest when stocks are trading at a >50% discount to her estimate of intrinsic value. The valuation methodology focuses on EV and FCF rather than using a DCF.

Manager Louise Keeling has accumulated a good track record in the IA Global Sector since the fund launched in November 2013. This comes despite the fund having a largely contrarian investment process and not being able to fully participate in the growth momentum theme that has led markets in recent years. The key attraction of the fund is its highly differentiated investment philosophy with the manager focusing on the supply side of the capital cycle. The thesis here being that as supply drains out of an industry market participants over extrapolate the pain the industry might be suffering and underestimate the benefit of reduced competition to the survivors.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.11%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.07%
  • 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.

Louise Keeling

Keeling joined Insight Investment in May 1998 as an overseas equity analyst focusing on the global pharmaceutical sector. She was promoted to US fund manager in February 2000 and currently manages major US equity funds with assets of over £500 million. She started her career in financial services after graduation, spending two years as an analyst with the Bank of England. Keeling has a degree in Economics and French from the University of East Anglia and is an Associate of the Society of Investment Professionals (ASIP).

Track record

The track record of Louise Keeling in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -10.00% (March 2006 - May 2006)
Relative -4.00% (June 2005 - May 2006)

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

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