Global Franchise Strategy

Our proprietary investment approach focuses on best-of-breed quality companies that sustain high returns and compound shareholder wealth over the long term.
Our proprietary investment approach focuses on best-of-breed quality companies that sustain high returns and compound shareholder wealth over the long term.

Strategy overview

The Strategy aims to achieve long-term outperformance primarily through investment in a concentrated number of high quality, attractively valued, well-run companies that have strong balance sheets and dominant market positioning. The Strategy seeks and continues to hold shares in businesses that we believe are more immune to global economic cycles.

Key Features
  • Differentiated franchise philosophy, seeking best combination of Quality, Growth and Yield*
  • High conviction concentrated portfolio
  • Managed by a highly experienced and well-resourced team
  • Track record of long-term outperformance
    • Meaningful participation in up markets
    • Smaller drawdowns in down markets
    • Lower than average absolute volatility
We seek a purer expression of quality companies. We focus on fundamental research to identify companies that can offer durable, defensive and differentiated alpha.
Clyde Rossouw

Investment Approach

01

We believe few companies can consistently and reliably compound shareholder wealth at superior rates of return over the long term.

02

We believe that a concentrated portfolio of these exceptionally high-quality companies, when selected with an absolute value bias, will earn attractive returns with less than average absolute volatility.

03

We invest in businesses that display what we consider to be the best combination of growth, quality, yield and valuation.

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General risks:

Past performance is not a reliable indicator of future results and performance targets may not be achieved; losses may be made.

Specific Risks:

Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.

Important information

All information is as at 31 March 2020 unless otherwise stated.

* For Quality the main areas we look at are industry attractiveness, competitive position, business tail risk, returns on capital, cashflow dynamics and management. For Growth: sales, earnings and free cashflow growth.