Global Franchise Fund

Seeks consistency in an uncertain world
Seeks consistency in an uncertain world

A global portfolio investing in world-leading, quality franchise companies.

We seek companies with durable business models which can provide resilient growth. We believe this approach can provide long term outperformance, with greater certainty in times of economic uncertainty.

“There are not many companies that can provide the durable, resilient growth potential we seek. Finding them requires extensive research. And once we find those stocks, we tend to make long term investments.”

We have successfully managed money seeking to invest in quality companies for over ten years, and have generated an impressive track record
Clyde Rossouw

Reasons to invest

01

Seeks to invest in quality companies, many of whom are world-leaders in their fields. They typically have high customer loyalty, strong brands, low debt and are more resilient in times of economic uncertainty

02

A high conviction portfolio of 25 – 40 stocks1 which is highly differentiated versus the index2

03

Has a long-term track record of outperformance; with meaningful participation in up markets and smaller drawdowns in down markets3

Why focus on Quality franchises now?

 

 

The right attributes to withstand most economic conditions

We believe the Global Franchise Fund has the right attributes to withstand most economic conditions.

It has outperformed in falling markets, dampening drawdowns for investors. Equally, the Fund has historically kept up with rising equity markets resulting in attractive outperformance over the long term.

Figure 1: Average rolling 12 month performance

Quality Manual Performance graph

Calendar (and Index) year returns: 2019: 27.0% (26.6%); 2018: -4.5% (-9.4%); 2017: 23.8% (24.0%); 2016: 0.1% (7.9%); 2015: 8.2% (-2.4%).

Source: Ninety One, 30 June 2020. See important information for further information.

 

 

 

A differentiated approach

The Fund seeks to invest in quality franchise companies which have:

  • Hard-to-replicate enduring competitive advantages
  • Dominant market positions in stable growing industries
  • Low sensitivity to the economic and market cycle
  • Healthy balance sheets and low capital intensity
  • Sustainable cash generation and effective capital allocation

The strong often get stronger

General risks
The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.

Specific Risks
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 31.03.20 unless otherwise stated. Performance is based on the OEIC Global Select Equity Fund from 10 April 2007 which then merged into the Luxembourg-domiciled GSF Global Franchise Fund on 04 July 2009.

1Internal investment parameters are subject to change without prior notification. 2Versus MSCI AC World Index. 3Comparison index: At Inception = MSCI World Net Returns; Current Since Oct 1 2011 = MSCI AC World Net Returns. Source: Morningstar. Since inception on April 10 2007.

Figure 1: Average rolling 12 month performance graph: Comparison index: At Inception = MSCI World Net Return; Current Since 1 Oct 2011 = MSCI AC World Net Return. Rolling 12 month periods since inception: 30.04.07. Please note month-end performance data is used. Performance is net of fees (A Acc, NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD.