The Investec Global Franchise Fund took top honours as the Best Global Equity Fund at the prestigious Morningstar Awards ceremony, hosted in Cape Town last night. While the award recognises the one-year performance of the fund, the winning fund also needed to have delivered strong three- and five-year returns after adjusting for risk.
In a particularly volatile year for international markets over the last twelve months (during which time the MSCI delivered a negative return of -6.8%, the Investec Global Franchise Fund proved its mettle by outperforming the market by more than 12%¹ over the year net of fees. Managed by Clyde Rossouw, it is first quartile amongst its global peers since inception in 2007.
The award means that the fund receives a five-star rating – the highest possible rating – from Morningstar for the year ahead.
The Investec Global Franchise Fund consists of a concentrated portfolio of 25 to 40 shares, predominantly listed in developed markets. Rossouw and his team favour high-quality, global franchise businesses, which typically have high customer loyalty, strong brands, no debt and are more resilient in times of economic uncertainty. Some of the top holdings include well-known blue chip companies like Visa and Johnson & Johnson.
The fund has historically offered dependable returns through market cycles with lower volatility than global equity markets. With its low correlation to South African equities, it also offers diversification benefits for South African investors.
Get the latest issue of FAnews