Exposure to companies with a unique competitive advantage

 

What the IFP Global Franchise Fund offers

Seeking quality global equities exposure

With the potential for above index returns at lower risk

Defensive investing

Potential for protection in down markets

Leading companies

Concentrated exposure to some of the world's leading international companies

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk.

The risks of investing in the fund include:

  • Investment risk: The fund has exposure to share markets. The risk of an investment in the fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the fund's unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request being made and the time the redemption unit price is calculated.
  • Market risk: Share markets can be volatile, and have the potential to fall by large amounts over short periods of time. The investments of the fund are likely to have a broad correlation with share markets in general, and hence poor performance or losses in domestic and/or global share markets are likely to impact negatively on the overall performance of the fund.
  • Concentration risk: The fund may have exposure to a small number of key investments. This may result in the returns of the fund being dependent on the returns of individual companies and industry sectors. This concentration of exposures may increase the volatility of the fund’s unit price, and increase the risk of poor performance. It may also result in the fund’s returns differing significantly from its benchmark.

For a full description of the risks of investing in the fund, you should read the Product Disclosure Statement before deciding to invest.

Detailed fund information

Independent Franchise Partners LLP (IFP) is an employee-owned investment management firm established in June 2009.

IFP's founding partners previously managed the investment strategy at Morgan Stanley Investment Management. IFP is based in London and is regulated by the UK's Financial Conduct Authority.

IFP specialises in a single investment strategy which aims to identify companies capable of compounding shareholder wealth at superior rates of return over the long-term. The strategy uses strict value and quality criteria to evaluate potential investments.

The IFP Global Franchise Fund aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI World ex Australia Index, in $A unhedged, with net dividends reinvested (Benchmark).

The fund provides exposure to a concentrated portfolio of global equities by investing in securities issued by companies IFP believes are high quality. IFP selects companies they believe have a primary competitive advantage supported by a dominant intangible asset, such as a brand, patent or licence.

IFP believes that investing in shares of high quality companies, trading at attractive valuations will earn superior returns and with less volatility compared to the Benchmark.

The fund's investment approach is founded on the belief that a concentrated portfolio of exceptionally high quality companies will earn attractive long-term returns with less than average absolute volatility. The fund looks to invest in companies whose primary competitive advantage is supported by a dominant intangible asset, such as a brand, patent or licence.

IFP believes these intangible assets will help to protect the company from competition maintaining the pricing power in their products. This, in turn, should assist them to continue to generate stable profits across a variety of market conditions. The businesses selected also tend to have robust long-term track records and strong management teams.

The fund is constructed one stock at a time and does not use the Benchmark as a portfolio construction tool.

IFP evaluates risk in absolute terms, not relative to the Benchmark, and deliberately avoids the Benchmark in its portfolio construction process. Since its goal is to earn attractive returns over the long term with less than average volatility, IFP focuses on the risk factors that are most likely to influence that outcome. These absolute risk factors include management quality, financial leverage, franchise durability, and free cash flow valuation.

While IFP seeks a diversified portfolio, it would not sacrifice either quality or value to achieve diversification or Benchmark characteristics. IFP’s absolute approach to risk has resulted in historical portfolio returns that are substantially less volatile than the Benchmark.

Management fee: 1.38% pa (of net asset value of fund and inclusive of GST).

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

Generally annually

  • Lonsec1 – Highly recommended
  • Zenith2 – Highly recommended
  • Morningstar3 – four star Morningstar RatingTM (quantitative rating)
  • Morningstar3 – Silver Morningstar Analyst RatingTM (qualitative rating)

These reports are only available to licensed financial advisers on request. Please contact your local BDM.

Available on:

  • AMP Personalised Portfolio Service
  • Asgard
  • Australian Executor Trustees
  • BT Panorama
  • BT Wrap
  • FirstWrap
  • Hub 24
  • IOOF Pursuit
  • Macquarie Accumulator
  • Macquarie Wrap
  • MLC Wrap
  • Netwealth
  • North
  • Oasis
  • PortfolioCare
  • Summit

Macquarie will use currency hedging to reduce the fund's exposure to foreign currency movements.

Latest performance report

Awards and recognition

The Fund has been recognised for excellence, recently receiving industry awards:

  • Winner – Best International Share Fund – Money magazine Best of the Best Awards 2017
  • Winner – Best International Share Fund – Money magazine Best of the Best Awards 2016
  • Winner – Best Global Equities Fund (Broad Cap) – Lonsec/Money Management Fund Manager of the Year Awards 2016

Find out how we can help


If you'd like to speak to a Macquarie Business Development Manager about how we can help, get in touch.