IFP Global Franchise FundExposure to companies with a unique competitive advantage

What the IFP Global Franchise Fund aims to offer

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

Fund facts
Investment objective 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).
Benchmark MSCI World ex Australia Index, in $A unhedged with net dividends reinvested
Inception date 17 November 2004
Fund size $A2,014.7m (current as at 31 October 2018)
Management fee 1.38% pa of the net asset value of the Fund
Performance fee 0.00%
Minimum investment $A20,000
Distribution frequency Generally annually
APIR code MAQ0404AU
Macquarie Professional Series The IFP Global Franchise Fund is proudly brought to you by Macquarie Professional Series. Learn more

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

A hedged version of the Fund is also available.

Investment strategy

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.

Performance

Net returns as at 30 November 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
IFP Global Franchise Fund** -3.56 -4.76 5.10 5.67 6.93 12.35 10.23
Benchmark*** -1.83 -6.62 2.02 4.23 8.23 11.74 6.96

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Unhedged:

Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 17 November 2004

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above

*** The benchmark is the MSCI World ex Australia Index, in $A unhedged with net dividends reinvested

Hedged

Net returns as at 31 October 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
IFP Global Franchise Fund (Hedged)** -2.85 -1.56 5.75 5.60 9.73 11.35 15.11
Benchmark*** -6.88 -4.73 -0.05 2.41 9.20 10.10 11.97

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Hedged:

Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 23 November 2009

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above

*** The benchmark is the MSCI World ex Australia Index, in $A hedged with net dividends reinvested

Managers

Hassan Elmasry
  • Lead Portfolio Manager
  • Hassan has 34 years of investment experience, with 16 years managing Franchise portfolios. He was at Morgan Stanley from 1995-2009, previously at Mitchell Hutchins Asset Management and First Chicago Corporation A.B. Economics; MBA, Finance (both

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Risks

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 this 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 or application for units being made and the time the redemption unit price or application unit price is calculated.

Market risk: Share markets can be and have been 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 negatively impact 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.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Download the Product Disclosure Statement – Unhedged Fund / Hedged Fund, Information Booklet, and check for PDS updates

Send us the Application Form and any required identification documents

Resources

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