The Investec Global Quality Equity Income Fund provides a differentiated approach to income investing. A long-term approach which has been proven since it was launched in 2007.
The Fund has an excellent track record and has achieved very attractive risk-return characteristics over the long-term.
Figure 1: Risk vs. return since March 2007, in USD
The Fund has a proven track record of outperformance in falling markets, dampening drawdowns for investors. Equally, the Fund has historically kept up with rising equity markets, resulting in attractive long-term outperformance.
Figure 2: Average rolling 12 month performance, in USD†
Calendar (and Index**) year returns: 2018: -8.3% (-9.4%) 2017: 17.6% (24.0%); 2016: 1.9% (7.9%); 2015: 8.0% (-2.4%); 2014: 3.8% (4.2%)
Performance is net of fees (NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD. If the share class currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Performance is based on the primary share class of the fund and would be lower on share classes with higher applicable charges. Source for figure 1 and 2: Investec Asset Management, 30 June 2019. Calendar year (and Index**) performance source: Morningstar, 5 years ending December 2018.**Index: MSCI AC World NR (MSCI World NR pre-1 Oct 2011).
Avoiding capital-intensive sectors such as utilities and natural resources, we focus on capital-light Quality companies that have the potential to pay a growing and sustainable dividend to investors.
Figure 3: Dividend received from US$100, invested in 1984
Source: Investec Asset Management, FactSet, 30 June 2019. The specific companies used herein are included to demonstrate the overall effect of compounding at the stock level, we compared a typical high quality health care company, with a fairly typical high growth cyclical mining company, and a fairly typical bond proxy utility company. The returns from different companies within these sectors will be different, with some better and some worse performers, but we think that these examples illustrate the point we are trying to make.
Past performance is not a reliable indicator of future results, losses may be made.
Specific risks: 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. 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.
All information is as at 30 June 2019, unless otherwise stated.
†Performance is based on the Guernsey B Global Opportunity Equity Fund that was launched on 30.03.07 and then merged on 03.12.10 into the newly launched GSF Global Opportunity Equity Fund in order to make the strategy more accessible to a broader range of investors. On 16.07.15 the Fund changed its name to Global Quality Equity Income Fund and its investment objective was clarified to reflect its above average income profile as well as long-term capital focus. Performance is based on the primary share class of the fund and would be lower on share classes with higher applicable charges.
Fund ratings may be provided by independent rating agencies based on a range of investment criteria, and do not constitute investment advice by Investec Asset Management. For a full description of the ratings please see www.investecassetmanagement.com/ratings.
Indices are shown for illustrative purposes only, are unmanaged and do not take into account market conditions or the costs associated with investing. Further, the manager’s strategy may deploy investment techniques and instruments not used to generate Index performance. For this reason, the performance of the manager and the Indices are not directly comparable.
MSCI data is sourced from MSCI Inc. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.