September, 2023
• The Fund returned -3.90%, net of fees, in September 2023, compared with a return for the Benchmark of -4.01%.
• Most sectors detracted in September in unhedged terms, with the Energy sector being the sole contributor. For the Fund, the largest relative sector contributors included holdings in Health Care, such as GSK and Novartis, and holdings in Materials, such as Corteva. Relative detractors included holdings in Financials, including ICE and S&P Global, and a lack of exposure to the Energy sector.
• GSK was among the top individual contributors to performance in September. The company’s recently launched respiratory syncytial virus (RSV) vaccine, Arexvy, is performing ahead of market expectations. Early data suggests its market share in the US is close to 70%, well ahead of initial market expectations of a 50:50 split with Pfizer. Arexvy also received regulatory approval in Japan, a large market with significant unmet need for adult RSV vaccines. This adds to the regulatory approval gained in Europe in June. In addition, new drug Ojjaara was approved in the US as the first and only treatment indicated for myelofibrosis patients with anaemia.
• Zillow was among the top individual detractors from performance in September. The stock’s weakness appeared to be driven by a combination of profit taking following strong year-to-date performance and a rise in longer-term US interest rates that is likely to continue to depress US housing transaction volumes. Franchise Partners are mindful that the on-going weakness in housing transactions could significantly reduce Zillow’s near-term free cash flow generation. However, Franchise Partners maintain the belief that the company can deliver above market revenue growth next year even if US housing transactions remain low due to new product initiatives that are starting to lead to large market share gains. Franchise Partners expect Zillow to emerge from the housing slowdown in a stronger competitive position due to these ongoing investments.
• During the month, Franchise Partners completed the initial purchase of Estee Lauder, and the final sale of Microsoft. Estee Lauder has leading market positions across all major luxury sub-categories of skincare, make-up and fragrances. Having followed the company for many years, the opportunity to initiate the position arose from the 60% share price decline price from its April 2022 peak. This decline was driven by a rapid slowdown in the company’s most profitable travel retail channel, particularly in Asia. Franchise Partners view this slowdown as transitory and expect profits, margins and cash flows to revert towards historic levels in the years ahead. This recovery is underpinned by long term demographic trends that are supportive of Asian travel retail, including growing female workforce participation in Asia, a growing middle-class population, and increased international travel. Although Franchise Partners continue to admire the quality of the Microsoft business, having generated attractive returns since the position was initiated, the valuation no longer represents an attractive risk-reward proposition.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-2-1.pdfAugust, 2023
• The Fund returned 2.22%, net of fees, in August 2023, compared with a return for the Benchmark of 1.60%.
• Most sectors advanced in August in unhedged terms, led by Energy, Health Care, and Communication Services. For the Fund, the largest relative sector contributors included holdings in Financials, such as Aon and ICE, and holdings in Consumer Discretionary, namely Booking Holdings and eBay. Relative detractors included holdings in Materials, namely Corteva, and a lack of exposure to the Energy sector.
• News Corp. was among the top individual contributors to performance in August. The company released better-than-expected fourth quarter results. Digital represented more than 50% of total revenues for the full year, the first time in the company’s history. The growth of business-to-business products in the Dow Jones division was strong and is likely to be the largest contributor to the division’s profits next year. Further, subscription video service Foxtel returned to growth and is expected to complete a refinancing that should facilitate repayments of outstanding shareholder loans from News Corp., a first step towards a potential IPO.
• Electronic Arts was among the top individual detractors from performance in August. The company reported solid first quarter results, but management’s guidance for the full year was weaker than expected. Franchise Partners are not overly concerned about the full year outlook, as it is driven by weakness in EA’s lower-value shooter title Apex Legends and its mobile division. Importantly, performance of the company’s core sports titles is strong, and Franchise Partners expects revenues and margins to improve next year once the multiple titles currently in development are released.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-1-2.pdfJuly, 2023
• The Fund returned 0.50%, net of fees, in July 2023, compared with a return for the Benchmark of 2.09%.
• Another positive month for the benchmark saw all sectors advance, with Financials, Communication Services and IT making the largest contributions. The largest relative sector detractors from the Fund included holdings in Financials, including Aon and S&P Global, and holdings in Communication Services, including Fox and Nintendo. Relative contributors included holdings in Real Estate, namely Zillow, and holdings in Industrials, including RB Global and TransUnion.
• Booking Holdings was among the top individual contributors to performance in July. Airline and hotel companies’ quarterly results as well as third-party data indicate that consumer demand for travel post Covid remains strong. Franchise Partners continues to think that Booking is well placed to increase its market share due to its brand strength, the broad geographic footprint of its listings, and its continued investment in improving the consumer experience.
• Aon was among the top individual detractors from performance in July. The company reported solid second quarter results, however industry-wide weakness in M&A services revenues affected Aon more than its peers due to the larger size of this segment within its business mix. Franchise Partners thinks this M&A services slowdown is due to short term, cyclical reasons rather than structural ones. The company remains on course to achieve at least mid-single-digit organic revenue growth and operating margin expansion, and double-digit free cash flow growth for the full year. Further, Aon’s core business continues to perform well, with average retention rates of approximately 95%.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-23.pdfJune, 2023
• The Fund returned 3.29%, net of fees, in June 2023, compared with a return for the Benchmark of 3.12%.
• A strong month for the index saw most sectors move higher, led by Consumer Discretionary, Industrials and Materials. The largest relative sector contributors to the Fund included holdings in Communication Services, led by Fox; holdings in Financials, including Aon and S&P Global; and holdings in Industrials, led by RB Global. Relative detractors included holdings in Consumer Discretionary, which lagged the rise of the broader sector, and holdings in Consumer Staples, namely Reckitt Benckiser.
• RB Global was among the top individual contributors to performance in June. Shares in the company recovered following weakness in May driven by the market rotation towards more cyclical stocks. Franchise Partners continues to think RB Global is a high-quality company with attractive market shares that benefit from strong brands and two-sided network effects, as well as databases with extensive buyer and inventory data.
• Salesforce was among the top individual detractors from performance in June. Salesforce’s shares declined following the release of first quarter results that were in line with management’s guidance, but which did not meet the market’s elevated expectations. Given the greater than 50% share price appreciation since the start of the year which has, in part, been driven by the market’s elevated expectations, Franchise Partners took the opportunity to reduce the position size last month.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-22.pdfMay, 2023
Performance summary:
• The Fund returned -2.18%, net of fees, in May 2023, compared with a return for the Benchmark of -0.22%.
• A strong performance by the IT sector disguised an otherwise tepid month for the index, with the Energy, Consumer Staples, Financials and Health Care sectors, amongst others, detracting. For the Fund, the largest relative sector detractors were an underweight to IT, as well as holdings in Consumer Staples, particularly BAT and Philip Morris, and an overweight to the sector. Relative contributors included a lack of exposure to Energy, and holdings in Financials, namely S&P Global.
• Salesforce was among the top individual contributors to performance in May. Shares in the company appeared to benefit from the broader market rotation towards faster growing, more cyclical stocks, particularly those in the IT sector and specifically companies focused on artificial intelligence. Given the share price rise, Franchise Partners took the opportunity to reduce the position size in Salesforce towards the end of the month.
• BAT was among the top individual detractors from performance in May. Shares in the company appeared to be affected by the broader weakness in the Consumer Staples sector, as well as the unanticipated announcement that CEO Jack Bowles has been replaced by CFO Tadeu Marroco. Franchise Partners understand the market’s negative reaction to the CEO’s unexpected departure but believe Marroco is a solid appointment and do not think the company’s strategy is likely to change significantly. Bowles’ departure follows a recent large fine from the US Department of Justice for engaging in commercial activity in sanctioned countries in the AsiaPacific region in the early-to-mid-2010s. The company has subsequently overhauled its global compliance function and increased senior executive oversight to help prevent a repeat of this activity. • There were no initial purchases or final sales within the portfolio during the month.
April, 2023
• The Fund returned 4.69%, net of fees, in April 2023, compared with a return for the Benchmark of 3.16%.
• Gains in global equity markets were broad-based, with all sectors rising, led by Consumer Staples, Energy, and Health Care. The largest relative sector contributors for the Fund were holdings in IT, led by Microsoft and Oracle, and an underweight to the sector, as well as holdings in Industrials, such as TransUnion and Ritchie Bros. Relative detractors included holdings in Real Estate, namely Zillow, and an underweight to the Energy sector.
• Novartis was among the top individual contributors to performance in April. The company continued to benefit from the announcement in March of positive clinical trial results for the expanded use of its drug Kisqali in the treatment of early-stage breast cancer. Franchise Partners estimates that it represents a US$6-8 billion revenue opportunity for Novartis. The company also reported stronger-than-anticipated quarterly results in late April. Revenue and operating profit were both ahead of market estimates, driven largely by the strength of its recently launched pharmaceutical products.
• Bristol-Myers Squibb was among the top individual detractors from performance in April. The company announced the failure of a clinical trial for the use of its drug Sotyktu to treat Crohn’s disease, as well as the pending retirement of Giovanni Caforio as CEO in November 2023. Caforio will be replaced by Chief Commercialisation Officer Christopher Boerner. Franchise Partners have met with both Caforio and Boerner since the announcement, and do not expect Bristol’s strategic priorities to change materially. Caforio has been CEO for eight years and will continue in the role of Executive Chairman, while Boerner is an internal appointment who has been with the company since 2015. Bristol also announced solid quarterly results during the month.
• There were no initial purchases or final sales within the portfolio during the month.
File:March, 2023
The Fund returned 4.99%, net of fees, in March 2023, compared with a return for the Benchmark of 3.88%.
• IT, Communication Services and Health Care drove the market higher again in March, while the Financials sector was the only major detractor. For the Fund, the largest relative sector contributors were holdings in Financials, including Aon and ICE, and an underweight to the sector, as well as an underweight to Energy. Relative detractors included holdings in Communication Services, namely Fox, partially offset by overweight positioning.
• Salesforce was among the top individual contributors to performance in March. The market has continued to react positively to activist involvement in the company; four activists have now purchased the stock since Franchise Partners initiated the position in Q1 2022. A key component of the initial investment thesis was the opportunity to improve margins, which could be realised more quickly than initially expected due to the increased focus from these activists. Franchise Partners will continue to closely monitor the activists’ demands and Salesforce’s response to ensure that the long-term health of the franchise remains intact.
• TransUnion was among the top individual detractors from performance in March. It appears the stock may have been affected by market concerns that some of TransUnion’s financial services customers may reduce their credit activity due to the volatility in the US banking sector. Franchise Partners continues to think the company remains well positioned to deliver attractive free cash flow compounding over the long term, despite the near-term economic headwinds and banking sector uncertainty.
• During the month, Franchise Partners completed the final sale of Alphabet. The decision was driven by uncertainty over the long-term growth potential for Google Search. Google Search’s sheer size means that it will be challenging for the company to meet consensus expectations of double-digit growth going forward. In addition, internet search is close to 35% of total global ad spend, and Franchise Partners do not think that Google can gain further significant market share in the next decade. There is some scope for margin expansion, however Franchise Partners do not think it will be a focus for management given the competitive threat posed by the shift to AI-driven search. While the short-term impact of ChatGPT on Bing and Google search revenue is likely to be limited, there is now a plausible long-term competitor in the form of Microsoft.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-21.pdfFebruary, 2023
• The Fund returned -0.27%, net of fees, in February 2023, compared with a return for the Benchmark of 2.09%.
• Positive performance in the IT, Industrials and Financials sectors led the market higher in February; minor detractors included Real Estate and Energy. For the Fund, the largest relative sector detractors were holdings in Communication Services, led by News Corporation and Electronic Arts, and in Financials, including S&P Global. Relative contributors included underweights to Energy and Utilities, and holdings in Consumer Discretionary, such as Booking Holdings and Richemont.
• Fox was among the top individual contributors to performance in February. Shares in the company rose following the release of its second quarter results and the announcement of an additional US$3 billion share repurchase program. Revenue increased 4% and EBITDA increased 71% compared to the prior year. Fox’s advertising revenue also significantly outperformed that of its peers in a softer advertising market. Audience trends remain strong driven by Fox’s live news and sports programming. The share repurchase program highlights the strength of the company’s balance sheet, which Franchise Partners believes is well positioned to cover potential liabilities from the ongoing Dominion and Smartmatic lawsuits.
• News Corporation was among the top individual detractors from performance in February. The company released disappointing quarterly results and later announced it was no longer in discussions with CoStar to sell its US real estate portal business. News’ revenues and EBITDA fell slightly short of forecasts, largely due to advertising weakness and inventory re-stocking in its publishing business. Franchise Partners thinks these are short-term rather than structural weaknesses and therefore considers the market’s reaction excessive. The share price declined further following the news that CoStar was no longer in talks to acquire realtor.com. Franchise Partners believed that CoStar’s potential acquisition of realtor.com made strategic sense and are disappointed it has been called off, but it is important that any potential offer reflects that realtor.com is a highly attractive asset, and it is understood that there are other interested parties.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-Performance-Report-PRRP-IFPGFF-ANZ-21.pdfJanuary, 2023
Performance summary
• The Fund returned 5.15%, net of fees, in January 2023, compared with a return for the Benchmark of 2.97%, as improved investor sentiment around a potential end to the global rate-hiking cycle drove equity market gains.
• Most market sectors, led by IT and Consumer Discretionary, advanced in January; Health Care and Consumer Staples were notable exceptions. For the Fund, the largest relative sector contributors were holdings in Real Estate, namely Zillow, and in Consumer Discretionary, such as Richemont and eBay. Relative detractors included holdings in Financials, which lagged the rise of the broader sector, and an overweight to Health Care.
• Zillow was among the top individual contributors to performance in January. Shares in Zillow moved higher as improved US mortgage application data pointed to a stabilisation, and then an increase, in US home buying interest in January. Franchise Partners continues to think Zillow is well placed to improve medium-term revenues and margins by better monetising its strong brand. Almost 70% of US consumers start their home search on Zillow, but the company currently only monetises around 3% of housing transactions. Zillow has several near-term product development initiatives that should help to close this gap.
• Johnson & Johnson was among the top individual detractors from performance in January. The company appeared to be affected by the market’s rotation away from more defensive stocks towards faster growth stocks.
• During the month, Franchise Partners completed the initial purchases of Ritchie Bros. Auctioneers and IAA, and the final sale of Western Union. Ritchie Bros. is the leading North American auctioneer of industrial equipment, with a market share of approximately 85%. IAA is a US focused salvage car auction platform and operates in an attractive market duopoly. The opportunity to purchase shares in both companies arose following the announcement in November of the potential acquisition by Ritchie Bros. of IAA. The deal should enable Ritchie Bros. to accelerate its highly successful satellite yard strategy, improving its proximity to potential inventory consigners, but notes that both companies are attractive as standalone businesses should the acquisition not receive shareholder approval. While Franchise Partners continues to think Western Union has a strong, globally recognised brand and network of exclusive retail affiliates, the company was sold over concerns about the pace of the transition in its digital operations, given the increasingly competitive digital money transfer market.
December, 2022
Performance summary:
• The Fund returned -5.96%, net of fees, in December 2022, compared with a return for the Benchmark of -5.49%, with equity markets troubled by central bank messaging on the trajectory of interest rate rises.
• All market sectors declined in December, led in particular by IT, Consumer Discretionary and Communication Services. For the Fund, the largest relative sector detractors were holdings in Real Estate, namely Zillow, and in Materials, driven by Corteva. Relative contributors included holdings in Consumer Discretionary, which proved defensive compared to the wider sector, and an underweight to IT.
• Novartis was among the top individual contributors to performance in December. The company continues to make progress on its drug pipeline. It reported positive headline results for the use of Pluvicto in the treatment of prostate cancer during the month. The drug is already used in post-chemotherapy treatment, and the latest results suggests it could be successful in the larger, lucrative pre-taxane prostate cancer market. This followed positive data from a trial of Iptacopan for the treatment of PNH, a life-threatening blood disease.
• Bristol-Myers Squibb was among the top individual detractors from performance in December. Weakness in the company’s share price appeared to be driven by profit taking following strong performance during 2022. Franchise Partners continues to think Bristol is one of the better-invested large cap pharmaceutical companies and that it has one of the best drug pipelines in its peer group. Franchise Partners believes the pipeline is underappreciated by the market and should allow Bristol to successfully navigate its sizable but known upcoming patent expirations.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-19.pdfNovember, 2022
• The Fund returned 4.16%, net of fees, in November 2022, compared with a return for the Benchmark of 2.02%, with markets maintaining their positive trajectory despite ongoing inflation and interest rate uncertainty.
• Cyclical sectors, led by Materials, Industrials and Financials, drove the index higher in November. For the Fund, the largest relative sector contributors were holdings in Consumer Discretionary, such as Richemont and eBay, and in Communication Services, such as News Corporation and Informa. Relative detractors included holdings in Materials, namely Corteva, and an underweight to Industrials.
• Richemont was among the top individual contributors to performance in November. The company released strong half year results, with underlying sales growing by 16% driven by the company’s high margin jewellery brands, Cartier and Van Cleef & Arpels. This revenue growth was well balanced geographically, with US and European revenue growth more than offsetting China, which remains affected by lockdowns. Franchise Partners continues to believe that Richemont is well placed in the attractive luxury jewellery segment. Cartier and Van Cleef & Arpels are among the strongest brands in the segment and have substantial pricing power.
• Salesforce was among the top individual detractors from performance in November. Shares in the company were likely affected by broader macroeconomic concerns that are starting to impact other leading software companies. Broker surveys conducted in November also showed signs of weakness in software customer demand. The company further announced the surprise departure of co-CEO Bret Taylor. However, founder and fellow co-CEO Marc Benioff has navigated multiple executive transitions over the past two decades. Management has demonstrated strong cost discipline which led to margin expansion in the quarter.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-18.pdfOctober, 2022
The Fund returned 6.87%, net of fees, in October 2022, compared with a return for the Benchmark of 7.81%, with the MSCI World Ex Australia Index recording its strongest monthly bounce since May 2013.
• All market sectors moved higher in October, with IT, Health Care and Financials the largest contributors to index returns, and Energy a notably strong performer. For the Fund, the largest relative sector detractors were a lack of exposure to Energy, and holdings in Industrials, which lagged the rise of the broader sector, as well as an underweight to the sector. Relative contributors included holdings in IT, such as Oracle and Salesforce, and in Consumer Discretionary, such as Booking Holdings and eBay.
• Oracle was among the top individual contributors to performance in October. The company issued long-term guidance at its annual analyst day that significantly exceeded market expectations for both revenues and margins. This was the first long-term guidance that Oracle had released in over a decade and reflects the strong progress made in transitioning both its application and database business to the cloud.
• Fox was among the top individual detractors from performance in October. Shares in the company declined following the announcement that its largest shareholder, the Murdoch Family Trust, is exploring a re-combination with News Corp. As the larger company, it appears the market is concerned that Fox would pay a premium to acquire News Corp. Franchise Partners are shareholders of both companies and think each of their share prices are materially undervalued. While Franchise Partners think there are operational benefits from a combination, the investment team believe it would be in the best interests of both companies for News Corp to have first completed the sale or spin-off of its valuable real estate portal assets. Franchise Partners will continue to actively engage with both companies on the potential equity combination.
• During the month, Franchise Partners completed the final sale of Accenture. The company has transitioned from more commoditised IT services towards faster growth, premium-priced services like cloud software and digital marketing. In doing so, it has consistently gained market share and compounded revenue and free cash flow at a mid-to-high-single digit rate. While Franchise Partners thinks Accenture can continue to grow and gain market share, the investment team believes the company’s valuation no longer provides adequate compensation for the risks Accenture faces.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-17.pdfSeptember, 2022
• The Fund returned -2.86%, net of fees, in September 2022, compared with a return for the Benchmark of -3.23%, with ongoing inflation concerns and higher interest rates again resulting in a negative month for global equities.
• Health Care was the sole positive market sector in September, with IT, Industrials and Communication Services the largest detractors from index returns. For the Fund, the largest relative sector contributors were holdings in Health Care, such as Bristol-Myers Squibb and Johnson & Johnson, and in Communication Services, namely Nintendo. Relative detractors included holdings in Consumer Discretionary, such as eBay and Richemont, and in Industrials, such as TransUnion.
• Bristol-Myers Squibb was among the top individual contributors to performance in September. The company’s key pipeline drug Sotyktu, an oral treatment for plaque psoriasis, was approved by the US Food and Drug Administration. It was approved without the requirement for additional warnings on the label that some analysts expected and that would restrict physician take up. Franchise Partners think Bristol is now well placed to achieve its Sotyktu sales guidance of over $4bn in 2029 due to broader usage and higherthan-expected pricing.
• Oracle was among the top individual detractors from performance in September. The share price weakness appeared to be driven by the market’s rotation away from cyclical and technology stocks. While mindful of these near-term headwinds, Franchise Partners continues to think Oracle is a high-quality company.
• During the month, Franchise Partners completed the final sale of Haleon. Haleon is the world’s largest consumer healthcare company, with shares received by the Fund in July following its spin-off from GlaxoSmithKline. It has leadership positions in a number of attractive markets, including therapeutic oral care (Sensodyne), vitamins (Centrum), pain relief (Panadol, Advil and Voltaren) and respiratory health (Flonase and Otrivin). While the investment team think the company can steadily grow revenues and improve margins, they did not believe Haleon represented an attractive risk/reward proposition given its valuation.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-16.pdfAugust, 2022
• The Fund returned -4.12% in August 2022, compared with a return for the Benchmark of -2.54%, as global equity markets resumed their downward trajectory amid sustained monetary policy tightening and economic growth concerns.
• Energy was the sole positive market sector in August, with the IT, Health Care and Consumer Discretionary sectors leading the index lower. The Fund’s largest relative sector detractors were holdings in Health Care, such as GlaxoSmithKline and Bristol-Myers Squibb, and holdings in IT, including Salesforce and Western Union. The largest relative contributors were holdings in Materials, namely Corteva.
• Corteva was among the top individual contributors to performance in August. The company released better-than-expected second quarter results and increased full year profit guidance. Strong organic growth was driven by a combination of pricing and improved execution, while margins increased across both its seed and crop protection divisions. Franchise Partners continues to think Corteva has the opportunity to significantly improve its profit margins, primarily through the development and commercialisation of its in-house seed traits pipeline. Progress has been positive, with management increasing the penetration of its leading Enlist product to over 45% of US soy acres.
• GlaxoSmithKline (‘GSK’) was among the top individual detractors from performance in August. Shares in the company declined primarily due to concerns that one of its historic prescription drugs, Zantac, is carcinogenic. Franchise Partners is experienced with these types of legal concerns and think the market’s reaction is overly pessimistic. GSK brought Zantac – a medicine that reduces stomach acid production – to market in 1983. It went off patent in 1997 and was subsequently available in branded and generic forms from GSK and several other pharmaceutical companies. The drug was first potentially linked to cancer in late 2019 and the pharmaceutical companies voluntarily withdrew it within a few months. No court cases have yet been tried and the current medical evidence appears to favour the pharmaceutical companies. Nonetheless, should GSK be found liable, Franchise Partners is confident that the potential liability will prove manageable based on case precedents.
• There were no initial purchases or final sales within the portfolio during the month.
July, 2022
The Fund returned 4.46% in July 2022, compared with a return for the Benchmark of 6.40%, with global equities posting their first positive monthly return since 2021 despite ongoing inflation and interest rate concerns.
• All market sectors moved higher in July, led by IT, Consumer Discretionary and Industrials. For the Fund, the largest relative sector detractors were holdings in Health Care, including Bristol-Myers Squibb and GlaxoSmithKline, as well as holdings in IT, which lagged the rise of the broader sector, and an underweight to the sector. Relative contributors included holdings in Financials, such as S&P Global, Aon, and Intercontinental Exchange.
• eBay was among the top individual contributors to performance in July. Shares in the company benefited from the broader market rotation away from more defensive stocks during the month, partly reversing their significant share price falls during the first half of the year.
• Bristol-Myers Squibb was among the top individual detractors from performance in July. This weakness appeared to be driven by the market’s rotation away from more defensive stocks and from those that had outperformed during the substantial market decline in the first half of the year.
• During the month, the Fund received shares in Haleon, the former consumer healthcare division of GlaxoSmithKline, following its spinoff. Haleon is the largest consumer healthcare company in the world. It has leadership positions in a number of attractive markets, including therapeutic oral care (Sensodyne), vitamins (Centrum), pain relief (Panadol, Advil and Voltaren) and respiratory health (Flonase and Otrivin). Franchise Partners estimates that these high gross margin categories should grow by around 4-6% per year, and also believes the company can steadily improve margins though innovation and operating leverage.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-14.pdfJune, 2022
The Fund returned -2.64% in June 2022, compared with a return for the Benchmark of -4.64%, with market attention centred once again on the potential impacts of rising inflation and the monetary policy response.
• Health Care and Consumer Staples were the lone positive sectors for the market in June, with the Energy sector yielding part of its strong year-to-date return. For the Fund, the largest relative sector contributors were holdings in IT, such as Salesforce, and in Financials, including Aon and S&P Global. Relative detractors included holdings in Real Estate, namely Zillow Group, and in Consumer Discretionary, including Booking Holdings and eBay.
• Bristol-Myers Squibb was among the top individual contributors to performance in June. The company announced a number of positive data releases, including impressive three- and five-year follow up data for cancer treatments based on its key immuno-oncology drug, Opdivo. Bristol faces sizable and well-understood patent expiration headwinds, but Franchise Partners continue to think that the continued progression of its pipeline of new drugs leaves it well placed to offset these patent expirations.
• Zillow Group was among the top individual detractors from performance in June. The share price weakness was driven by market concerns that the sharp rise in US mortgage rates will weigh on US housing transactions and prices. While near-term cyclical pressures are acute, Franchise Partners continue to believe that Zillow has a substantial opportunity to monetise its dominant position in US property search. The company is investing in new product rollouts and improvements across home viewing, mortgage, and seller services
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-13.pdfMay, 2022
• The Fund returned -2.63% in May 2022, compared with a return for the Benchmark of -0.83%, with equity markets steadying somewhat despite the ongoing headwinds of rising inflation, tighter monetary policy and surging energy prices. • The IT and Consumer Discretionary sectors weighed on market performance in May, while Energy and Financials moved higher. The Fund’s largest relative sector detractors were holdings in Financials, including ICE, Aon and S&P Global, and an underweight to Energy. Relative contributors included holdings in Materials, namely Corteva.
• Electronic Arts was among the top individual contributors to performance in May. Shares in the global video game developer rose following strong fourth quarter results and press reports of discussions about a potential sale or merger. Player trends remain robust, particularly for its key sports franchises. While the press reports of sale discussions over the last few years with Apple, Amazon, Disney and NBC Universal are unverified, they do highlight EA’s strategic importance as technology, traditional media, and video games increasingly converge.
• News Corporation was among the top individual detractors from performance in May. The company released quarterly results that were in line with consensus estimates; however, it appears the market was disappointed that the results did not significantly exceed expectations, as they had in recent quarters. Underlying revenues increased 6%, with continued strong growth
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-12.pdfApril, 2022
The Fund returned -1.27% in April 2022, compared with a return for the Benchmark of -3.17%, as the prospect of tighter monetary policy in the face of rising inflation, coupled with the ongoing conflict in Ukraine drove equity markets down during the month.
• The IT and Consumer Discretionary sectors led the market lower in April, while Consumer Staples was a notable positive contributor to index performance. The Fund’s largest relative detractor was holdings in Real Estate, specifically Zillow Group. This result was offset by allocations to Health Care, such as Bristol-Myers and Novartis, and an overweight to Consumer Staples.
• Bristol-Myers was among the top individual contributors to performance in April. The company reported first quarter revenues slightly ahead of market expectations, growing 7% in constant currency. Bristol also received approval for Camzyos, an important first-in-class medicine to treat symptomatic obstructive hypertrophic cardiomyopathy. The company forecasts over $4 billion in peak sales for the drug and Franchise Partners believe its successful commercialisation will be important in helping offset Bristol’s upcoming patent expires. • Zillow Group was among the top individual detractors from performance in April. The company’s share price weakness was driven by market concerns that higher US mortgage rates will weigh on US housing transaction and prices. Franchise Partners are mindful of this risk, however, believe that in the long-term it is outweighed by the structural opportunity to close the gap between the company’s 70-80% share of US property search and its approximate 10% share of the property advertising market. • There were no initial purchases or final sales within the portfolio during the month
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-11.pdfMarch, 2022
The Fund returned -1.66% in March 2022, compared with a return for the Benchmark of -0.89%, as equity markets recovered from steeper intra-month losses on signs of economic strength, and despite the ongoing conflict between Ukraine and Russia and continuing supply chain issues.
• Financials and Consumer Staples led the market lower in March, while Energy and Health Care were notable positive contributors to index performance. The Fund's largest relative detractors were holdings in Consumer Staples, led by Reckitt Benckiser and Unilever, and in Real Estate, namely Zillow Group. These results were partially offset by holdings in Financials, including Aon and S&P Global, and an overweight to Health Care.
• Aon was among the top individual contributors to performance in March. Franchise Partners think the company has the opportunity to materially increase margins over the long-term as it evolves into an information services company and focuses on its "One Aon" business operating model. Franchise Partners believes Aon's high level of investment in data and analytics is a key differentiator and means it is well positioned to outperform its peers.
• Zillow Group was among the top individual detractors from performance in March. The company's share price weakness was likely in part due to rising US mortgage rates. While this may have a short-term impact on housing transactions, Franchise Partners think that it will be more than offset by the long-term structural trend of digitisation in the US property market. Franchise Partners believe that Zillow has the opportunity to significantly increase its revenues and margins, with its share of the US property advertising market in the low teens, substantially below its roughly 80% share of consumer property search.
• During the month, Franchise Partners completed the initial purchases of Salesforce and TransUnion. Salesforce is the leading cloud software vendor in the fast-growing CRM category. The company's key intangible asset is the switching costs customers face if they want to migrate to a competing product, which has led to customer retention in excess of 90%. A previous portfolio company, the core intangible asset of US credit bureau TransUnion is a combination of contributory and proprietary consumer credit data that allows it to deliver differentiated products to its business customers.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/PRRP-IFPGFF2-ANZ-IFP-Global-Franchise-Fund-II.pdfFebruary, 2022
The Fund returned -2.54% in February 2022, compared with a return for the Benchmark of -5.52%, as equity markets confronted elevated economic uncertainty driven by the conflict between Russia and Ukraine.
• Energy was the sole market sector to advance in February, with IT and Consumer Discretionary weighing most on index performance. For the Fund, the largest relative contributors were holdings in Communication Services, including Nintendo and Informa, as well as holdings in Real Estate, namely Zillow. The largest detractors on a relative basis were holdings in Consumer Discretionary, such as Booking Holdings and Richemont, and an underweight to the Energy sector.
• Zillow was among the top individual contributors to performance in February. The company reported full year results that were slightly ahead of expectations for the core portal business, as well as continued progress in exiting its home buying operations. Zillow also announced ambitious sales and EBITDA margin targets for 2025 that could potentially deliver significant upside for shareholders if achieved.
• Booking Holdings was among the top individual detractors from performance in February. Shares in Booking declined following management guidance that 2022 EBITDA margins will be lower than anticipated due to increased marketing investment. Franchise Partners thinks it makes sense to increase investment as travel re-opening accelerates and it is an opportunity to meaningfully grow market share from a position of commercial and financial strength. Booking also reported fourth quarter results slightly ahead of expectations, and the company has resumed its substantial share repurchase activity. • During the month, Franchise Partners began the final sale of CME Group on valuation grounds. The combination of an increase in volatility, which is positive for CME’s trading and hedging volumes, and changes in the level and shape of the US yield curve, have helped to deliver strong operational performance and share price appreciation.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-10.pdfJanuary, 2022
• The Fund returned -0.68% in January 2022, compared with a return for the Benchmark of -2.20%, with investor unease around inflation pressures and higher interest rates leading to a sector rotation and negative overall returns for equity markets. • Energy and Financials were the strongest market sectors in January, benefitting from a rotation out of traditional ‘growth’ sectors such as IT, Consumer Discretionary and Health Care. For the Fund, the largest relative contributors were holdings in Communication Services, including Fox, Nintendo and Informa, as well as holdings in Health Care, such as Bristol-Myers Squibb and GlaxoSmithKline. The largest detractors on a relative basis were holdings in Financials, such as S&P Global and Aon. • Fox was among the top individual contributors to performance in January. Shares in Fox appeared to benefit from the market’s rotation from growth – and particularly technology stocks – towards value during the month. Franchise Partners continues to think the company trades at an attractive valuation, and that this helps to demonstrate the importance of the Fund’s valuation discipline in more challenging market conditions.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-9.pdfDecember, 2021
The Fund returned 3.97% in December 2021, compared with a return for the Benchmark of 1.68%, with the positive result rounding out a strong calendar year for equity markets, despite ongoing unease around inflation pressures and the spread of the Omicron COVID-19 variant.
• Defensive sectors including Consumer Staples and Utilities saw the largest gains within the index in December. For the Fund, the largest relative contributors were holdings in Health Care, including Bristol-Myers Squibb and Novartis, as well as holdings in Consumer Discretionary, namely Booking Holdings. The largest detractor on a relative basis was the Fund’s lack of exposure to the Industrials sectors.
• Bristol-Myers Squibb was among the top individual contributors to performance in December. The company announced a new $15 billion share repurchase program as well as a 10% increase in the 2022 dividend. These announcements demonstrate the board’s confidence in Bristol’s cash generation. The company faces sizable but well understood patent headwinds over the next decade. However, Franchise Partners think the market underestimates the ability of Bristol’s existing drug pipeline to offset these pressures, as well as the company’s financial strength to invest in R&D to develop future drugs.
• Oracle was among the top individual detractors from performance in December. Despite reporting a strong set of quarterly results, the market responded negatively to the subsequent announcement of Oracle’s $28 billion acquisition of Cerner, a leading provider of digital information systems used within hospitals and health systems. This appeared to be due to concerns about Oracle’s balance sheet, the fact that Oracle’s share buyback program will be paused, and the limited communication from management about the transaction. While Franchise Partners are still working through the details, the team’s overall assessment is more positive. Cerner has been a long-term acquisition target for Oracle. Its healthcare vertical enterprise resource planning (“ERP”) software sits neatly alongside Oracle’s broader ERP software. Franchise Partners think the price paid is reasonable and that the acquisition should increase Oracle’s utilisation and scale in the infrastructure-as-a-service category.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-8.pdfNovember, 2021
The Fund returned 0.89% in November 2021, compared with a return for the Benchmark of 3.70%, with equity markets unsettled by the emergence of the new Omicron COVID-19 variant.
• Index gains were driven by the Information Technology and Consumer Discretionary sectors in November. For the Fund, the largest relative detractors were the portfolio’s holdings in Information Technology, which lagged the rise of the broader sector, and underweight positioning, as well as holdings in Communication Services, namely Fox and Informa, and an overweight to the sector. The largest contributors on a relative basis were the Fund’s holdings in Consumer Staples, most notably Unilever.
• Richemont was among the top individual contributors to performance in November. The company reported very strong second quarter results, driven by the continued strength of its jewellery brands, with sales increasing 43% compared to 2019. Revenue at its Specialist Watchmakers business also surpassed 2019 levels. This strong revenue growth, along with the transition to higher margin direct retail and online sales channels, drove significant margin improvement and more than doubled free cash flow.
• Zillow Group was among the top individual detractors from performance in November. Shares in Zillow declined following the initiation of the position on 4 November. Zillow.com is the leading US property website as measured by search activity and revenues, with an estimated 80% share of US property portal searches. The key intangible assets are Zillow’s brand, proprietary data, and agent switching costs. Zillow operates a differentiated lead generation revenue model, whereby property agents pay Zillow for its valuable buyer and seller leads. Agents are reliant on Zillow to drive their business, particularly given the highly fragmented nature of the market. Franchise Partners took advantage of the sharp share price decline following the announcement that Zillow will exit its home buying operation to build the position. The share price weakness continued following our initial purchase, which gave us further opportunity to add to the position later in the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-7.pdfOctober, 2021
The Fund returned 1.25% in October 2021, compared with a return for the Benchmark of 1.65%, with global markets rising despite ongoing concerns around higher inflation and a reduction in monetary policy support.
• Most market sectors were higher in October, with Consumer Discretionary and Energy recording the largest gains. For the Fund, the largest relative detractors from performance were an overweight to Communication Services, and holdings in the sector, including Nintendo, News Corporation and Fox, and holdings in Health Care, such as Bristol-Myers Squibb and Novartis. The largest contributors on a relative basis were the Fund’s holdings in Financials, led by Intercontinental Exchange (ICE) and Aon.
• ICE was among the top individual contributors to performance in October. The company released strong quarterly results, with energy revenues growing over 30%, driven by double-digit growth in both energy derivative volumes and rate per contract. Energy revenues are increasingly positioned towards decarbonisation through carbon trading and lower carbon fuels like liquid natural gas. In addition, ICE’s mortgage segment grew 7%, well-ahead of consensus expectations, despite the headwind to mortgage transaction volumes from higher long-term yields.
• Nintendo was among the top individual detractors from performance in October. The company’s shares have declined since Nintendo announced in early July that it will release a new Switch model featuring an enhanced OLED display, rather than the next generation of the Switch console, the Switch Pro. Franchise Partners are not concerned by the delay in the launch of the Switch Pro, with the current Switch and Switch Lite consoles continuing to sell well and soon to become Nintendo’s bestselling format of all time. Franchise Partners think the delay should further extend the life cycle of the current consoles
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-5.pdfSeptember, 2021
The Fund returned -1.97% in September 2021, compared with a return for the Benchmark of -3.05%, with global equity markets impacted by investor concerns around inflation and rising yields.
• The IT and Health Care sectors led the market lower in September, with a resurgent Energy sector the sole contributor to market returns. For the Fund, the largest relative contributors to performance were holdings in Communication Services, including News Corporation, Fox, and Nintendo. The largest relative detractors included holdings in Health Care, namely Novartis and Bristol-Myers Squibb, and an underweight to Energy.
• News Corporation was among the top individual contributors to performance in September. The company announced a US$1 billion share repurchase program and the termination of its “poison pill” rights agreement. Franchise Partners had been engaging with News since 2018 to remove the rights agreement and think it is an important improvement in the company’s governance structure. It is also a further sign that management is actively seeking to maximise the value of its sum-of-the-parts. In addition, the share repurchase program signals management’s confidence in News’ future cash flow prospects.
• Novartis and Bristol-Myers Squibb were among the top individual detractors from performance in September. Both companies were impacted by general weakness in the Health Care sector, driven by market concerns about US drug price regulation following the release of the US Energy & Commerce Committee’s proposal for the Build Back Better Act. The proposal involves significant changes to US drug pricing, including direct negotiation for Medicare, the adoption of international reference pricing, CPI limitations on drug price increases, and a cap on out-of-pocket Medicare Part D spending
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-1-1.pdfAugust, 2021
The Fund returned 1.92% in August 2021, compared with a return for the Benchmark of 3.10%, with global equity markets achieving another consecutive month of gains.
• All market sectors continued to move higher in August with the exception of Energy. For the Fund, the largest relative detractors were holdings in Communication Services, including News Corporation and Nintendo, and in Consumer Staples, led by Unilever. The largest relative contributors included the Fund’s sole holding in Materials, Corteva, and underweight positioning in Energy and Industrials.
• Aon was among the top individual contributors to performance in August. The market continued to respond positively to strong half year results and the legal clarity following the termination of the Willis Towers Watson acquisition, both of which were announced at the end of July. Aon operates in an attractive and stable insurance and reinsurance oligopoly. The business is evolving away from relying solely on high switching costs based on strong customer relationships and is increasingly benefitting from its brand and proprietary data assets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-4.pdfJuly, 2021
The Fund returned 3.15% in July 2021, compared with a return for the Benchmark of 4.03%, as the growth-oriented technology and health care sectors saw further gains following on from the prior month.
• All market sectors moved higher in July with the exception of Energy. For the Fund, the largest relative detractors were holdings in Communication Services, including Nintendo, and in Consumer Staples, notably Reckitt Benckiser. The largest relative contributors were holdings in Financials, including Aon and S&P Global, and holdings in IT, including Oracle and Accenture, though the latter was partially offset by the Fund’s underweight positioning to IT.
• Oracle was among the top individual contributors to performance in July. There are early signs that revenue growth is starting to accelerate, driven by Oracle’s investments in the cloud transition of its enterprise applications and databases. This has led to strong share price appreciation over the last few months and a commensurate reduction in the estimated free cash flow yield. Given this, Franchise Partners reduced the position size in late May and early June.
• Reckitt Benckiser was among the top individual detractors from performance in July. The company reported disappointing quarterly results and guided to margin pressure in the second half of this year due to raw material cost inflation. Organic revenue growth was lower than the market had expected, due to a challenging comparator period for Reckitt’s hygiene business, inventory disruption in its China infant formula business, and weak sales of cold and flu products due to COVID-19 mobility restrictions and the prevalence of face coverings.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-3.pdfJune, 2021
The Fund returned 2.74% in June 2021, compared with a return for the Benchmark of 4.71%, as falling concerns over higher inflation drove a strong rebound in the growth-oriented technology and healthcare sectors.
• June saw a reversal of the trends of the previous month, with a strong rise for the IT sector and falls for Financials and Materials. The largest relative contributors to the Fund’s performance were holdings in Financials, including S&P Global, and an underweight to the sector, as well as an underweight to Industrials. The largest relative detractors were holdings in Communication Services, including Informa and Nintendo.
• eBay was among the top individual contributors to performance in June. The company completed the sale of its Classifieds business to Adevinta, retaining a 44% stake in the combined company and receiving $2 billion in cash net of tax. These proceeds will be used to increase the 2021 share buyback program. By the end of this year, Franchise Partners estimates the company will have bought back and cancelled almost half of its outstanding shares since the spin-off of PayPal in 2015. eBay also agreed to sell its South Korean marketplace to Emart, retaining a 20% stake and receiving approximately $3 billion in gross cash proceeds. Franchise Partners believes this is a sensible strategic move as the Korean business is primarily a first-party eCommerce business, rather than a third-party marketplace, with different technology infrastructure to its other major markets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-2.pdfMay, 2021
The Fund returned 1.41% in May 2021, compared with a return for the Benchmark of 1.19%, with investor enthusiasm around a strong global macroeconomic backdrop driving equity markets higher. Investor optimism around economic conditions drove cyclical GICS sectors, including Energy, Financials and Materials, higher in May. Falls for pandemic winners Apple, Amazon and Tesla in particular, saw negative contributions from the Information Technology and Consumer Discretionary sectors.
For the Fund, the largest relative contributors to performance were holdings in Consumer Discretionary, including Richemont and eBay, as well as holdings in Communication Services, such as Nintendo and News Corp. The largest relative detractor was the Fund’s sole holding in the Materials sector, Corteva. Richemont was among the top individual contributors to performance in May. The company reported strong fourth quarter results and robust near-term trading volumes. Fourth quarter sales increased 30% on an underlying basis, driven by significant strength in key jewellery brands Cartier and Van Cleef & Arpels, which are continuing to outperform in the structurally growing branded jewellery category. In addition, there are early signs that Richemont’s weaker performing divisions, including its specialist watchmakers and its YOOX NET-A-PORTER online distribution business, are starting to benefit from increased management attention. Management expects profitability in both divisions to improve over the next couple of years
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/IFP-Global-Franchise-Fund-II-Performance-Report-PRRP-IFPGFF2-ANZ-1.pdfJanuary, 2021
The Fund returned -0.79% in January 2021, compared with a return for the Benchmark of -0.45%, with global equities recording a subdued start to the year against a backdrop of economic uncertainty. • Most sectors moved lower in January, with the notable exceptions of Energy, as oil prices climbed across the month, and Health Care. For the Fund, the largest relative detractors were holdings in Information Technology, including Oracle and Accenture, and an overweight to Consumer Staples.
The largest contributors on a relative basis were holdings in Communication Services, including News Corporation and Fox, and the Fund’s sole holding in the Materials sector, Corteva.
• News Corporation was among the top individual contributors to performance in January. There was no material company specific news during the month. Franchise Partners continue to think that the company owns a collection of unique and well-invested media assets that remain significantly undervalued by the market. These include the leading Australian real estate company REA Group, Dow Jones, Harper Collins and the US real estate portal realtor.com, which is demonstrating improved financial performance.
• Nintendo was among the top individual detractors from performance in January. There was no material company specific news during the month, and it appears the market was taking profits given the stock’s strong 2020 return. Franchise Partners continue to see potential for an extended Switch console lifecycle, with the launch of a number of new software titles scheduled for 2021.
• During the month, Franchise Partners completed the final sale of IBM. Although the company’s valuation seems optically attractive, an increasing lack of confidence in cloud development platform-as-a-service OpenShift prevailing as a key long-term player in the container market undermined the investment team’s faith in the vitality of the Red Hat and IBM franchise.
• Franchise Partners’ investment approach offers several features relevant to the current market environment; in particular, the defining characteristic of companies held by the Fund is their possession of a dominant intangible asset, such as a brand, patent, or intellectual property. Such an asset can place a company in a stronger market position and allow it to weather periods of economic uncertainty
asset_class: Foreign Equity
asset_category: Large Blend - Fundamental
peer_benchmark: Foreign Equity - Large Fundamental Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: MAQ3060AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.macquarieim.com/resources/fund-performance-reports
Select related fund name => Monthly Report
fund_features:
IFP Global Franchise Fund II aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI World ex Australia Index, in $A hedged unhedged with net dividends reinvested.
- The 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 of high quality companies.
- These high quality companies possess a primary competitive advantage supported by a dominant intangible asset, such as a brand, patent or licence.
structure: Managed Fund