Following The Adviser Centre Monthly Review Meeting on 4^th October 2017, Orbis OEIC Global Equity (Standard) was added to The Adviser Centre as a Recommended fund.

The heritage of Orbis’ global equity strategy dates back to 1990, when it was launched for the firm’s institutional clients.  Both the firm and the strategy have grown significantly since then and the UK OEIC was launched in January 2014.  It is managed according to the same collegiate and distinctive approach.

Orbis OEIC Global Equity (Standard) is a stock-picking fund that is managed with a long-term perspective.  The team’s search for mis-priced stocks means that there is a strong element of contrarianism in the way the team invests and hence, this fund is best-suited to patient investors who are comfortable with the periods of underperformance that often characterise a high active share fund.  There is no structural style bias, with the team holding not only out-of-favour value stocks, but also optically-expensive stocks that they believe to be mis-priced, based on their fundamental analysis.  Overall, the strategy has a propensity to deliver stronger relative performance in markets that favour value as a style.

The investment approach is distinctive.  Teams of analysts based in various locations cover stocks from around the world and each of them runs a paper portfolio of their best ideas.  The head of the investment team, William Gray, selects the most talented stockpickers to work directly on the global equity strategy and he also decides upon the capital allocation between them.  This performance-driven culture has helped Orbis to deliver strong results for its clients over time.

Performance fee

A unique performance fee is applied to the fund.  This has been designed such that the fund pays a fee when outperformance is delivered and receives a refund when it underperforms.  The reference index is the MSCI World.  We have written a comprehensive Guidance note, which explains the fee structure in detail.  We also suggest referring to the fund’s prospectus and other marketing materials for more information about the performance fee.