Ranmore Fund Management launched the Ranmore Global Equity Fund in October 2008.

Our goal is to grow your savings in real terms. We do this by investing in businesses that we think are selling for less than their underlying value. The fund has returned 9.4% per year since inception, well ahead of inflation.  This return grew $100 into $358.

 

How we invest

We scour global markets for examples of mispricing – businesses that we think are selling for less than their underlying value. We look anywhere and at any size of business for these opportunities. It may seem odd that a business would sell for less than it’s worth but in fact the prices of listed companies vary wildly over time while the underlying business value changes only gradually. Share prices react to short-term news, economic cycles and general sentiment. We strive to take advantage of these mispricings and generate higher returns than would otherwise be available in the stock market. Our investment decisions are driven by the difference between our underlying valuation and the market price.  We invest the Fund’s assets as an astute businessperson would invest their own money: in a collection of undervalued, cash generative businesses.

An important part of our process is avoiding overvalued businesses. Investors often get caught up in the excitement of a rapidly growing business. Over time they begin to justify paying any price for this growth. This is something we are very happy to step away from, even if it means missing out on potential short-terms gains. These situations often lead to permanent losses when the growth slows or reality bites.

We seek the truth. We attempt to discern what is going on in a business and avoid management bluster. Similarly, we guard against deceiving ourselves.

 

What do you pay us for

Of course, you could do the work of looking for undervalued assets, keeping a level head and buying when others see only fear, monitoring a business’s performance and choosing the correct time to sell. However, this is a full-time job, and it is the role you pay us to fulfil.

 

Why choose Ranmore

By the very nature of it, all Fund Managers think their methodology is the best way to manage money. So why chose Ranmore over another fund manager.

To our mind there are a few things to consider when choosing an active manager,

  1. Does the investment philosophy make sense to you?
  2. Has the manager followed the investment methodology consistently over time?
  3. Does the investment track record indicate success or failure?
  4. Has the same person managed the fund over the track record period?
  5. Do the fund managers have extensive experience of very different market conditions?
  6. Does the fund manager invest alongside you in the fund?
  7. Are the incentives of the fund manager aligned with your long-term interests, for example does the fund have a fixed fee structure?
  8. Does the fund manager follow their own course or are their decisions driven by what is in the benchmark index or protecting their business interests?

 

If our investment philosophy, as outlined in “How we invest” makes sense to you, Ranmore may be the fund manager for you.

 

Costs

We strive to keep costs as low and possible. Our Investment Management Charge is a fixed rate of 0.9% per year. This fee will reduce if our assets under management grow beyond $200m as we will pass the economies of scale onto our clients. This sliding scale will see us charge just 0.5% on assets over $1bn. And we will donate 25% of the fees we earn on AUM above $200m to worthy causes – chosen by you, our clients.

We will never charge performance fees. We are in a very privileged position that you have entrusted us with your savings and you have chosen us because you expect us to outperform. We don’t believe it’s right that  we should earn additional fees for performing as expected.

The fund is highly regulated. As a result, the fund incurs the costs of other third-party service providers, such as its Depositary (responsible for the safekeeping of the fund’s shares held globally), its Administrator (which independently calculates the value of the fund and manages your subscriptions and redemptions), its management company (which oversees the management of the whole fund). Their expenses as a proportion of fund assets are detailed in the table below. Many of these costs are fixed, so if our assets under management increase, they will become a smaller expense to you (and vice-versa if assets fall):

 

Ongoing Charges Figure*

Investment Management fee 0.90%
Performance fee Not applicable
Depositary fees 0.08%
Administrator fees 0.11%
Management company/oversight 0.06%
Legal 0.07%
Other third party costs** 0.22%
Total 1.44%

 

Fund Characteristics

Price relative to our valuation is the most import factor for share selection.

We hold about 45 different companies at any one time.

We invest in all types and sizes of business regardless of their domicile.

The fund bears no resemblance to the benchmark and will likely perform very differently from market indices and other global equity funds.

 

 

 

*Ongoing Charges Figure is calculated in accordance with ESMA Guidelines and is calculated as operating expenses of the Fund for the 12-month period ended 31/12/2021 as a percentage of Fund net assets of $83.5m over the same period. In accordance with ESMA Guidelines, it excludes broker commissions, which were an additional 0.19%

**Other third party costs include: audit fee, company secretarial fee, independent directors’ fees, Money Laundering Reporting Officer fee, tax preparation fees, MSCI and GICS fees, regulatory fees, Liquidity Stress Testing fees. The majority of Other fees are fixed and do not vary with the Net Asset Value of the Fund.

 

Performance

Returns displayed in currencies other than USD are for illustrative purposes only and are based on the prevailing NAV in USD at each measurement period converted to the display currency.

Returns displayed in currencies other than USD are for illustrative purposes only and are based on the prevailing NAV in USD at each measurement period converted to the display currency.

Returns displayed in currencies other than USD are for illustrative purposes only and are based on the prevailing NAV in USD at each measurement period converted to the display currency.

Returns displayed in currencies other than USD are for illustrative purposes only and are based on the prevailing NAV in USD at each measurement period converted to the display currency.

  • USD Investor Share Class
  • Morningstar Peer Group Average
  • MSCI World Index

November 2022 Cumulative Returns Annualised
  Class Price Month to date Year to date Latest 1 year Latest 3 years Latest 5 years Since inception(1) Date of inception
Ranmore Global Equity Fund plc USD 357.9 13.3% 1.6% 6.5% 7.6% 6.0% 9.4% 8 Oct 08
*MSCI World Index USD   7.0% (14.5%) (10.9%) 7.5% 7.4% 9.4%  
**Morningstar Peer Group Average     7.1% (17.6%) (14.3%) 4.2% 3.9% 6.0%  
Quartile       1st 1st 1st 2nd 1st  
Ranmore Global Equity Fund plc GBP (3) 312.9 9.1% 14.1% 17.5% 10.2% 8.5% 9.6% 30 Jun 10
Ranmore Global Equity Fund plc EUR (3) 296.8 8.5% 11.0% 16.0% 9.7% 8.9% 9.2% 30 Jun 10
Ranmore Global Equity Fund plc USD Advisor(2) 184.9 13.2% 1.2% 6.0% 7.1% 5.5% 5.3% 26 Jun 11

(1) Includes a period where the fund was incorporated in Jersey between 26/8/08 and 29/9/11.
(2) The USD Advisor Class carries an additional 0.5% p.a. fee which is paid to the financial intermediary.
(3) The Ranmore Global Equity Fund GBP and EUR Classes are not currency hedged classes. The difference between the returns in the Classes and the USD Class is due only to changes in the GBP/USD and EUR/USD exchange rates over the measurement periods.

The content of this promotion is directed in the UK to those persons who are Professional Clients or Eligible Counterparties (as defined by the Financial Conduct Authority) and is provided for information purposes only. It does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, shares, units or other interests in investments referred to herein. Applications to invest in the fund referred to in this presentation must only be made on the basis of the documentation relating to the specific investment and you should refer to your investment adviser. The above portfolio performance is for illustrative purposes only, calculated on a NAV to NAV basis and does not take any initial fees into account. Income is reinvested on the re-investment date. The latest returns are calculated on a rolling basis using the independently verified price for each fund that is nearest to the required starting period.Past performance is not necessarily an indication of future performance or returns. Ranmore Fund Management Ltd have taken all reasonable care to ensure that the information contained in this promotion is accurate at the time of publication, no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of such information. This promotion is approved for issue in the United Kingdom by Ranmore Fund Management Limited, Coveham House, Downside Bridge Road, Cobham, KT11 3EP, a firm authorised and regulated by the Financial Conduct Authority.

*MSCI disclaimer
Copyright MSCI 2022. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. None of this information in 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. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. This information is provided on an “as is” basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages.

**Morningstar disclaimer
Copyright © 2022 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed (save (i) as incidentally necessary in the course of viewing it on-line (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorised to view it on-line), or adapted in any way (3) is not warranted to be accurate, complete or timely. This Morningstar-sourced information is provided to you by Ranmore Fund Management Ltd and is at your own risk. You agree that Morningstar and or Ranmore Fund Management Ltd are not responsible for any damages or losses arising from any use of this information and that the information must not be relied upon by you the user without appropriate verification. Ranmore Fund Management Ltd informs you as follows: (i) The information provided should not form the sole basis of any investment decision (ii) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (iii) past performance is no guarantee of future results; and (iv) the value and income derived from investments can go down as well as up.

During the month of August 2021, Morningstar reassigned the Fund to the Morningstar category of Europe/Africa/Asia-domiciled funds in the Global Flex-Cap Equity category from the EAA Global Large-Cap Blend Equity category. In our opinion, the Flex-Cap category, which does not sub-divide between Value and Growth sub-categories, does not capture the Fund’s value investment style. The peer group data currently shows the of the EAA Global Large-Cap Blend Equity peer group.

UK Investors

Ranmore Global Equity Fund plc is available on the following platforms:

South African Financial Advisors

Ranmore Global Equity Fund plc is available on the following:

Latest Factsheet

Download Factsheet

By subscribing to this list you will receive the latest factsheet
every month via email.