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 an annualised 10.9% per year since inception, well ahead of inflation.  This return grew $100 into $520.

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 choose 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 $500m as we will pass the economies of scale onto our clients. This sliding scale will see us charge just 0.6% on assets over $1bn. 

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*

Fund Characteristics

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

We hold about 50 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 31/12/2023 as a percentage of Fund net assets of $88.9m over the same period. In accordance with ESMA Guidelines, it excludes broker commissions, stamp duty and other local taxes associated with buying and selling equities globally, which were an additional 0.26%

**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