Ashburton Investments launches Ashburton Global Leaders ZAR Equity Feeder Fund

Ashburton Investments has recently launched the Ashburton Global Leaders ZAR Equity Feeder Fund, the rand-based feeder of our highly successful dollar-based offshore Ashburton Global Leaders Equity Fund.

As of 1 April 2019, South African investors can access a high quality, concentrated portfolio of up to 25 of the world’s most prominent international mega-cap stocks such as Alphabet, Visa, Microsoft and Nestlé.

Each stock has a market capitalisation of over US$200 billion, has a global presence and is typically a constituent of a major index such as the FTSE or the Dow Jones.

Unconstrained by traditional benchmarks, the principal fund invests in industry leading companies which are characterised by quality attributes such as improving cash return spreads, relatively high predictability of earnings and management and balance sheet criteria. Through the careful selection of market leading stocks in attractive industries, the principal fund aims to deliver sustainably compounding total returns over the long term.

Since its inception in September 2013, the principal fund has delivered a 7% annualised return (to December 2018) and 11.48% year-to-date (31 March 2019). Considering the biggest sector exposures, the top three are Consumer Staples at 28%, followed by Information Technology at 25% and Health Care at 14%. 

While sector diversification within the portfolio is important, the fund also benefits from geographic diversification.

Of the major geographic holdings, the United States makes up the largest portion at 56%, followed by the United Kingdom at 14%, Benelux countries (Belgium, Netherlands and Luxembourg) at 11% and Switzerland at 10%.

One of the most appealing features of the feeder fund is that South Africans can access offshore investments without having to utilise their offshore allowance. And it can also be invested in through Tax Free Savings Accounts (TFSA). The fund has a minimum lumpsum investment of R5 000, or R500 by monthly debit order.