Orbis Investment OEIC funds fee information

Refundable Performance Fees

A unique fee structure which aligns our interests with clients’.

One of our most important objectives is to maintain a clear alignment of interests with our clients. To that end, our fees have always been designed to reward us for superior performance as well as penalise us for underperformance.

What's So Special About Our Refundable Performance Fees?

Only Pay for Performance

Most funds charge a flat fee, regardless of how they perform. We don't. We believe that fees should be earned based on performance.

No surprise fees

No base fees.
No entry, exit or ongoing charges.
No administration, custody fees.
That's our style.

In it together

Our refundable performance fee has been structured so that fees are paid when we outperform, and refunds are paid when we underperform.

In a Nutshell

Ongoing charges

0%

Performance fee

Accrues at a rate of 50% of outperformance against each fund’s stated benchmark

Fee refunds

Refunded at a rate of 50% of underperformance against each fund’s stated benchmark

Non-refundable payment to Orbis

One third (annualised) of the Reserve NAV; up to a maximum of 2.5% (annualised) of the NAV of the Standard Share Class.

Benchmarks used

OEIC Global Equity Fund: MSCI World Index

OEIC Global Balanced Fund: 60% MSCI World Index / 40% JP Morgan Global Government Bond Index

Global Equity Fund

Performance fee paid into Reserve (12 months ending {{(fees.effectiveDate | oadate) || 'N/A'}})

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Fee paid to Orbis from the Reserve (12 months ending 30 November 2017)

0.60%

Amount in Reserve available for refunds (as at 30 November 2017)

2.33% of NAV

Average performance fee paid since fund launch (as at 30 November 2017)

1.45%

Average performance fee paid (3 years ending 30 November 2017)

1.70%

Global Balanced Fund

Performance fee paid into Reserve (12 months ending {{(fees.effectiveDate | oadate) || 'N/A'}})

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Fee paid to Orbis from the Reserve (12 months ending 30 November 2017)

0.86%

Amount in Reserve available for refunds (as at 30 November 2017)

3.11% of NAV

Average performance fee paid since fund launch (as at 30 November 2017)

1.56%

Average performance fee paid (3 years ending 30 November 2017)

1.87%

How Refunds Work

Half of the fund's outperformance against its benchmark is taken as a fee. But, equally, half of any underperformance in relation to the benchmark is also paid as a refund. This helps cushion you during periods of underperformance.

Interested in finding out more about our funds?

See our Global Equity Fund
See our Global Balanced Fund

Global Equity Fund Global Balanced Fund
Fees applied Our fees vary because they are based on performance. Figures here apply to the 12 months ended 30 June 2017.
Entry/ exit chargesWe don’t apply a charge on the purchase or sale of investments. 0% 0%
Annual Management Charge (AMC)*We don't charge a fixed management fee. 0% 0%
Operating expenses*We cover these costs rather than charging them to the fund (up to 0.1% of NAV or £1m per annum). 0% 0%
Performance feesA fee amounting to 50% of benchmark outperformance is payable. Equally, 50% of benchmark underperformance is refunded back to fund. Details are available below. 2.55% 3.70%
Trading costs 0.14% 0.12%
Total cost 2.69% 3.82%
Other related information
Portfolio turnover 64% 59%

Performance fee details

When the fund underperforms its benchmark, this reserve is used to issue refunds at the same rate. As such, half of the underperformance is refunded back to the fund.

The reserve is also used to pay the fund manager a fee. This "draw" is capped at 1/3 of the value of the reserve. The fee is calculated and paid daily, but the rate is annualised.

Furthermore, the draw is capped at an annualised rate of 2.5% of the value of the Standard share class of the fund. This limits the draw when the reserve is large compared to the size of the fund.

The draw will continue as long as there is money in the reserve, regardless of whether the fund is out- or underperforming.

Because the reserve applies to the whole fund, individual investors may benefit from it to different degrees, depending on when they invest or withdraw their money.

Fee Simulator

This fee simulator provides a useful tool to talk your clients through our fee model:

When we beat the benchmark, 50% of the outperformance is paid into a reserve, from which we take our fee.

And when the benchmark beats us, refunds are issued at the same 50% rate from the reserve. So we share the good times and the bad.

Try this tool to see our fee in action.

The benchmark value dropped, but not your investment so the fee is half the outperformance. After fees, you may have the same or less than your original investment but have fared better than the market as a whole.

We didn't outperform the benchmark, so no fee.

We beat the benchmark so the fee is half the outperformance. Fewer than one in eight funds outperformed their benchmarks by more than 5% (annualised over 5 years to the end of 2015). So, it’s not an easy thing to do. Source: Lipper for IM

We didn't outperform the benchmark, so no fee. However, refunds are due.

The value of your investment decreased but by less than the benchmark, so you pay a fee of half the outperformance.

Your investment decreased in value and we didn't beat the benchmark, so no fee. However, refunds are due.

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Fund return

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Benchmark return

Relative performance

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Fee charged

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Your fund value

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The value of your investments may go down as well as up, so you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results.

Our Fees in the News

The Evidence-Based Investor
Is "pay for performance" the future for fund fees?

Dan Brocklebank, director at Orbis Investments, in an interview brings attention to lack of transparency in asset management, how the Orbis fee model works and his hopes for the future where more active managers move towards these sorts of fee models.

Read Article
FT Adviser
Beware ‘the lower, the better’ mindset; investors should focus on other facts

Dan Brocklebank, director at Orbis Investments, challenges the behaviour of investors who seek out fund managers offering lower fees, presuming that it is going to be better for them in the long run. He points out that if investors consider other fee structures, it may be more rewarding in the long run.

Read Article
Professional Adviser
Time for asset managers to feel their share of the pain

Dan Brocklebank, director at Orbis Investments, argues that investors deserve better fee structures. These structures should ensure a better alignment of interest between investors and their fund managers and ensure managers are entirely focused on delivering value for money for their clients.

Read Article