Investments  

Orbis offers refundable fee on latest fund

Orbis offers refundable fee on latest fund

Orbis has launched another fund with a fee structure that is based solely on performance, whereby investors get a refund if the returns are poor. 

The Orbis Global Cautious is the third product the company has brought to market in the UK that has a performance fee based structure.

This means there is no annual management charge or other ongoing charge, just a fee if the fund out performs its benchmark.

If, following a year where the performance fee was paid, the fund then underperformed the benchmark for a year, some of the the previous year’s performance fee would be repaid. 

The new fund will invest in equities, bonds and commodities, with the aim of beating the benchmark, which is 30 per cent of the MSCI Global Index and 70 per cent of the JP Morgan Global Government Bond Index blended. 

The fund will be in the IA Total Return sector.    

The other two Orbis funds available to UK investors are a Global Equity fund, for those with a high tolerance for risk, and a Global Balanced fund for those with a medium tolerance for risk. 

Marcel Bradshaw, head of UK retail at Orbis Investments, said: “We are committed to serving intermediary clients in the UK. The expansion of our suite of funds helps meet rising demand from investors and advisers for a lower-risk, diversified product and we are pleased to be able to offer options to suit a range of risk appetites.

“In these volatile and increasingly uncertain times, the challenge of balancing risk and reward is more difficult than ever. Our Global Cautious strategy aims to help investors with a low tolerance for risk meet this challenge through our time-tested approach to security selection and risk management.”

Tom Sparke, investment director at GDIM, a discretionary fund management firm in Cambridge, said: “It makes sense for Orbis to add this strategy to their range of funds, to cater for the lower-risk end of the scale. I think their innovative approach to charging could work even better in a fund such as this where the returns are anticipated to be lower and therefore may be more difficult to show a net positive return.” 

david.thorpe@ft.com

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