Feel connected to the companies you invest in.
Simplicity has never been more valuable. Franchise Partners can connect you to companies you already know and love.
Franchise Partners selects only around 30 dominant global companies that offer products and services consumers treasure. They seek businesses that are highly cash generative with repeatable consumer demand and that have withstood competitive pressures over time.
Get access to a collection of some of the world's most successful companies, connecting you to the unique products and experiences that generations of consumers treasure.
The world of investing is often detached from daily life – not so with Franchise Partners. Knowingly or not, you are likely to interact with many of the companies in the portfolio every single day.
Examples of stocks held by the IFP Global Franchise Fund*:
Nestlé - Food and drink products
Estée Lauder Cosmetics - Make-up, skincare and fragrances
Richemont - Luxury goods and jewellery
Johnson & Johnson - Pharmaceutical and self-care products
Nintendo - Video games and consoles
*Held by the IFP Global Franchise Fund as at 31 December 2023. Nothing in this communication constitutes a recommendation to buy, sell or hold any particular security or instrument.
Building a select portfolio of leading global companies with hard to replicate intangible assets, Franchise Partners has delivered defensive outcomes through the Global Financial Crisis and the 2020 COVID-19 market drawdown.
Fund performance versus the MSCI World ex Australia Index in all market drawdowns greater than 10% since Fund inception (AUD, net of fees)
For the current Fund performance over standardised periods, visit the product page.
Past performance is not a reliable indicator of future performance.
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is 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. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any 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 any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
There can be a lot of smoke and mirrors in this business. But Franchise Partners has a clear focus and formula that's both uncompromising and unambiguous.
Franchise Partners’ ‘formula’ is all about balancing quality and value when investing.
On one hand, Franchise Partners seeks high quality companies with resilient business models, high returns on capital, significant free cash flows, and a sustainable competitive advantage, that can survive and thrive across market cycles. Return on capital employed is a key measure of quality.
On the other hand, Franchise Partners seeks to ensure that any investment is at a compelling valuation, to avoid the risk of overpaying for this quality. Similarly, once held, a rise in valuation above their threshold triggers a sale. Free cash flow yield is Franchise Partners’ key measure of value.
Few companies meet Franchise Partners’ quality criteria, fewer still meet their value criteria.
Return on capital employed: the profitability of a company relative to the amount of capital in use.
Free cash flow yield: the operating cash flow of a company (after capital expenditure, interest, taxes and other claims) as a percentage of market capitalisation; a higher yield represents a lower valuation, a lower yield represents a higher valuation.
Please note: the data shown above is not reflective of the IFP Global Franchise Fund II which may differ significantly and may be lower than what is shown above.
Source: Franchise Partners, MSCI, as at 31 December 2023.
1Ratios exclude real estate and financial stocks with the exception of Aon, Intercontinental Exchange, S&P Global and Zillow. Ratios apply to the Global Franchise Representative Account; Franchise Partners manage all portfolios in the same manner and thus ratios are consistent with the IFP Global Franchise Fund.
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is 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. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any 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 any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
Listen to two of Franchise Partners’ founding partners, Jayson Vowles and Michael Allison, talk about their guiding principles and how they seek to build a durable partnership with their clients.
Running time: 3.22 min
Balancing quality and value
Franchise Partners founding partner and co-lead investor, Michael Allison, reviews the importance of balancing quality and value to help compound capital over a full market cycle.
Running time: 4:11 min
A disciplined investment approach
Hear Richard Crosthwaite, Partner at Franchise Partners, share insights into the firm’s investment approach.
Running time: 3:47 min
Why franchise investing?
Jayson Vowles, founding partner and co-lead investor, at Franchise Partners discusses the appeal of franchise investing, what constitutes a dominant intangible asset, and how the team’s investment tools have evolved over time.
Running time: 4:24 min
What makes a great franchise?
Michael Allison, founding partner and co-lead investor, shares how Franchise Partners defines a great franchise.
Running time: 2:08 min
Explore related funds
Target investors
The IFP Global Franchise Fund and IFP Global Franchise Fund II are designed for consumers who:
- are seeking capital growth and income distribution
- are intending to use the Fund as a core component, minor allocation or satellite allocation within a portfolio
- have a minimum investment timeframe of seven years
- have a high or very high risk/return profile for that portion of their investment portfolio, and
- require the ability to have access to capital within one week of request.
The Target Market Determination (TMD), available at macquarie.com/mam/tmd, includes a description of the class of consumers for whom the Fund is likely to be consistent with their objectives, financial situation and needs.
IFP Global Franchise Fund and IFP Global Franchise Fund II
All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and unit price variability over the short or long term). The risks of investing in this Fund include:
Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price, by material amounts over short periods.
Market risk: The investments that the Fund has exposure to are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time. Poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Fund.
Concentration risk: The Fund may have exposure to a small number of key investments. This may result in the returns of the Fund being dependent on the returns of individual companies and industry sectors which may increase the volatility of the Fund’s unit price, and increase the risk of poor performance.
More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.
Download the Product Disclosure Statement
- Product Disclosure Statement - IFP Global Franchise Fund
- Product Disclosure Statement - IFP Global Franchise Fund (Hedged)
- Product Disclosure Statement - IFP Global Franchise Fund II
- Product Disclosure Statement - IFP Global Franchise Fund II (Hedged)
- Information Booklet
- Target Market Determination - IFP Global Franchise Fund
- Target Market Determination - IFP Global Franchise Fund (Hedged)
- Target Market Determination - IFP Global Franchise Fund II
- Target Market Determination - IFP Global Franchise Fund II (Hedged)
This information has been prepared by Macquarie Investment Management Australia Limited (ABN 55 092 552 611 AFSL 238321), the issuer and responsible entity of the Fund(s) referred to above. This is general information only and does not take account of the investment objectives, financial situation or needs of any person. It should not be relied upon in determining whether to invest in a Fund. In deciding whether to acquire or continue to hold an investment in a Fund, an investor should consider the Fund's product disclosure statement. The product disclosure statement is available on our website at macquarie.com/mam/pds or by contacting us on 1800 814 523. This information is intended for recipients in Australia only.