The Franchise investment approach is designed to deliver attractive long-term returns while focusing on the absolute risks inherent in equity investment.
It is founded on the belief that a concentrated portfolio of exceptionally high-quality companies, whose primary competitive advantage is supported by a dominant intangible asset, will earn attractive long-term returns with less than average volatility. This is particularly true when those investments are selected with an absolute value bias.
The Franchise Approach
Hear Jayson Vowles, founding partner and investor, discuss the key foundations of our Franchise investment approach and our commitment to continuous development.
The Franchise approach is specifically designed to capture the long-term wealth creation of businesses while minimising commercial and valuation risk. It is this disciplined approach that has allowed us to generate attractive long-term returns for our clients with a strong capital preservation bias.
Hear founding partner and investor, Michael Allison, review the importance of balancing quality and value in order to help clients compound their capital over a full market cycle.
ESG Integration
We aim to invest in companies with durable franchises and to be responsible long-term owners of those businesses. We believe the integration of ESG considerations into the investment process and the undertaking of stewardship activities helps us in this goal.
Hear from Lottie Meggitt, our ESG analyst, on why we believe we have the right structure to effectively integrate ESG considerations into our clients’ portfolios.
Climate Engagement
Franchise portfolios have a structurally low carbon footprint1 and the companies in the portfolios provide better disclosure and emissions reduction ambitions than the broader market2. We engage with portfolio companies on their climate disclosure and management to support our goal of generating attractive long-term, risk-adjusted returns for our clients.
Issued by Independent Franchise Partners, LLP, authorised and regulated by the Financial Conduct Authority in the United Kingdom. Independent Franchise Partners, LLP is registered with the United States Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply that Independent Franchise Partners, LLP possesses a certain level of skill or training. The information displayed on this website is for eligible counterparties and professional clients only and is not for retail clients. The services described may not be available to you, or suitable for you. Nothing in this document constitutes investment advice nor does it represent any offer to provide services to buy or sell securities of any kind. Investments in the portfolios managed by Independent Franchise Partners, LLP may fall as well as rise and investors may not be able to recover their invested capital.
1As at 31 December 2021, Scope 1, 2 and 3 emissions of the Global, Global II and US Franchise portfolios respectively total 43, 42 and 45 tons of CO2 emitted / $mn invested (based on Carbon footprint methodology). This compares to 118 tons for the MSCI World Index and 152 tons for the Russell 1000 Value Index.
2As at 31 December 2021, 82% of the Global Franchise portfolios and 68% of the US Franchise portfolio disclosed to the Carbon Disclosure Project (CDP). Of these, 46% of Global portfolio companies and 36% of US portfolio companies were A or A- rated. CDP disclosure for the MSCI World and Russell 1000 Value indices were 71% and 50% respectively. Only 24% of MSCI World Index and 9% of Russell 1000 Value Index companies had an A or A- CDP score. 45% of the Global Franchise portfolios and 32% of the US Franchise portfolio had a science-based emission reduction target, as approved by the Science Based Targets Initiative (SBTI). Only 25% of MSCI World Index and 13% of Russell 1000 Value Index companies had an SBTI target.
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