Orbis Investments

[foiled]

Can’t see a thread about Orbis Investments, and wondered if anyone had invested with them or had strong views or opinions on them?

Their unique selling point, is that fees depend on them outperforming the market, with no fees if they underperform. Only seem to have 2 different isa funds, so very limited choice.

I guess if they outperform one year, you overpay charges, which might not be balanced out if they underperform the following year.
https://www.orbis.com/uk/individual/isas/stocks-sh...
Thoughts?

[anonymous-user]

Unfortunately they also take half of your "upside" into a reserve pool.

Maximum fee of 2.5% is very high indeed. (Have a look at the Intelligent Money thread - top line on this PH finance forum.)

Another clear case of - "Run Forrest, run!" in my opinion.

[Derek Chevalier]

foiled said:

Can’t see a thread about Orbis Investments, and wondered if anyone had invested with them or had strong views or opinions on them?

Their unique selling point, is that fees depend on them outperforming the market, with no fees if they underperform. Only seem to have 2 different isa funds, so very limited choice.

I guess if they outperform one year, you overpay charges, which might not be balanced out if they underperform the following year.
https://www.orbis.com/uk/individual/isas/stocks-sh...
Thoughts?

Before I looked at their returns, my thoughts were as follows:

a). The market goes up more years than it falls
b). That being the case, it makes sense to take on more risk than the benchmark to give you a better chance of beating the benchmark when the market is rising and claiming your fees (and who cares if you undershoot in falling year as it's less common).


If you look at the performance of their funds

https://www.orbis.com/uk/individual/funds/global-e...

-12.5% fall in 2018 vs -3% for MSCI World Index


Even their balanced fund undershot the global benchmark: -7.5% in 2018

https://www.orbis.com/uk/individual/funds/global-b...


You have to ask yourself if you are being compensated (in the form of greater returns) by taking on (what appears to be) far greater risk that the benchmark.