 | |
MS Global Franchise Portfolio | MSFAXMutual Fund | |
| Morgan Stanley Institutional Global Franchise Port | |
| Last update 2024-08-23 | 40 Stocks (1 new) |
| Value $2.73 Bil | Turnover 5 % |
| Portfolio Report | |
MS Global Franchise Portfolio Investing Philosophy
The team follows a distinct and disciplined investment process based on bottom-up stock selection, with sector, industry and stock weightings driven by the team's assessment of each stock's quality and valuation characteristics.
(1) Investable universe: Companies are screened based on financial metrics that the team believes are associated with strong franchise businesses. The key financial characteristic of these companies is that they enjoy sustainable, high unlevered return on invested capital (ROIC), which is generated by a combination of recurring revenues, high gross margins and low capital intensity. This combination helps support strong free cash flow generation, which, crucially, must be either reinvested at similarly high returns or distributed to shareholders.
(2) Security selection: The team looks for high-quality businesses with the following characteristics: difficult-to-duplicate intangible assets that protect the durability of the franchise; a sustainable, high ROIC on an unlevered basis; high gross margins and low capital intensity; a reliably recurring revenue stream; and financial strength and capable management. The team monitors signs of franchise abuse, including failing to reinvest capital in high ROIC businesses, preventing compounding by retaining excessive cash and earnings per share targets having precedence over ROIC, which rewards short-sighted behavior.
(1) Investable universe: Companies are screened based on financial metrics that the team believes are associated with strong franchise businesses. The key financial characteristic of these companies is that they enjoy sustainable, high unlevered return on invested capital (ROIC), which is generated by a combination of recurring revenues, high gross margins and low capital intensity. This combination helps support strong free cash flow generation, which, crucially, must be either reinvested at similarly high returns or distributed to shareholders.
(2) Security selection: The team looks for high-quality businesses with the following characteristics: difficult-to-duplicate intangible assets that protect the durability of the franchise; a sustainable, high ROIC on an unlevered basis; high gross margins and low capital intensity; a reliably recurring revenue stream; and financial strength and capable management. The team monitors signs of franchise abuse, including failing to reinvest capital in high ROIC businesses, preventing compounding by retaining excessive cash and earnings per share targets having precedence over ROIC, which rewards short-sighted behavior.
MS Global Franchise Portfolio Top Holdings of 2024-06-30
View Full List
| Ticker | | Company | Shares | Value ($1000) | Shares Change % | Weighting % | Trade Impact % | % of Shares outstanding | 3M Change % | YTD Change % | Market Cap $Mil | Industry |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT | Microsoft Corp | 541,505 | 242025.660 | -9.86% | 8.860 | -0.85% | 0.010 | +4.32% | +10.02% | 3059156.044 | Software | |
XTER:SAP | SAP SE | 925,719 | 185954.330 | -11.65% | 6.810 | -0.81% | 0.080 | +14.85% | +55.22% | 249398.605 | Software | |
V | Visa Inc | 612,522 | 160768.650 | -0.56% | 5.880 | -0.03% | 0.030 | +14.60% | +13.30% | 569477.114 | Credit Services | |
ACN | Accenture PLC | 458,612 | 139147.470 | -4.38% | 5.090 | -0.25% | 0.070 | +10.57% | +0.04% | 215881.378 | Software | |
ICE | Intercontinental Exchange Inc | 893,638 | 122330.110 | -4.88% | 4.480 | -0.22% | 0.160 | +6.39% | +24.07% | 90633.760 | Capital Markets | |
UNH | UnitedHealth Group Inc | 204,642 | 104215.980 | +11.71% | 3.810 | +0.40% | 0.020 | -0.16% | +8.97% | 521828.826 | Healthcare Plans | |
TMO | Thermo Fisher Scientific Inc | 173,812 | 96118.040 | -4.91% | 3.520 | -0.18% | 0.050 | -6.17% | +5.86% | 214502.324 | Medical Diagnostics & Research | |
BDX | Becton Dickinson & Co | 399,168 | 93289.550 | -4.88% | 3.410 | -0.17% | 0.140 | +1.06% | -1.49% | 68589.766 | Medical Devices & Instruments | |
AON | Aon PLC | 309,501 | 90863.300 | +4.06% | 3.330 | +0.13% | 0.140 | +13.65% | +27.76% | 79737.377 | Insurance | |
LSE:REL | RELX PLC | 1,953,913 | 89526.010 | -4.99% | 3.280 | -0.15% | 0.110 | +1.40% | +18.38% | 67182.420 | Business Services |
MS Global Franchise Portfolio's Historical Top Holdings Breakdowns
MS Global Franchise Portfolio's Top Stock Picks
View Full List
| Ticker | | Company | Date | Action | Impact % | Price Range | Price | Price Change from Avrg% | Comment | Current Shares | Share Change |
|---|---|---|---|---|---|---|---|---|---|---|---|
XAMS:HEIA | Heineken NV | 2024-06-30 | Reduce | -1.67% | 86.88 (€91.98) 96.7 | €74.46 | -19.05% | Reduce -80.22% | 124,865 | -506,396 | |
STZ | Constellation Brands Inc | 2024-06-30 | Add | +1.38% | 243.97 ($257.19) 268.34 | $237.15 | -7.79% | Add 129.74% | 259,405 | 146,491 | |
LSE:HLN | Haleon PLC | 2024-06-30 | Add | +1.17% | 3.2 (£3.27) 3.4 | £3.72 | 13.70% | Add 157.28% | 12,822,923 | 7,838,938 | |
PM | Philip Morris International Inc | 2024-06-30 | Reduce | -1.06% | 88.6 ($97.77) 104.24 | $132.19 | 35.21% | Reduce -38.21% | 548,766 | -339,386 | |
LSE:RKT | Reckitt Benckiser Group PLC | 2024-06-30 | Reduce | -0.86% | 41.1 (£43.99) 46.18 | £49.45 | 12.41% | Reduce -25.38% | 1,303,941 | -443,531 | |
MSFT | Microsoft Corp | 2024-06-30 | Reduce | -0.85% | 389.33 ($422.32) 452.85 | $411.46 | -2.57% | Reduce -9.86% | 541,505 | -59,251 | |
XTER:SAP | SAP SE | 2024-06-30 | Reduce | -0.81% | 165.8 (€175.38) 189.52 | €213.80 | 21.91% | Reduce -11.65% | 925,719 | -122,043 | |
DHR | Danaher Corp | 2024-06-30 | Reduce | -0.66% | 235.51 ($252.65) 267.98 | $250.07 | -1.02% | Reduce -25.23% | 230,234 | -77,694 | |
HOLX | Hologic Inc | 2024-06-30 | Add | +0.53% | 71.43 ($74.96) 78.41 | $78.80 | 5.12% | Add 127.25% | 350,666 | 196,359 | |
VLTO | Veralto Corp | 2024-06-30 | Sold Out | -0.50% | 86.58 ($95.63) 102.19 | $103.61 | 8.34% | Sold Out | 0 | -164,652 |
MS Global Franchise Portfolio Total Holding History ($B)
MS Global Franchise Portfolio's Asset Allocation
MS Global Franchise Portfolio Past Portfolios
| Portfolio Date | Number of Stocks | New Stocks | Total Value ($Mil) | Q/Q Turnover |
|---|---|---|---|---|
Top Ranked Articles
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MS Global Franchise Portfolio's Hypothetical Growth since 2024-06-30
MS Global Franchise Portfolio's Yearly Returns
| Year | Portfolio % | % | Excess Gain % |
|---|
MS Global Franchise Portfolio's Holdings Heat Map
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MS Global Franchise Portfolio's Holdings Bubble Chart
MS Global Franchise Portfolio News
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