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Frequently Asked Questions

What is the difference between Intrinsic Value Investors (IVI) LLP and the IVI European Fund?

Intrinsic Value Investors (IVI) LLP is the London-based manager of the IVI European Fund ("the Fund"). For more detail on the structure of the Fund, please refer to the Investor Information Centre.

What is the Fund's investment objective?

The Fund's investment objective is the preservation and long-term growth of its clients' capital.

What does the Fund invest in?

The Fund's principal holdings are Pan-European equities (i.e. shares) and cash. It does also however have the flexibility to invest in a number of other assets including government and corporate bonds and derivatives. For more detail on the Fund's investment remit, please refer to its prospectus in the Investor Information Centre.

What is the Fund's investment style?

IVI employs a fundamental and bottom-up approach to the selection of the Fund's investments. For more detail on this process, please refer to the Philosophy & Process page of this website.

What is the Fund's target holding period?

When evaluating investment opportunities, IVI adopts a 3 to 5 year time horizon.

What is the Fund's benchmark?

The MSCI Europe Index is used as the Fund's reference benchmark. The Fund does not however track this index and instead focuses on individual companies that may or may not be among its constituents. It is therefore reasonable to expect the Fund to deviate substantially from the reference benchmark in its composition, risk and returns.

How does IVI manage the Fund's risk?

Since we are not attempting to replicate the performance of any given index, the risk that we are concerned with at IVI is the risk of a permanent loss of our clients' capital. Whilst we do monitor levels of portfolio concentration in this regard, our main tool of risk minimisation is our fundamental investment approach. It is, after all, our aim whenever making an investment to buy in at levels far enough below intrinsic value to leave us a margin of safety should the company (or asset class) in question encounter adverse developments for any reason or should our research prove in some way flawed.

What is the Fund's target clientele?

The Fund should interest any investor who prioritises absolute returns and is prepared to adopt a long-term approach to the investment of their capital.

How is the Fund different from other managed funds that I could invest in?

IVI believes that the Fund stands apart from its peers in the key areas of performance, fees, integrity and transparency. For further detail on these areas, please refer to the Core Principles and Philosophy & Process pages of this website.

How much does it cost to invest in the Fund?

The Fund charges a flat 1.10% annual management fee and always aims to minimise its total expense ratio (i.e. the management fee plus other overheads). No initial charges or performance fees are applied. As outlined in the Fund's prospectus, parties looking to trade the Fund's assets on a very short-term basis will also be subject to a 3% redemption fee.

What is the minimum amount that I can invest in the Fund?

In order to optimise the efficiency of IVI's management of Fund cashflows, initial investments from clients in the Euro class of shares must amount to at least €10,000 and subsequent investments must amount to at least €5,000. Likewise, initial investments from clients in the sterling class of shares must amount to at least £10,000 and subsequent investments must amount to at least £5,000.

Does the Fund pay dividends?

Holders of the Euro class of shares in the Fund do not receive any dividends with all income being accumulated within the net asset value. However, holders of the sterling class of shares in the Fund will receive an annual distribution each December. The default is to automatically reinvest distribution proceeds with shareholders receiving new shares. Alternatively, investors may elect to receive distributions as cash. For UK taxpayer efficiency purposes, both shares classes of the Fund have been approved by UK HM Revenue & Customs as “Reporting Funds” under the provisions of The Offshore Funds (Tax) Regulations 2009.

How long has the Fund been in existence?

Intrinsic Value Investors (IVI) LLP was incorporated in July 2005 and the Fund was launched on 24 February 2006.

How can I find the Fund's current price?

The Fund's share price is recorded daily in a number of financial newspapers across Europe and can be found on the Fund Price page of this website. It is also available at other sources such as FT.com and Bloomberg.

How can I stay up-to-date on the Fund's progress?

Parties interested in the Fund's progress should refer to the Fund Price and Investor Information Centre pages of this website. Investors in the Fund also receive quarterly, half-yearly and annual reports on its progress (which will also be posted in the Investor Information Centre).

Can I open a new account on the Fund and invest?

No. On 31 August 2007, the Board of Directors announced that the Fund was being closed to subscriptions from new investors. As such, State Street will now only accept trade instructions from existing investors. The Directors have reserved the right from time to time to open to new subscriptions either for a specific period or until they otherwise determine. During any such period, shares will be available for subscription. Should you wish to express an interest to open an account in the future, please let us know using the Contact Form.