Orbis Investment Management Limited
Who owns Orbis Investment Management Limited?
Orbis Investment Management Limited is indirectly owned by executives of Orbis and trusts which are held for the benefit of the executives of Orbis and their families.
How long has Orbis Investment Management Limited been managing mutual funds?
The first Orbis funds were launched on 1 January 1990.
Is Orbis a "value" manager?
Our approach is to identify equities with prices that are well below what we perceive to be the intrinsic value of the company. This results in a value orientation, however we do not limit our selected equities to only those that would be defined as value stocks based on their current financial ratios. This is because we seek companies with attractive growth prospects and our expectations of such growth meaningfully affect our assessment of a company's intrinsic value.
Where is Orbis based?
All portfolio management for the Orbis funds is conducted by a team based in Bermuda. The Bermuda office is also responsible for all trading and administration, and for investment research. The Bermuda portfolio management team is further supported by investment research provided by Orbis offices in London, England; Seoul, Korea; Sydney, Australia; San Francisco, United States of America and by Allan Gray Limited in Cape Town, South Africa.
Have there been any meaningful changes in the investment team?
No. There has been no change in the portfolio manager of the Orbis funds during the past five years.
Have there been any meaningful changes in the investment process?
No. We do, however, constantly and actively review our investment process as we attempt to identify our mistakes and learn from them.
What are your fees?
The fees for the Orbis equity funds are performance based. They typically range between 0.5% and 2.5% per annum of the net assets of each equity fund. Fees are accrued weekly and the level of fee, within this range, is based each week on the extent to which the fund's returns before fees have either exceeded or fallen behind those of that fund's specific benchmark index. Our absolute return funds, Orbis Optimal Funds and Orbis Leveraged Funds, indirectly bear the fees of the equity funds in which their assets are ultimately invested. Orbis Optimal (US$) Fund incurs an incremental performance based fee of up to 0.5% per annum whenever the Fund's share price is greater than its high of more than one year earlier and the Fund's trailing one-year return exceeds that of Bank Deposits plus 5 percentage points. Orbis Leveraged Funds pay no direct management fee.
Orbis Optimal SA Fund incurs a performance related fee of 20% in respect of the performance of each class of share relative to that of its Performance Fee Hurdle Rate (an independently published rate of return established as the rate of return for that class of share above which performance fees start to accrue). The performance of each class of share’s gross return relative to its Performance Fee Hurdle Rate is tracked using a relative performance index. On each Dealing Day when a Performance Fee is paid a "High Water Mark" is set for that class as the level of the relative performance index for that Dealing Day. In the event of relative underperformance the performance fee will not again accrue for that class of share until the next Dealing Day when the relative performance index exceeds the high water mark for that class.
Do the principals of Orbis have their own money invested in the Orbis funds?
Yes, the majority of the financial wealth of the key executives of Orbis is invested in the Orbis funds. Just as we prefer to buy companies in which management have a significant stake of their own wealth, we also believe that fund managers do a better job when their personal assets are pooled with those of their clients.
The Orbis Funds
Are the Orbis funds regulated?
Orbis offshore funds, with the exception of the Orbis SICAV funds, are regulated by the Bermuda Monetary Authority. Orbis SICAV is regulated by the Commission de Surveillance du Secteur Financier, Luxembourg.
Is there an investor protection scheme?
There is no investor protection scheme that applies to the Orbis funds.
Are these UCITS funds?
Orbis SICAV is a UCITS fund (a UCITS fund must be formed in a European jurisdiction and must apply certain investment restrictions). The other Orbis funds are not classified as UCITS.
Are there restrictions as to who can invest in the Orbis funds?
Yes. Orbis does not permit investments by US persons in its offshore funds. Furthermore, a number of jurisdictions do not permit or punitively tax investments in funds that are not specifically registered for distribution in that jurisdiction. Since this may include the Orbis funds, we recommend that investors seek advice from their own professional advisors on the possible tax consequences of their transacting in or holding shares in the Orbis funds under the laws of their countries of citizenship, residence or domicile.
Can US persons invest in the Orbis funds?
The Orbis offshore funds do not accept investment from US persons.
What funds do you offer?
Orbis offers a range of mutual funds which are briefly described on the Orbis website: click here to view.
Can I register shares in the name of a Trust?
Individuals or corporations that are investing in their capacity as trustees of a trust must register their investment in their own individual or corporate name. They may include as part of the registered name reference to the capacity in which they are acting such as "as trustees of the ABC Trust". However the persons in whose name the shares are registered will be the only persons recognised as the registered owners.
Can I add someone as a joint owner and not require them to co-sign transaction requests?
Yes. To do this, the joint owners must deliver to Citigroup a properly executed power of attorney or joint mandate authorising and specifying an alternative basis of signing. Without this, all joint owners must sign both the Application and Switch Form and any instructions to transfer or redeem the shares. Please see 'Where do I send subscription documents?' for the contact details for Citigroup.
What happens to my shares in the event of my death?
In the event of the death of the registered owner, Citigroup will re-register the shares and adjust its record of authorised signatories on receipt of the death certificate or a certified copy thereof and any other supporting documentation that may be required. If a joint owner dies, the remaining joint owner(s) will be the only persons recognised as having any title to the relevant shares.
Who is the Portfolio Manager of my fund?
The Orbis investment decision making process is team based. This means that no one person in the group is solely responsible for management of your funds. William Gray is the portfolio manager for all the Orbis offshore funds. As portfolio manager, his role is to construct each fund's portfolio using the recommendations provided by research advisory teams located in Bermuda; London, England; Seoul, Korea; Sydney, Australia; San Francisco, United States of America and Cape Town, South Africa.
Do the Orbis funds pay dividends?
It is anticipated that most of the total returns of the Orbis funds will be earned from capital appreciation on their investments rather than from dividends or other income. As a result, investors should expect that in most years, after deduction of a fund's expenses, the fund might not have any net income available for dividends. However, in years in which a fund earned net income and its gross income was in excess of 1% of the funds' net asset value, the funds intend to distribute their net income to members. Such was the case with the Orbis Africa Equity (Rand) Fund, which distributed almost all its 2006 net income as a dividend on 15 February 2007.
I need regular income from my investment, what should I do?
Investors who require a regular stream of income from their investment can take advantage of the funds' weekly dealing and absence of transaction fees to sell shares in the amounts and at the times that are required. Thus the amount of cash flow required from the investment can be tailored to each investor's requirements.
Can I regularly be sent a copy of the funds' reports?
Yes. You may sign-up to Portfolio Services which will enable you to receive regular reports automatically by email. Additionally you may request hard copies to be sent to your specified address. Documents that are specific to the investor such as a statement of holdings will only be sent to addresses which are authorised in writing by the registered member.
Do you send out statements?
We will send out a statement of holdings to any registered member upon request. The funds do not issue statements of holdings on a repetitive basis unless specifically requested.
Transactions in the Orbis Funds
Is there a bid offer spread?
No. Except for Orbis' Australian domiciled unit trusts, all purchases and sales of shares in the Orbis offshore funds are priced at the net asset value per share of the respective Orbis fund on the Dealing Day.
Do the funds trade at a premium or discount to their net asset value?
No. All purchases and sales of shares are priced at the net asset value per share of the respective fund on the Dealing Day.
When can I transact in the funds?
The Orbis funds deal weekly on Thursdays. Transfers may be effected on any week day.
Can I send you my instructions by facsimile?
Yes, however, this must be followed up by the original instruction and your instruction will not be processed until the original has been received by Citigroup. You may elect to sign the 'Communications Agreement' which will allow you to transact by fax without having to provide an original. Instructions sent by facsimile will only be accepted if sent to the fax number detailed below. The investor bears the risk of non-receipt of any instructions sent by facsimile.
The 'Communications Agreement' can be downloaded here and should be signed by the authorised signatory(ies) and sent in original form to:
Attention: The Orbis Service Team
Citigroup Fund Services Canada, Inc.
2920 Matheson Blvd. East
Mississauga, Ontario
Canada L4W 5J4
Email:orbisclientservice@citi.com (please note for queries only and not for sending transaction forms)
Telephone:+1 (905) 214 8251
+1 800 488 41377 or +00 800 488 41377 (both Toll Free)
Fax:+1 (905) 214 8252
+1 800 488 41655 or +00 800 488 41655 (both Toll Free)
What are the funds' dealing charges?
The Orbis offshore funds are no load funds. With the sole exception of very large transactions which are subject to our Substantial Transactions Policy, there is no front or back-end load payable on transactions in the Orbis offshore funds. There is no bid offer spread applied to the dealing price of the Orbis offshore funds.
When will you confirm the details of my transaction?
Once all complete and proper instructions have been received, confirmation of the transaction will normally be issued on the business day following the Dealing Day.
Can somebody else give instructions on my behalf?
Yes. If Citigroup has been provided with a properly executed power of attorney or other form of appropriate written authorisation, such persons may give instructions on your behalf. Please see 'Where do I send subscription documents?' for the contact details for Citigroup.
What is the difference between certificated and uncertificated shares?
All of the shares issued by the Orbis funds are registered. This means that the official record of ownership of shares in the Orbis funds is the share register maintained by Citigroup. In addition, you may request that certificates be issued. When certificated shares are redeemed, you must return your certificates (or at least certificates representing sufficient shares for the requested redemption) to Citigroup before the redemption will be processed. It will delay the redemption process if the share certificate is not delivered promptly or is lost.
If you have provided a signed original Communications Agreement to Citigroup, and sent by fax a copy of the required certificates, your redemption will be processed, however the proceeds will not be remitted until the original certificates are returned to Citigroup. In the case of partial redemptions, a certificate will be issued for the remaining shares.
What do I do if my share certificate is lost?
Holders of certificated shares who lose their certificate should contact Citigroup and complete a letter of indemnity that will allow Citigroup to either issue a new certificate or act in the absence of it.
Subscriptions
If I subscribe, how much of my subscription money actually gets invested on my behalf?
All of it. Since the Orbis offshore funds are no load funds that trade at single prices, all of the subscription money gets invested in the fund. In addition, subscription money that is received prior to the Dealing Day will earn interest which will be included in the subscription amount.
What is the minimum amount that I can invest?
The minimum initial subscription for any single Orbis offshore fund is US$50,000 or the equivalent in any Eligible Currency ('Eligible Currency' refers to the euro, US dollars, Canadian dollars, Australian dollars, British pounds, Japanese yen, Swiss francs and South African rand). This minimum applies to each Orbis offshore fund individually.
What is the minimum amount for an additional subscription?
Once an investor has satisfied the minimum initial subscription amount, subsequent additions to his or her investment may be made in amounts as little as US$1,000 or its equivalent.
Is there an initial charge payable on subscriptions?
No. With the sole exception of very large transactions which are subject to our Substantial Transactions Policy, there is no initial charge or front end load payable on subscriptions to the Orbis offshore funds.
What documentation do I need to invest?
Investors need to provide Citigroup with an Application and Switch Form, a copy of which may be obtained by clicking here. In addition, Citigroup may require corporations to provide additional documents such as a memorandum of association and signing authorities or relevant mandates. Individuals may be required to provide copies of identification documents. Please see 'Where do I send subscription documents?' for the contact details for Citigroup.
Where do I send the subscription money?
The amount being subscribed should be remitted to Citigroup by electronic bank transfer. For convenience, information and guidance on sending subscription monies are provided with the Application and Switch Form and may be downloaded here. Please see 'Where do I send subscription documents?' for the contact details for Citigroup.
Where do I send the subscription documents?
Subscription documentation should be sent to Citigroup
Attention: The Orbis Service Team
Citigroup Fund Services Canada, Inc.
2920 Matheson Blvd. East
Mississauga, Ontario
Canada L4W 5J4
Email:orbisclientservice@citi.com (please note for queries only and not for sending transaction forms)
Telephone:+1 (905) 214 8251
+1 800 488 41377 or +00 800 488 41377 (both Toll Free)
Fax:+1 (905) 214 8252
+1 800 488 41655 or +00 800 488 41655 (both Toll Free)
Please refer to the item 'Can I send you my instructions by facsimile?'
What is the deadline for subscriptions?
For all the funds other than the Orbis SICAV funds, a properly completed Application and Switch Form along with the corresponding payment must be received by Citigroup by 5:00 p.m. Bermuda time on a Thursday Dealing Day for a subscription to be considered for that day. In order for an application to be considered acceptable for subscription on a Thursday Dealing Day for the Orbis SICAV funds (i.e. the Orbis Japan Equity (Yen) Fund), a correctly completed Application Form together with the requisite payment confirmation must be received by Citigroup by 10:30 p.m. Luxembourg time on that Dealing Day (9:30 pm on the two Dealing Days immediately before Luxembourg adopts daylight savings time). For convenience, information and guidance on sending subscription monies are provided with the Application and Switch Form and may be downloaded here. Please see 'Where do I send subscription documents?' for the contact details for Citigroup and 'Can I send you my instructions by facsimile?'
Can I buy shares through my broker or advisor?
Yes. Your broker or advisor can either complete the Application and Switch Form in your name on your behalf or can subscribe in its name as a nominee for you. In the former case, you will be required to sign the form and will be considered the registered owner of the shares. In the latter case, the broker or advisor will be considered by Citigroup to be the owner of the shares. On request, Orbis will forward fund documentation to your broker or advisor. The Orbis offshore funds are no load funds, which may require some brokers or advisors to charge you a fee since they will not receive any commission from Orbis to cover their costs.
What is the best way to send my subscription payment?
Subscription payments must be sent by electronic bank transfer. Citigroup is not permitted to accept cash payments or bank drafts. For convenience, information and guidance on sending subscription monies are provided with the Application and Switch Form and may be downloaded here.
What currency should I remit my subscription amount in?
You may send your subscription amount in any Eligible Currency ('Eligible Currency' refers to the euro, US dollars, Canadian dollars, Australian dollars, British pounds, Japanese yen, Swiss francs and South African rand). If necessary, it will be converted on your behalf by Citigroup to the relevant fund's pricing currency following receipt of a properly completed Application and Switch Form and any required supporting documents. These foreign exchange conversions are effected at highly competitive exchange rates.
Redemptions
What is the deadline for redemptions?
For all the funds other than the Orbis SICAV funds, Citigroup must receive a properly completed Redemption Form or the equivalent by noon Bermuda time on a Thursday Dealing Day in order for the redemption to be accepted on that day. Requests received after this deadline will be considered for the next Dealing Day. Orbis SICAV shareholders whose redemption instructions are accepted will have their shares redeemed on the next Thursday Dealing Day provided that the instructions are received by Citigroup not later than 10:30 pm Luxembourg time (9:30 pm on the two Dealing Days immediately before Luxembourg adopts daylight savings time) on that Thursday Dealing Day. Please see 'Can I send you my instructions by facsimile?' and 'Where do I send the subscription documents?'
Are there any fees, such as a back-end load, payable when Orbis offshore fund shares are sold?
No. With the sole exception of very large transactions which are subject to our Substantial Transactions Policy, there is no back-end load or any other fee payable on redemption.
What is the minimum amount for a redemption?
Redemptions must be in the amount of at least US$1,000 (or its equivalent), but do not need to be in multiples of US$1,000.
When will I receive the redemption proceeds?
Redemption proceeds will normally be remitted within five business days after the relevant Dealing Day as long as properly completed documentation has been received.
Orbis Fund Prices and Performance
Where are the funds' latest returns available?
The funds' latest returns are available on the Orbis website: click here to view.
Where can I find the funds' prices?
The funds' prices are available on the Orbis website www.orbisfunds.com, by telephone + 1 (441) 296 3002, in leading financial newspapers including The Financial Times of London and The International Herald Tribune, from the Reuters page "ORBIS" and from Bloomberg. Click here to view.
Who calculates the funds' prices?
The funds' published prices are calculated by Citigroup.
How are the values of the securities which are held in each fund determined?
Citigroup independently determines the value of the securities held by each fund. In the case of equities, this is normally based on the last reported sale price as of 5:30 p.m. Bermuda time (normally 10:30 p.m. Luxembourg time) on the valuation day.
Do the returns include dividends and income?
The funds' prices reflect all income, including dividends and expenses, including manager's fees. In the event that a fund pays a dividend, investors should be careful to ensure that this is reflected in their calculations of total return.
General
Do the Funds fall within the scope of the European Union Savings Directive?
Our assessment is that all of the Orbis Funds are effectively exempt from the European Union Savings Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments. This means that payments from the Orbis Funds, including dividends and redemption proceeds, to residents of the European Union should not be subject to having tax withheld by paying agents under the Directive.
Do the Orbis funds have UK distributor status?
The following Orbis Funds have been certified by HM Revenue & Customs (HRC) as distributing funds for each year from inception through 2006: Orbis Global Equity Fund Limited, Orbis SICAV-Japan Equity Fund (Yen and Euro classes), Orbis Japan Equity (US$) Fund Limited, Orbis Africa Equity (Rand) Fund Limited, Orbis SICAV-Japan Core Equity Fund, Orbis SICAV-Global Equity Fund (investor share class), Orbis Optimal (US$) Fund Limited, Orbis Optimal (Euro) Fund and Orbis Leveraged (US$) Fund Limited, Orbis Optimal SA Fund (US$ and Euro classes) and Orbis Leveraged (Euro) Fund. For more information go to: http://www.hmrc.gov.uk/offshorefunds/dist_fundlist.htm. Certification is granted retrospectively, therefore there can be no assurance that the Orbis Funds will be certified as distributing funds for fiscal 2007 or for future accounting periods.
What is distributor status?
Distributor status is only relevant to investors who are subject to United Kingdom tax. These investors should make their tax advisors or accountants aware that this favourable status has been granted to the Orbis offshore funds through 2006. The consequence for UK residents who are UK domiciled of investing in a fund that has not received distributor status during any period in which have held their investment is that any capital growth realised on their investment will be taxed as income.
Do the Orbis funds have a derivatives risk statement?
Australian investors who are superannuation funds regulated by the Australian Prudential Regulatory Authority are required to produce a derivates risk statement, and rely upon managers of the funds they invest in to in turn provide a derivates risk statement covering those funds. Orbis has produced a derivates risk statement.
What is a Standard & Poor's Fund Research rating?
A Standard & Poor's Fund Research rating is Standard & Poor's current opinion of a fund's adherence to consistent investment processes combined with the level of volatility adjusted returns. In Standard & Poor's opinion, funds which adhere to disciplined processes and exhibit strong management, are more likely, over the long run, to provide consistent, above average volatility adjusted returns, relative to the funds in the same sector. Funds rated in the frAAA to frA categories demonstrate an ability to provide above average performance along with a strong ability to adhere to a consistent investment process.
Whom do I contact to invest in the Orbis funds?
To invest in the Orbis offshore funds, please contact Citigroup
Attention: The Orbis Service Team
Citigroup Fund Services Canada, Inc.
2920 Matheson Blvd. East
Mississauga, Ontario
Canada L4W 5J4
Email:orbisclientservice@citi.com (please note for queries only and not for sending transaction forms)
Telephone:+1 (905) 214 8251
+1 800 488 41377 or +00 800 488 41377 (both Toll Free)
Fax:+1 (905) 214 8252
+1 800 488 41655 or +00 800 488 41655 (both Toll Free)
or contact Orbis directly:
Attention: Investor Services
Orbis Investment Management Limited
LPG Building
34 Bermudiana Road
Hamilton HM11
Bermuda
Email:clientservice@orbisfunds.com (please note for queries only)
Telephone:+1 (441) 296 3000
Fax:+1 (441) 296 3001
What is the role of Citigroup?
Orbis funds have appointed various entities of Citigroup as service providers. Here we refer to these entities simply as "Citigroup". The function each Citigroup entity carries out for the Orbis funds is described in detail in the fund's Prospectus.
What is Bermuda time and Luxembourg time?
Bermuda time is one hour ahead of U.S. Eastern Time. For example, 5:00 p.m. Bermuda time is 4:00 p.m. in New York City. Luxembourg time is normally five hours ahead of Bermuda time. However, for two weeks after daylight saving time is adopted in Bermuda, it is six hours ahead.