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Retirement Fund Full Discretion

Foord’s best investment view for retirement fund portfolios.

OVERVIEW

These mandates invest in a mix of local and foreign asset classes and are managed to comply with the prudential requirements of the South African Pension Funds Act (Regulation 28). They are fully balanced portfolios reflecting Foord’s best investment view for discretionary retirement fund portfolios in terms of asset allocation and security selection, while typically maintaining an equity bias. The investment objective is to exceed the South African inflation rate by 5% per annum over any rolling five-year period at the lowest possible risk.

STRATEGY

When saving for retirement it is critical that the buying power of retirement savings is maintained. This means that the long-term returns achieved on the retirement fund portfolio must at the very least exceed inflation. In managing retirement portfolios, Foord focuses on achieving returns meaningfully in excess of inflation over rolling five to ten-year periods. The graph below reflects our success: the actual return achieved for investors over any rolling seven-year period has never dipped below the level of South African inflation. The buying power of capital was therefore protected. More importantly, in almost all cases since 1989, the returns achieved for investors have comfortably exceeded inflation plus 5% per annum.

Long-term real returns

Historic investment returns
Years Composite Return % Benchmark* Return %
1 Year 10.8 8.2
3 Years 11.1 12.2
5 Years 8.9 8.8
Since Inception 01 January 1984 17.8 14.3

* Benchmark: 55% ALSI, 9% MSCI, 6% CITI, 5% PROP, 20% ALBI, 5% STFCAD

Performance History

Insights

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Foord Asset Management

TEL: +27 (0)21 532 6988

FAX: +27 (0)21 532 6999

INFO@FOORD.CO.ZA