OVERVIEW
The objective of this single-asset class strategy is to construct a globally diversified portfolio of quality companies bought at reasonable prices to achieve long-term US dollar returns with minimum risk of capital loss. History has shown that equity-only mandates typically provide the best long-term real returns – but they come with the greatest volatility of returns over shorter time horizons. The long-term outperformance target is 2 to 3% per annum in excess of the relevant benchmark after costs.
STRATEGY
Although the global equity strategy is relatively new, the strategy is managed according to the long-standing tried and tested Foord investment philosophy. Because Foord portfolios reflect a concentration on our very best long-term investment ideas, there can be prolonged periods of under-performance relative to the market index in the short to medium term. This has been a common feature of the performance patterns of Foord portfolios since inception in the early 1980s. Indeed, the highly regarded Foord International Fund suffered cumulative under-performance of almost 50% (relative to global equity indices) in the first three year’s of its existence. This was more than made however, over the longer-term as the full investment cycle played out and the dominant investment theses in the portfolio resulted in comfortable outperformance in the fullness of time. We believe that the Foord Global Equity Fund is indeed on a similar trajectory in this early part of its life cycle.
