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Retirement Fund Conservative Equity

Foord's best investment view for discretionary retirement fund portfolios with medium-term investment horizons.

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) with the additional restriction of a maximum 60% in equities. These balanced portfolios reflect Foord’s best investment view for discretionary retirement fund portfolios in terms of asset allocation and security selection, subject to the constraint of a maximum 60% in equities. This strategy is suitable for investors with a maximum investment horizon of  three to five years. The investment objective is to exceed the South African inflation rate by 4% per annum over rolling three-year periods at the lowest possible risk.

STRATEGY

In retirement savings, certain circumstances may require a slightly more conservative approach than is typical of the default global balanced approach. Examples include members who might be transitioning into lower risk portfolios and who have a lower tolerance for variability of returns in the medium term. For these funds, a more conservative balanced portfolio that aims to achieve returns that maintain purchasing power while having a low probability of negative returns in any one year may be appropriate. Given the conservative nature, this strategy has the unique feature of no management fee being levied should returns over 12 months be negative in absolute terms.

Historic investment returns
Years Composite Return % Benchmark* Return %
1 Year 6.4 8.7
3 Years 6.1 8.3
5 Years 5.5 9.3
Since Inception 01 January 2014 6.4 9.3

* Benchmark: CPI + 4%

Performance History

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Performance Overview

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