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South African Equity

For long-term investors in JSE listed equities.

OVERVIEW

The objective of this single-asset class strategy is to construct a diversified portfolio of quality companies bought at reasonable prices to achieve long-term 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 3 to 5% per annum in excess of the relevant benchmark (SWIX, CAPI etc.) after costs.

STRATEGY

Foord’s investment focus is on absolute value investing in all mandates – that is, aiming to avoid permanent capital loss through a full investment cycle. This is more challenging in volatile, single-asset class mandates such as equity-only portfolios. However, risk of loss can be reduced substantially by: emphasising long-term investment (buy and hold); diversification of holdings across sectors, industries and companies; and investing at the right price in quality companies that are likely to be operating successfully for decades to come.

The graph shows rolling five-year performance for both Foord’s Equity composite and the ALSI/CAPI. It demonstrates Foord’s ability to protect downside risk in equity mandates, with material outperformance of the market during times of market weakness, and an ability of the strategy to “hold its own” during bull market rallies. The periods of highest outperformance have typically been associated with relatively low absolute return environments – this is when the rewards to good stock selection are the highest and indeed the most required.

Long-term returns

Historic investment returns
Years Composite Return % Benchmark* Return %
1 Year 14.1 9.2
3 Years 13.7 11.3
5 Years 11.1 10.8
Since Inception 01 February 2000 15 13.3

* Benchmark: ALSI/CAPI

Performance History

Document downloads


Performance Overview

Insights

09 Jul 2024

Markets In A Nutshell — For June 2024

In our monthly podcast, ‘Markets in a nutshell’, Linda Eedes discusses what’s happened in global markets and economies over the past month, how we see things playing out and how Foord is positioned as a result.

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08 Jul 2024

Markets In A Nutshell — For June 2024

The narrow US-market rally advanced in June, propelled to nosebleed highs by Wall Street’s relentless optimism. The S&P 500 Index closed the first half of the year more than 14% up. The air is becoming even thinner…

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