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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 0.8 6.5
3 Years -2.1 2.9
5 Years 0.4 6.2
Since Inception 01 February 2000 14.8 13.2

* Benchmark: ALSI/CAPI

Performance History

Document downloads


Performance Overview

Insights

14 Jan 2021

Year in review

We will remember 2020 as the year COVID-19 dramatically impacted our lives. Portfolio manager Mike Townshend looks at the year that was.

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10 Dec 2020

Foord Global Funds boost SA performance

Returns on Foord’s South African multi-asset funds rank near the top of their respective peer groups this year as might be expected from Foord during especially troubled markets. The two Foord global funds buoyed…

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