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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 41.4 55.6
3 Years 3.5 9.3
5 Years 1.3 8
Since Inception 01 February 2000 15.2 13.7

* Benchmark: ALSI/CAPI

Performance History

Document downloads


Performance Overview

Insights

19 Apr 2021

Quo vadis, cleantech investors?

Renewed global commitment to the environment has ignited much investment chatter, driving stocks in the cleantech and renewables space to ultra-high valuations. Foord Singapore portfolio manager, Brian Arcese…

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12 Apr 2021

Finding Inflation-beating Returns

Portfolio manager at Foord Singapore, Brian Arcese, reflects on the anniversary of the pandemic-driven sell-off and how investors can find inflation-beating opportunities in the markets.

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