Foord Balanced Fund
For long-term investors in South African retirement fund products
INVESTMENT OBJECTIVE
Managed to comply with the statutory investment limits set for retirement funds in South Africa, the fund aims to grow retirement savings by meaningful, inflation-beating returns over the long term.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Seeking long-term, inflation-beating returns
• Over periods exceeding five years
• From a South African retirement fund investment product (Reg 28).
| Year | Fund Return % | Benchmark Return % | SA Inflation % |
|---|---|---|---|
| 2002 (from 01/Sep) | 6.1 | 0.7 | 3.1 |
| 2003 | 15.3 | 16.1 | 0.3 |
| 2004 | 23.8 | 25.5 | 3.4 |
| 2005 | 45.8 | 30.6 | 3.6 |
| 2006 | 35.9 | 26.2 | 5.9 |
| 2007 | 12.1 | 12.5 | 8.9 |
| 2008 | -5.9 | -5.6 | 9.5 |
| 2009 | 18.0 | 17.7 | 6.3 |
| 2010 | 17.2 | 10.8 | 3.5 |
| 2011 | 10.9 | 6.0 | 6.1 |
| 2012 | 24.4 | 14.9 | 5.7 |
| 2013 | 24.2 | 21.2 | 5.4 |
| 2014 | 11.0 | 8.9 | 5.3 |
| 2015 | 10.5 | 8.0 | 5.2 |
| 2016 | 0.4 | 1.7 | 6.8 |
| 2017 | 8.0 | 11.6 | 4.7 |
| 2018 | -3.1 | -4.5 | 4.5 |
| 2019 | 12.2 | 8.7 | 4.0 |
| 2020 | 10.6 | 5.3 | 3.1 |
| 2021 | 16.1 | 20.7 | 5.9 |
| 2022 (to 30/Apr) | -1.4 | -1.0 | 1.9 |
| Benchmark |
The market value weighted average total return of the South African – Multi-Asset – High Equity unit trust sector, excluding Foord Balanced Fund. |
| Time horizon |
Longer than five years. |
| Inception date |
1 September 2002 |
| Minimum investment |
R50 000 lump sum or R1 000 per month |
| Significant restrictions |
Maximum equity exposure of 75%: maximum offshore exposure of 45%; complies with pension fund investment regulations (Regulation 28). |
| Income distributions |
End-March and end-September each year. |
| Income characteristics |
Medium yield, approximately double that of a general equity fund. Income distributions are reduced by the annual service charge, which varies with the relative performance of the fund against its benchmark. |
| Portfolio orientation |
Medium to high weighting in JSE shares and includes exposure to listed property, commodity securities, bonds, money market instruments and foreign assets. |
| Foreign assets |
Foreign asset exposure is obtained predominantly via Foord International Fund (FIF) and Foord Global Equity Fund Luxembourg (FGEFL), sub-funds of Foord SICAV domiciled in Luxembourg and Foord Global Equity Fund (FGEF) domiciled in Singapore. FIF is a conservative, multi-asset class fund. FGEF and FGEL comprise portfolios of global shares and cash. All funds are priced in US dollars. |
| Risk of loss |
Lower than that of a pure equity fund. High in periods shorter than six months, lower in periods greater than one year. |
| Security description | Asset class | Market | Portfolio weight % |
|---|---|---|---|
| Foord Global Equity Fund | Foreign assets | LU/SG | 15.6 |
| Foord International Fund | Foreign assets | LU | 14.6 |
| RSA 10.5% (R186) | Gov bonds | ZA | 7.9 |
| BHP Group | Equity | ZA | 4.5 |
| NewGold | Commodity | ZA | 4.2 |
| Naspers "N" | Equity | ZA | 3.9 |
| FirstRand | Equity | ZA | 3.4 |
| Anheuser-Busch | Equity | ZA | 3.3 |
| Aspen | Equity | ZA | 3.3 |
| CF Richemont | Equity | ZA | 3.2 |
Monthly Commentary – April 2022
- Global equities (-8.0% in US dollars) fell on US Federal Reserve comments suggesting larger than expected interest rate increases in the months ahead — protracted hostilities between Russia/Ukraine and the economic ramifications of widespread COVID-19 lockdowns in China also spooked global bourses
- Oil (+1.3%) was marginally up but volatile intramonth and is +31% higher since the beginning of the year on supply concerns while industrial commodities were broadly weaker on growing economic slowdown fears — gold (-2.0%) fell on weaker expected Chinese jewellery demand but the physical gold ETF investment contributed positively on the much weaker rand
- Bond market investors (-5.6%) incurred losses as developed market bond yields rose — the US 10 year treasury yield shifted up meaningfully on steep inflation prints and the increasingly hawkish Fed comments
- The FTSE/JSE Capped All Share Index (-3.6% in rands) fell on broad-based weakness with resources (-4.8%), industrials (-1.7%) and financials (-5.5%) in negative territory — investments in Omnia (+10.9%) and British American Tobacco (+7.7%) contributed positively while Naspers (-3.3%) and Aspen (-14.4%) detracted
- The All Bond Index (-1.7%) moved lower as the yield curve steepened on rising inflation expectations and net foreign selling — the core R186 holding (-0.1%) in the 3 to 7-year bucket outperformed as longer dated maturities underperformed
- SA listed property (-1.4%) fell on economic growth concerns as rising inflation and interest rates present headwinds to consumers — new investment in Fortress A (+0.1%) contributed positively while Capital & Counties (-2.4%) detracted despite rand weakness
- The rand (-8.1% vs the US dollar) sharply retraced some of its recent gains in line with other ermerging market commodity exporters and broad based US dollar strength — the currency is vulnerable to a reversal in the commodity export-driven terms of trade support
The fee is a performance based fee that varies around the at-benchmark fee rate as disclosed on the fact sheet. The daily fee rate is adjusted up or down based on the portfolio’s one-year rolling return relative to that of its benchmark. Minimum fee rates apply. Fees accrue in the Foord global funds as disclosed.
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