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|
|2021 (to 30/Sep)||10.5||13.3||4.5|
The market value weighted average total return of the South African – Multi-Asset – High Equity unit trust sector, excluding Foord Balanced Fund.
Longer than five years.
1 September 2002
R50 000 lump sum or R1 000 per month
Maximum equity exposure of 75%: maximum offshore exposure of 30%; complies with pension fund investment regulations (Regulation 28).
End-March and end-September each year.
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.
Medium to high weighting in JSE shares and includes exposure to listed property, commodity securities, bonds, money market instruments and 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||16.2|
|Foord International Fund||Foreign assets||LU||12.5|
|RSA 10.5% (R186)||Gov bonds||ZA||8.8|
Monthly Commentary – September 2021
- Global equities (-4.1% in US dollars) fell after seven straight months of gains—slowing global economic growth amid growing uncertainties around new COVID-19 variants, Evergrande contagion, energy supply issues in Europe and China, and global supply chain difficulties giving rise to higher inflation all dampened enthusiasm
- Developed market bond yields rose on worries that rising global inflation may not be as transitory as first believed—while Chairman Powell continues to walk a fine monetary policy line, it is becoming increasingly probable the US Fed will begin its bond tapering program within the next two months and we continue to expect a lift-off in rates sometime in 2022
- The FTSE/JSE Capped All Share Index (-3.1% in rands) was dragged lower by another sharp fall in the resources sector (-9.3%) on lower industrial and precious metals prices—industrials (-0.8%) also finished lower with financials (+1.7%) pulled up by select banks and life insurance companies
- Domestic equity was the largest contributor to fund returns with longstanding holding in Aspen (+39.5%) sharply higher and meaningful contributions from mid-cap industrial Omnia (+20.1%) and preferred bank FirstRand (+4.2%)—BHP Group (-9.2%) was the largest detractor although the fund maintains a relatively low allocation to the cyclical resource sector
- The All Bond Index (-2.1%) fell as yields across the curve moved higher in line with rising global bond yields—the core holding in the short and medium-term sector (-0.6%) outperformed as longer dated maturities suffered steeper losses
- Foreign assets (-0.2% in rands) detracted marginally with the fall in global equities offset by the weakening currency—the US S&P 500 market index hedges provided some protection while resources stocks and the fund’s Chinese holdings detracted
- The rand (-3.8% vs the US dollar) weakened on broad-based dollar strength and negative emerging market sentiment with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates—the currency remains vulnerable as the short-term platinum group metals price terms of trade bonus starts to dissipate
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.