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Foord Conservative Fund

For conservative, medium-term investors in South African retirement fund products



Managed to comply with the statutory investment limits set for retirement funds in South Africa, the fund aims to provide conservative, medium-term investors with inflation-beating returns over rolling three-year periods.


•    With a conservative risk profile
•    Close to or in retirement
•    Seeking medium-term, inflation-beating returns
•    Over time horizons of less than five years.
•    From a South African retirement fund investment product (Reg 28).


Year Fund Return % Benchmark Return % SA Inflation %
2014 9.6 9.3 5.3
2015 10.4 9.2 5.2
2016 1.4 10.8 6.8
2017 8.1 8.7 4.7
2018 1.8 8.5 4.5
2019 13.8 8.0 4.0
2020 10.5 7.1 3.1
2021 (to 31/Mar) 3.0 2.4 1.4


CPI +4% per annum, which is applied daily using the most recently available inflation data and accordingly will be lagged on average by five to six weeks.

Time horizon

Shorter than five years.

Inception date

2 January 2014

Minimum investment

R50 000 lump sum or R1 000 per month

Significant restrictions

Maximum equity exposure of 60%: maximum offshore exposure of 30%; complies with pension fund investment regulations (Regulation 28).

Income distributions

End-February and end-August each year.

Income characteristics

Typically more than double that of the FTSE/JSE All Share Index dividend yield. The income yield is affected by the level of performance fees accrued.

Portfolio orientation

Typically a medium to low 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 (a conservative, multi-asset class fund), sub-fund of Foord SICAV domiciled in Luxembourg and Foord Global Equity Fund (a portfolio of global shares and cash), domiciled in Singapore. Both funds are priced in US dollars.

Risk of loss

Medium in periods shorter than six months. Low in periods greater than one year.

Top 10
Security description Asset class Market Portfolio weight %
Foord International Fund Foreign assets LU 14.3
Foord Global Equity Fund Foreign assets SG 14.3
RSA 10.5% (R186) Gov bonds ZA 8.9
RSA 8.0% (R2030) Gov bonds ZA 8.1
RSA 8.875% (R2035) Gov bonds ZA 4.3
NewGold Commodity ZA 3.7
Naspers "N" Equity ZA 3.4
RSA 8.25% (R2032) Gov bonds ZA 2.9
BHP Group Equity ZA 2.8
Anheuser-Busch Equity ZA 2.3

Monthly Commentary – March 2021

  • Global equities (+2.7% in US dollars) rose on expectations for accelerating global growth following vaccine rollouts, further stimulus measures and ongoing accommodative monetary policy—developed market equities (+3.3%) outperformed while the emergence of more virulent COVID-19 strains weighed on emerging markets (-1.5%)
  • Developed market bond yields rose again on higher inflation expectations—even as the US Federal Reserve downplayed inflation risks and reiterated its commitment to accommodative policy until unemployment and inflation exceeded its targets
  • Industrial commodities oil (-3.9%) and copper (-2.2%) retraced on US dollar strength—precious metals gold (-0.8%) and silver (-10.1%) declined on the opportunity cost of higher bond yields and the benign inflation outlook from central banks
  • The fund’s foreign investments detracted most from performance—on rand strength and retracement by the fund’s Chinese tech names after a strong recent run
  • The FTSE/JSE Capped All Share Index (+2.0% in rands) rose on broad-based strength—industrials (+1.9%), financials (+1.7%) and resources (+1.2%) all posted positive returns after Q4 2020 economic growth surprised and on expectations for robust economic growth this year
  • The fund’s SA equities gained, with Anheuser-Busch InBev (+6.4%), Spurcorp (+18.2%) and FirstRand (+4.9%) contributing most—partially offset by Standard Bank (-5.9%) on an earnings’ miss and BHP Group (-7.4%) and the NewGold ETF (-4.2%) on the stronger rand and weaker commodity prices
  • The All Bond Index (-2.5%) declined with the yield curve steepening as longer maturity bond yields followed US Treasury yields higher—the SA listed property sector (+1.2%) rose with fund staple Capital & Counties (-4.2%) retracing after its rapid rise (+26.1%) last month
  • The rand (+2.3% vs the US dollar) bucked emerging market currency weakness as Q4 2020 GDP growth surprised—the lack of competitiveness and strained public finances continue to make the currency vulnerable over the longer term

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, but no fees are levied when the annual net return falls below zero. Fees accrue in the Foord global funds as disclosed.


Experience the compounding phenomenon of a sustained, long-term investment with Foord.

Using rand returns of Foord’s best investment view South African funds. ? In calculating the current value of your hypothetical investment, we have applied the returns of Foord Asset Management’s retirement fund track record from 1 January 1990 to 31 March 2008 (gross of fees) combined with the net returns of the Foord Flexible Fund of Funds from 1 April 2008. Any information provided is not intended nor does it constitute financial, tax, legal, investment, or other type of advice, and the suitability or potential value of any information or particular investment source is not guaranteed. Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements. Distributions may be subject to mandatory withholding taxes. Foord does not provide any guarantee either with respect to the capital or the performance return of investments.
Using US dollar returns of Foord’s best investment view global fund. ? In calculating the current value of your investment, we have applied the long-term returns of the Foord International Trust. These returns are calculated net of fees. Past performance is no guarantee of future performance. Foord Asset Management (Singapore) Pte. Limited disclaims any liability for any loss, liability, or damages (whether direct or consequential) of any nature whatsoever that may be suffered as a result of, or which may be attributable, directly or indirectly to the use of or reliance upon the information provided.
Value Today: R0
Annualised Return: 0%
The annualised return is the effective annual percentage return achieved over the term of the investment. Results for an investment term of less than one year should be treated with caution.


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