Foord Equity Fund
For long-term investors in JSE-listed securities
INVESTMENT OBJECTIVE
The fund aims to outperform the FTSE/JSE Capped All Share Index over the long term, with lower risk of loss.
FOR SOUTH AFRICAN INVESTORS
- With a higher risk profile
- Seeking long-term growth over periods exceeding five years
- From a portfolio of JSE-listed equity, commodity and property stocks
- And able to withstand investment volatility in the short to medium term.
| Year | Fund Return % | Benchmark Return % | SA Inflation % |
|---|---|---|---|
| 2002 (from 01/Sep) | 5.3 | -2.9 | 3.1 |
| 2003 | 22.4 | 16.1 | 0.3 |
| 2004 | 32.6 | 25.4 | 3.4 |
| 2005 | 49.5 | 47.3 | 3.6 |
| 2006 | 43.6 | 41.2 | 5.9 |
| 2007 | 14.2 | 19.2 | 8.9 |
| 2008 | -18.5 | -23.2 | 9.5 |
| 2009 | 32.3 | 32.1 | 6.3 |
| 2010 | 29.0 | 19.0 | 3.5 |
| 2011 | 9.8 | 2.6 | 6.1 |
| 2012 | 33.4 | 26.7 | 5.7 |
| 2013 | 30.0 | 21.4 | 5.4 |
| 2014 | 16.4 | 10.9 | 5.3 |
| 2015 | 2.9 | 5.1 | 5.2 |
| 2016 | 3.0 | 2.6 | 6.8 |
| 2017 | 5.4 | 21.0 | 4.7 |
| 2018 | -12.2 | -7.4 | 4.5 |
| 2019 | 5.9 | 10.5 | 4.0 |
| 2020 (to 30/Apr) | -15.5 | -12.0 | 1.6 |
| Benchmark |
Total return of the FTSE/JSE Capped All Share Index. |
| Time horizon |
Longer than five years. |
| Inception date |
1 September 2002 |
| Minimum investment |
R50 000 lump sum or R1 000 per month |
| Significant restrictions |
SA equity exposure between 80% and 100%, with balance invested in cash and oither JSE listed securities. |
| Income distributions |
End-February and end-August each year. |
| Income characteristics |
Low gross yield, similar to FTSE/JSE All Share Index dividend yield. Income distributions are reduced by the annual service charge, which varies with the relative performance of the fund against its benchmark. |
| Portfolio orientation |
A portfolio of quality JSE shares that present compelling long-term investment value. |
| Risk of loss |
High in periods shorter than one year. Lower in periods greater than three years. |
| Security description | Asset class | Market | Portfolio weight % |
|---|---|---|---|
| Naspers "N" | Equity | ZA | 10.7 |
| BHP Group | Equity | ZA | 8.5 |
| RMB Holdings | Equity | ZA | 6.3 |
| Aspen | Equity | ZA | 5.6 |
| British American Tobacco | Equity | ZA | 4.6 |
| Prosus "N" | Equity | ZA | 4.5 |
| Anheuser-Busch | Equity | ZA | 4.4 |
| CF Richemont | Equity | ZA | 4.4 |
| Capital & Counties | Property | ZA | 3.9 |
| Standard Bank | Equity | ZA | 2.8 |
Monthly Commentary – April 2020
- Global equities (+10.7%) rebounded off the March lows to post the best one-month gain in thirty years, led by the US (+13.1%) after unprecedented global fiscal and monetary stimulus in support of faltering economies – emerging markets (+9.2%) also gained despite more than 80 countries seeking IMF aid
- The FTSE/JSE Capped All Share Index (+14.2% in rands) was led higher by resources (+23.0%) – financials (+11.9%) and industrials (+9.6%) were also stronger in line with the global rally, while SA listed property (+7.0%) lagged
- Within resources, the core holding in BHP Group (+14.8%) added value – but partially offset by the zero allocation to precious metals miners (+48.7%)
- Principal industrial holdings Aspen (+25.1%), British American Tobacco (+18.3%) and Naspers (+13.5%) contributed meaningfully – Anheuser-Busch Inbev (+5.9%) and UK property stock Capital & Counties (+4.3%) posted positive returns but detracted from performance relative to the broader market index
- The big investment in best-quality bank RMB Holdings (+7.3%) also moved higher – but relative returns suffered from zero allocation to Absa (+30.0%) and an underweight position in Nedbank (+38.1%), both poorer quality stocks recovering from severe sell-offs in March
- The rand (-3.9% vs the US dollar) weakened more as the economic shock of the extended lockdown compounds South Africa’s structural growth challenges – S&P downgraded SA debt further into sub-investment grade on forecasts of accelerating deterioration of public finances
- The fund remains defensively structured given the weak South African economy and uncertainty about the extent of the economic shutdown – good diversification, optionality and high levels of liquidity position the portfolio exceptionally well for the current environment
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.
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