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 | -0.3 | 6.5 | 3.1 |
| 2021 | 26.0 | 31.7 | 5.9 |
| 2022 (to 30/Apr) | 0.1 | 1.1 | 1.9 |
| 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-March and end-September 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 | 8.2 |
| Standard Bank | Equity | ZA | 5.3 |
| BHP Group | Equity | ZA | 5.2 |
| FirstRand | Equity | ZA | 4.8 |
| CF Richemont | Equity | ZA | 4.6 |
| Anglo American | Equity | ZA | 4.6 |
| Aspen | Equity | ZA | 4.4 |
| Anheuser-Busch | Equity | ZA | 4.0 |
| Sasol | Equity | ZA | 3.8 |
| Spar Group | Equity | ZA | 3.3 |
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
- The FTSE/JSE Capped All Share Index (-3.6% in rands) fell in line with global equity markets and other merging market commodity exporting countries — weakness was broad-based with resources (-4.8%), industrials (-1.7%) and financials (-5.5%) in negative territory
- Fund outperformance was driven by the underweight allocation to resources, overweight to industrials and stock selection within financials — allocations to media (-2.6%) and healthcare (-6.6%) detracted on a relative basis
- Investments in Mediclinic (+8.9%), Anheuser-Busch InBev (+4.1%) and Omnia (+10.9%) were the largest contributors to outperformance — holdings in Aspen (-14.4%) and Naspers (-3.3%) were the largest detractors on short-term company specific 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.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with Foord.
Insights
25 May 2022
How does Foord manage risk in the Foord Flexible Fund?
Dave Foord discusses how diversification is used to manage risk in the Foord Flexible Fund.
25 May 2022
What hedging strategies are employed in the Foord Flexible Fund especially on currency risk?
Dave Foord discusses what hedging strategies are employed in the Foord Flexible Fund, especially on currency risk.