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 31/Jul) | -10.2 | -2.4 | 1.4 |
| 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 | 12.2 |
| BHP Group | Equity | ZA | 9.2 |
| FirstRand | Equity | ZA | 5.6 |
| Aspen | Equity | ZA | 5.0 |
| Anheuser-Busch | Equity | ZA | 4.7 |
| CF Richemont | Equity | ZA | 4.6 |
| British American Tobacco | Equity | ZA | 4.2 |
| NewGold | Commodity | ZA | 3.2 |
| Prosus "N" | Equity | ZA | 3.1 |
| Capital & Counties | Property | ZA | 3.0 |
Monthly Commentary – July 2020
- Global equities (+5.3% in US dollars) rose on decent earnings, pharmaceutical companies reporting promising early COVID-19 vaccine trial results and further massive fiscal stimulus announcements in the US and EU—emerging markets (+8.9%) outperformed on dollar weakness while the US (+5.9%) and Europe (+3.9%) also rose despite rising second wave pandemic infection rates clouding the economic outlook
- Most commodities including copper (+6.8%) and oil (+5.2%) gained, supported by the US and European stimulus announcements—the US dollar index (-4.4%) had its worst month since 2010 prompting technical break-outs in gold (+9.5%) and silver (+34.9%)
- The FTSE/JSE Capped All Share Index (+2.9% in rands) was led higher by resources (+9.0%) with financials (+0.4%) flat and industrials (-1.3%) weaker—despite more attractive valuations, the dire economy continues to weigh heavily on South African companies
- No holdings in the gold (+23.2%) and platinum (+20.1%) miners detracted as the sectors rallied on commodity price gains, despite the multitude of risks facing the SA mining sector—but the fund’s holdings of NewGold (+9.1%) and non-resource rand hedge Anheuser-Busch Inbev (+10.3%) gained
- The rand (+1.6%) appreciated on positive emerging market sentiment and dollar weakness but has declined 17.9% against the greenback this year—the fund maintains the bias to non-resource rand hedges given South Africa’s structural economic weaknesses and vulnerable currency in the long-term
- The high cash position due to the defensive fund structure detracted—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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