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 (to 30/Sep) | 20.8 | 15.2 | 5.1 |
| 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 % |
|---|---|---|---|
| Aspen | Equity | ZA | 8.9 |
| Naspers "N" | Equity | ZA | 8.8 |
| BHP Group | Equity | ZA | 6.6 |
| FirstRand | Equity | ZA | 5.9 |
| Standard Bank | Equity | ZA | 4.8 |
| CF Richemont | Equity | ZA | 4.2 |
| Anglo American | Equity | ZA | 4.0 |
| Sasol | Equity | ZA | 3.7 |
| Anheuser-Busch | Equity | ZA | 3.5 |
| Prosus "N" | Equity | ZA | 3.2 |
Monthly Commentary – September 2021
- Global equities (-4.1%) 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
- Industrial commodities iron ore (-24.9%) and copper (-6.2%) fell on concerns of a slowdown in Chinese economic growth compounded by Chinese power supply constraints as oil (+7.6%), gas (+87.5%) and coal (+53.4%) rose sharply as alternatives—precious metals platinum (-4.8%), palladium (-22.6%), silver (-10.5%) and gold (-3.3%) moved lower on US dollar strength, with palladium impacted by continued auto production problems
- 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 precious metals prices in particular—industrials (-0.8%) also finished lower with financials (+2.1%) pulled up by select banks and life insurance companies
- Fund outperformance was driven by the meaningful overweight allocation to healthcare (+16.4%) and the low allocation to commodity cyclicals (-7.8%) and precious metals miners (-12.8%)—the low weight to telecommunications stocks (+4.7%) via zero holding in large index stock MTN (+5.9%) was the only notable detractor
- The longstanding investment in Aspen (+39.5%) rose sharply as the company continued to re-rate from an oversold position, as did the overweight allocation to Sasol (+27.4%) that was sharply higher on a surging oil price—stock selection in SA Inc. stocks continued to add value with quality mid-cap companies Omnia (+18.4%), Spurcorp (+12.0%) and Metair (+9.6%) all outperforming
- 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.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with Foord.
Insights
07 Oct 2021
Foord Turns 40
Foord opened its doors for business on 1 October 1981 in Market House, Greenmarket Square. Then known as Foord & Meintjes, founders Dave Foord and Liston Meintjes were joined by receptionist Loretta Macleod (retired…
07 Oct 2021
Markets in a nutshell — September 2021
Another eventful month in global markets, another modicum of time in the stewardship of investments. This month Foord celebrates 40 years in business and we thank all our investors for their loyalty over the years.…