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/Sep) | -10.4 | -3.7 | 2.6 |
| 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 | 11.7 |
| BHP Group | Equity | ZA | 8.6 |
| FirstRand | Equity | ZA | 6.2 |
| Aspen | Equity | ZA | 5.2 |
| CF Richemont | Equity | ZA | 4.8 |
| British American Tobacco | Equity | ZA | 4.5 |
| Anheuser-Busch | Equity | ZA | 4.5 |
| NewGold | Commodity | ZA | 3.2 |
| Standard Bank | Equity | ZA | 3.0 |
| Prosus "N" | Equity | ZA | 3.0 |
Monthly Commentary – September 2020
- Global equities (-3.2% in US dollars) fell for the first time in six months, weighed down by benchmark-heavy tech stocks—a wave of IPOs, M&A and stock splits typically evident of excessive liquidity characterised the month
- The US dollar strengthened against most majors, weighing on emerging markets and commodities—gold (-4.1%) retraced some of its recent gains and oil (-9.6%) tumbled after Saudi Arabia cut prices for major customers
- The FTSE/JSE Capped All Share Index (-1.2% in rands) was led lower by resources stocks (-3.4%) on lower commodity prices— while financial counters (+2.3%) rallied
- The fund’s low weight to resources was beneficial in the main given the slump in the gold miners (-11.0%)—but top holding BHP Group (-3.2%) and the NewGold ETF (-4.8%) detracted
- Financial counters led the bourse with the banks index (+8.8%) rallying from oversold levels (it is down 34.6% for the year)—fund positions in FirstRand (+9.0%) gained while Standard Bank (+2.4%) lagged
- The SA listed property sector (-3.0%) fell on deteriorating fundamentals, but investments in Fortress A (+5.5%) and niche player Stor-Age (+2.0%) were positive—although UK property counter Capco (-12.8%) was a big detractor
- The rand (+1.1% vs the US dollar) gained materially against the dollar but lost ground latterly—on risk off sentiment as fears of renewed European COVID-19 lockdowns mounted
- The managers see some enticing opportunities at current valuations, especially in the mid-cap sector—restaurant franchise Spur is dealing with the challenges of COVID-19 lockdowns but it and companies like Omnia, Metair, Hudaco, Afrox and others trade on price-earnings multiples of less than eight-times earnings with good prospects in all but the most catastrophic scenarios for South Africa
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
02 Sep 2020
Investment Insight - In Conversation with Dave Foord
Dave Foord talks to Nedgroup Investments’ Rob Johnson about the events that unfolded over the last nine months and what experiences have helped him navigate the current situation.
31 Aug 2020
The More Things Change...
The COVID-19 pandemic has dramatically and swiftly changed our living routines and operating habits. Future gazers have opined on how much of our daily lives will change permanently. But Foord Singapore analyst JC…