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Foord Equity Fund

For long-term investors in JSE-listed securities

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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.
Performance

Returns
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

Characteristics
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.

Top 10
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
Commentary

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
Fees

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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Currency
Using rand returns of Foord’s best investment view South African funds. ? In calculating the current value of your hypothetical investment, we have applied the returns of Foord Asset Management’s retirement fund track record from 1 January 1990 to 31 March 2008 (gross of fees) combined with the net returns of the Foord Flexible Fund of Funds from 1 April 2008. Any information provided is not intended nor does it constitute financial, tax, legal, investment, or other type of advice, and the suitability or potential value of any information or particular investment source is not guaranteed. Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements. Distributions may be subject to mandatory withholding taxes. Foord does not provide any guarantee either with respect to the capital or the performance return of investments.
Using US dollar returns of Foord’s best investment view global fund. ? In calculating the current value of your investment, we have applied the long-term returns of the Foord International Trust. These returns are calculated net of fees. Past performance is no guarantee of future performance. Foord Asset Management (Singapore) Pte. Limited disclaims any liability for any loss, liability, or damages (whether direct or consequential) of any nature whatsoever that may be suffered as a result of, or which may be attributable, directly or indirectly to the use of or reliance upon the information provided.
Value Today: R0
Annualised Return: 0%
The annualised return is the effective annual percentage return achieved over the term of the investment. Results for an investment term of less than one year should be treated with caution.

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