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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 30/Sep) -10.4 -3.7 2.6

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 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
Commentary

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
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.

WHAT IF YOU HAD INVESTED WITH US IN THE PAST?


Experience the compounding phenomenon of a sustained, long-term investment with Foord.

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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.

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.

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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…

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