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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 -0.3 6.5 3.1
2021 (to 30/Jun) 13.6 14.6 2.7

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 10.5
BHP Group Equity ZA 8.3
Aspen Equity ZA 6.5
FirstRand Equity ZA 5.5
CF Richemont Equity ZA 4.7
Standard Bank Equity ZA 4.4
Anglo American Equity ZA 3.8
Anheuser-Busch Equity ZA 3.7
Prosus "N" Equity ZA 3.4
Netcare Equity ZA 2.9
Commentary

Monthly Commentary – June 2021

  • Developed (+1.4% in US dollars) and emerging (+1.3%) markets were led higher by US bourses (+2.8%) on strong economic data and vaccination rollouts—after first taking fright when the US Federal Reserve brought forward to 2023 the date by when it expected US interest rates would first rise
  • Oil (+8.4%) rose above $70 a barrel for the first time in two years after OPEC+ signalled strong demand amid managed supply—precious metals gold (-6.9%) and silver (-6.7%) and industrial bellwether copper (-7.6%) fell sharply on easing inflation concerns and dollar strength
  • The FTSE/JSE Capped All Share Index (-2.5% in rands) was dragged lower by sharp falls in resources (-6.4%) and financials (-3.0%), with only the industrials sector (+0.4%) registering a small gain—lower commodity prices and a rampant COVID-19 third wave weighed on sentiment
  • The lower resources (-6.4%) weighting, and no precious metals miners (-14.7%) in particular, was the largest contributor to the fund’s outperformance—core resources holding BHP Group (+0.4%) outperformed the other sector heavyweight Anglo American (-6.9%) on the latter’s large exposure to platinum group metals miners
  • The over-weight holdings in mid-cap industrials Foschini (+22.6%) and Omnia (+10.5%) also contributed to fund outperformance on good financial results—partially offset by the lower allocation to Richemont (+4.3%) and zero holding in telco company MTN (+4.1%)
  • The lower weight to listed property (+3.4%) detracted at the margin—core holdings in London property company Capital & Counties (-5.2%) and SA counter Fortress A (-5.0%) underperformed the broader property sector
  • The rand (-4.0% vs the US dollar) retraced some its recent gains on dollar strength, lower commodity prices and a rampant COVID-19 third wave—while further short-term strength is possible, the unit remains structurally vulnerable longer term
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.

Calculate
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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