Skip to main content
This website uses cookies. Read more. Okay

Foord Equity Fund

For long-term investors in JSE-listed securities

INVEST NOW

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/Apr) -15.5 -12.0 1.6

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 10.7
BHP Group Equity ZA 8.5
RMB Holdings Equity ZA 6.3
Aspen Equity ZA 5.6
British American Tobacco Equity ZA 4.6
Prosus "N" Equity ZA 4.5
Anheuser-Busch Equity ZA 4.4
CF Richemont Equity ZA 4.4
Capital & Counties Property ZA 3.9
Standard Bank Equity ZA 2.8
Commentary

Monthly Commentary – April 2020

  • Global equities (+10.7%) rebounded off the March lows to post the best one-month gain in thirty years, led by the US (+13.1%) after unprecedented global fiscal and monetary stimulus in support of faltering economies – emerging markets (+9.2%) also gained despite more than 80 countries seeking IMF aid
  • The FTSE/JSE Capped All Share Index (+14.2% in rands) was led higher by resources (+23.0%) – financials (+11.9%) and industrials (+9.6%) were also stronger in line with the global rally, while SA listed property (+7.0%) lagged
  • Within resources, the core holding in BHP Group (+14.8%) added value – but partially offset by the zero allocation to precious metals miners (+48.7%)
  • Principal industrial holdings Aspen (+25.1%), British American Tobacco (+18.3%) and Naspers (+13.5%) contributed meaningfully – Anheuser-Busch Inbev (+5.9%) and UK property stock Capital & Counties (+4.3%) posted positive returns but detracted from performance relative to the broader market index
  • The big investment in best-quality bank RMB Holdings (+7.3%) also moved higher – but relative returns suffered from zero allocation to Absa (+30.0%) and an underweight position in Nedbank (+38.1%), both poorer quality stocks recovering from severe sell-offs in March
  • The rand (-3.9% vs the US dollar) weakened more as the economic shock of the extended lockdown compounds South Africa’s structural growth challenges – S&P downgraded SA debt further into sub-investment grade on forecasts of accelerating deterioration of public finances
  • The fund remains defensively structured given the weak South African economy and uncertainty about the extent of the economic shutdown – 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.

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 long-term equity carve-out returns of Foord Asset Management's Global Balanced composite from 1 January 1990. These returns are gross of fees and taxes. 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

24 Apr 2020

Politics of oil

There has been a seismic change in global oil markets, with potentially devastating long-term risks to the global economy and geopolitics. Portfolio manager and resources analyst MIKE TOWNSHEND looks at the politics…

Read more

09 Apr 2020

THE PIN THAT POPPED THE BUBBLE

Global equity markets delivered the best calendar-year return of the decade in 2019. Many markets were at or near all-time highs. In this podcast, Nick Curtin talks to Foord Singapore portfolio manager Brian Arcese…

Listen now
newsletter subscription