Foord Flexible Fund of Funds
For unconstrained investors seeking long-term inflation-beating returns
INVESTMENT OBJECTIVE
Exploiting the benefits of global diversification, the fund aims to provide investors with an after-fee return of 5% per annum above SA inflation.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Seeking long-term inflation-beating returns over periods exceeding five years
• Requiring balanced exposure to South African and global investments.
FUND MANAGERS
| Year | Fund Return % | Benchmark Return % | SA Inflation % |
|---|---|---|---|
| 2008 (from 01/Apr) | -8.5 | 9.1 | 5.4 |
| 2009 | 15.1 | 11.3 | 6.3 |
| 2010 | 19.7 | 8.5 | 3.5 |
| 2011 | 16.7 | 11.1 | 6.1 |
| 2012 | 29.9 | 10.7 | 5.7 |
| 2013 | 40.7 | 10.4 | 5.4 |
| 2014 | 9.3 | 10.3 | 5.3 |
| 2015 | 21.9 | 10.2 | 5.2 |
| 2016 | -3.7 | 11.8 | 6.8 |
| 2017 | 5.4 | 9.7 | 4.7 |
| 2018 | -1.2 | 9.5 | 4.5 |
| 2019 | 13.7 | 9.0 | 4.0 |
| 2020 | 16.4 | 8.1 | 3.1 |
| 2021 (to 31/Mar) | 3.7 | 2.6 | 1.4 |
| Benchmark |
CPI +5% per annum, which is applied daily using the most recently available inflation data and accordingly will be lagged on average by 5 to 6 weeks |
| Time horizon |
Longer than five years. |
| Inception date |
1 April 2008 |
| Minimum investment |
R50 000 lump sum or R1 000 per month |
| Significant restrictions |
None. The fund is unconstrained. |
| Income distributions |
End-February and end-August each year. |
| Income characteristics |
Low to medium income yield depending on the asset allocation strategy employed as the foreign asset component is invested in roll-up funds which do not distribute their income. Income distributions are reduced by the annual service charge, which varies with the relative performance of the fund against the benchmark. |
| Portfolio orientation |
Exploiting the benefits of global diversification, the portfolio continually reflects Foord’s prevailing best investment view on all available asset classes in South Africa and around the world. |
| Foreign assets |
Foreign asset exposure is obtained predominantly via Foord International Fund (a conservative, multi-asset class fund) and Foord Global Equity Fund Luxembourg (a portfolio of global shares and cash). Both funds are sub-funds of Foord SICAV domiciled in Luxembourg and are priced in US dollars. |
| Risk of loss |
Lower than that of a pure equity fund. High in periods shorter that six months, lower in periods greater than one year. |
| Security description | Asset class | Market | Portfolio weight % |
|---|---|---|---|
| RSA 10.5% (R186) | Gov bonds | ZA | 5.5 |
| RSA 8.0% (R2030) | Gov bonds | ZA | 4.1 |
| NewGold | Commodity | ZA | 3.3 |
| Anheuser-Busch | Equity | ZA | 3.0 |
| Aspen | Equity | ZA | 2.9 |
| BHP Group | Equity | ZA | 2.8 |
| Naspers "N" | Equity | ZA | 2.8 |
| Alphabet Inc | Equity | US | 2.7 |
| RSA 9.0% (R2040) | Gov bonds | ZA | 2.5 |
| Extended Stay America Inc | Equity | US | 1.9 |
Monthly Commentary – March 2021
- Global equities (+2.7% in US dollars) rose on expectations for accelerating global growth following vaccine rollouts, further stimulus measures and ongoing accommodative monetary policy—developed market equities (+3.3%) outperformed while the emergence of more virulent COVID-19 strains weighed on emerging markets (-1.5%)
- Developed market bond yields rose again on higher inflation expectations—even as the US Federal Reserve downplayed inflation risks and reiterated its commitment to accommodative policy until unemployment and inflation exceeded its targets
- Within the global funds, US agriculture company FMC (+9.2%), retail pharmacy chain CVS (+10.4%), Scottish energy multi-national SSE (+9.9%), Chinese insurer PICC P&C (+14.8%) and US hospitality play Extended Stay (+23.4%) contributed the most to fund performance—Wharf Real Estate (-4.6%) and US miner Freeport McMoran (-2.9%) detracted while investment in Chinese tech names and the S&P hedges were the biggest detractors this month
- The FTSE/JSE Capped All Share Index (+2.0% in rands) rose on broad-based strength—industrials (+1.9%), financials (+1.7%) and resources (+1.2%) all posted positive returns after Q4 2020 economic growth surprised and on expectations for robust economic growth this year
- The fund’s SA equities gained, with Anheuser-Busch InBev (+6.4%), The Foschini Group (+17.0%), Spurcorp (+17.4%) and FirstRand (+4.9%) contributing most—partially offset by BHP Group (-7.4%) and the NewGold ETF (-4.2%) on the stronger rand and weaker commodity prices
- The All Bond Index (-2.5%) declined with the yield curve steepening as longer maturity bond yields followed US Treasury yields higher—the SA listed property sector (+1.2%) rose with fund staple Capital & Counties (-4.2%) retracing after its rapid rise (+26.1%) last month
- The rand (+2.3% vs the US dollar) bucked emerging market currency weakness as Q4 2020 GDP growth surprised—the lack of competitiveness and strained public finances continue to make the currency vulnerable over the longer term
- Global equities (+2.7% in US dollars) rose on expectations for accelerating global growth following vaccine rollouts, further stimulus measures and ongoing accommodative monetary policy—developed market equities (+3.3%) outperformed while the emergence of more virulent COVID-19 strains weighed on emerging markets (-1.5%)
- Developed market bond yields rose again on higher inflation expectations—even as the US Federal Reserve downplayed inflation risks and reiterated its commitment to accommodative policy until unemployment and inflation exceeded its targets
- US agriculture company FMC (+9.2%), retail pharmacy chain CVS (+10.4%), Scottish energy multi-national SSE (+9.9%), Chinese insurer PICC P&C (+14.8%) and US hospitality play Extended Stay (+23.4%) contributed the most to fund performance—Wharf Real Estate (-4.6%) and US miner Freeport McMoran (-2.9%) detracted while investment in Chinese tech names and the S&P hedges were the biggest detractors this month
- The FTSE/JSE Capped All Share Index (+2.0% in rands) rose on broad-based strength—industrials (+2.3%), financials (+1.6%) and resources (+2.0%) all posted positive returns after Q4 2020 economic growth surprised and on expectations for robust economic growth this year
- The fund’s SA equities gained, with Anheuser-Busch InBev (+6.4%), The Foschini Group (+17.0%), Spurcorp (+17.4%) and FirstRand (+4.9%) contributing most—partially offset by BHP Group (-7.4%) and the NewGold ETF (-4.2%) on the stronger rand and weaker commodity prices
- The All Bond Index (-2.5%) declined with the yield curve steepening as longer maturity bond yields followed US Treasury yields higher—the SA listed property sector (+1.2%) rose with fund staple Capital & Counties (-4.2%) retracing after its rapid rise (+26.1%) last month
- The rand (+2.3% vs the US dollar) bucked emerging market currency weakness as Q4 2020 GDP growth surprised—the lack of competitiveness and strained public finances continue to make the currency vulnerable over the longer term
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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