Foord Flexible Fund of Funds
For unconstrained investors seeking long-term inflation-beating returns
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.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2008 (from 01/Apr)||-8.5||13.9||5.4|
|2020 (to 30/Sep)||13.2||7.7||2.6|
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
Longer than five years.
1 April 2008
R50 000 lump sum or R1 000 per month
None. The fund is unconstrained.
End-February and end-August each year.
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.
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 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||9.4|
|RSA 8.0% (R2030)||Gov bonds||ZA||4.5|
|Wheaton Precious Metals||Equity||US||2.7|
|RSA 8.75% (R2048)||Gov bonds||ZA||2.5|
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—on worries that high unemployment levels and expiring stimulus measures could weigh on growth
- Global developed market sovereign bond yields fell modestly—at its mid-month meeting the US Federal Reserve signalled continued dovishness with no rate hikes expected until 2023
- 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 on lower demand
- The fund’s holding in leading gold and silver streamer Wheaton Precious Metals (-8.1%) and ETFS physical gold (-3.6%) detracted from performance on precious metals weakness while core holding Alphabet (-10.1%) fell—but the fund’s non-tech Chinese investments mostly added value
- The FTSE/JSE All Share Index (-1.6% in rands) was led lower by resources stocks (-3.4%) on lower prices while financial counters (+2.3%) rallied from oversold levels—the investment in FirstRand (+9.0%) contributed to returns while Aspen (-12.1%) and brewer Anheuser-Busch Inbev (-7.8%) detracted
- The All Bond Index was unchanged, but SA listed property stocks (-3.0%) fell again—the fund’s large holding in the mid-duration R186 bond (+1.5%) again outperformed the ALBI but 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 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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