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Foord Flexible Fund of Funds

For unconstrained investors seeking long-term inflation-beating returns

INVEST NOW

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

Dave Foord

Chief Investment Officer

Performance

Returns
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 30/Jun) 5.2 5.1 2.7

Characteristics
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.
Top 10
Security description Asset class Market Portfolio weight %
RSA 10.5% (R186) Gov bonds ZA 5.2
RSA 8.0% (R2030) Gov bonds ZA 4.3
Anheuser-Busch Equity ZA 3.3
NewGold Commodity ZA 3.3
Aspen Equity ZA 3.2
BHP Group Equity ZA 2.9
Anglo American Equity ZA 2.8
Alphabet Inc Equity US 2.8
Naspers "N" Equity ZA 2.7
RSA 9.0% (R2040) Gov bonds ZA 2.7
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
  • Developed market bond yields declined despite US and Eurozone inflation rising faster than expectations—the Fed attributes the rise in inflation to what it thinks are transitory factors
  • 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 large allocation to foreign assets contributed most to performance with the rand retracing some of its recent gains—Biolife Solutions (+33.6% in US dollars) and Alphabet (+6.5%) were the top performers while resources companies Freeport-McMoran (-12.7%) and Pan American Silver (-12.9%)
  • 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—the fund’s SA equities detracted but outperformed the market index, mostly driven by the under-weight allocation to the weaker resources sector
  • The All Bond Index (+1.1%) gained as the yield curve flattened with longer dated bonds outperforming—the fund’s bond allocation remains concentrated in the 3-7-year maturity bucket but the managers have been investing in longer dated instruments at the margin as relative valuations shift
  • 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.

Invest now

WHAT IF YOU HAD INVESTED WITH US IN THE PAST?

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

Calculate
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.

Document Downloads

Performance Data History Price History Data Foord Flexible Fund of Funds - Fact Sheet - June 2021 Foord Flexible Fund of Funds quarterly report - June 2021

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Foord Asset Management

TEL: +27 (0)21 532 6988

FAX: +27 (0)21 532 6999

INFO@FOORD.CO.ZA