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

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.

Performance

Returns
Year Fund Return % Benchmark Return % SA Inflation %
2008 (from 01/Apr) -8.5 13.9 5.4
2009 15.1 10.8 6.3
2010 19.7 8.6 3.5
2011 16.7 11.2 6.1
2012 29.9 11.1 5.7
2013 40.7 10.6 5.4
2014 9.3 11.0 5.3
2015 21.9 10.0 5.2
2016 -3.7 11.8 6.8
2017 5.4 10.0 4.7
2018 -1.2 10.1 4.5
2019 13.7 8.9 4.0
2020 (to 30/Apr) 11.1 3.4 1.6

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 10.0
RSA 8.0% (R2030) Gov bonds ZA 3.9
Alphabet Inc Equity US 2.8
Anheuser-Busch Equity ZA 2.7
FMC Corp Equity US 2.5
RSA 8.75% (R2048) Gov bonds ZA 2.5
Wheaton Precious Metals Equity US 2.5
Bayer Equity DE 2.4
JD.Com Inc Equity US 2.4
Aspen Equity ZA 2.2
Commentary

Monthly Commentary – April 2020

  • Global equities (+10.7% in US dollars) rebounded off the March lows to post the best one-month gain since 1987 – US bourses (+13.1%) led developed markets (+10.9%) higher after unprecedented fiscal and monetary stimulus in support of faltering economies
  • The FTSE/JSE Capped All Share Index (+14.2% in rands) also rallied, with resources (23.0%) led higher by the gold and platinum mining sectors – financials (+11.9%) and industrials (+9.6%) tracked global bourses higher, while SA listed property (+7.0%) lagged
  • The All Bond Index (+3.9%) gained as yields moved down sharply on the lower repo rate and improved investor sentiment off the March trough – the high coupon, shorter duration R186 government bond (+7.7%) contributed meaningfully to portfolio returns
  • Oil (+11.1%) gained but remains under pressure given the 25-30% collapse in near-term demand despite major producers agreeing a 10% supply cut – the WTI oil price went negative for a brief period on a futures related technicality given almost-full land-based storage facilities in the US
  • Leading precious metals miner Wheaton Precious Metals (+37.2%) was a big performance contributor, driven by increases in gold (+6.4%) and silver (+10.1%) – while Mesoblast (+159%) surged after its remestemcel-L treatment achieved meaningful results in treating a small sample of severe COVID-19 patients and progressed to comprehensive trials
  • 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 portfolio is well-positioned for the current market environment, with a preference for global over SA Inc. companies and defensive, core holding in high-yielding SA government bonds – the excellent absolute performance over March’s selloff and April’s bear-market rally without any major portfolio changes bears testament to this fine balance
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