Foord Global Equity Feeder Fund
CLOSED TO NEW INVESTMENT
For long-term investors in global equity securities
INVESTMENT OBJECTIVE
To outperform the MSCI All Country World Net Total Return Index from an actively managed portfolio of global equities, without assuming greater risk.
FOR SOUTH AFRICAN INVESTORS
• With a higher risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation
• And able to withstand investment volatility in the short to medium term.
| Year | Fund Return % | Benchmark Return % | SA Inflation % |
|---|---|---|---|
| 2014 (from 01/May) | 6.7 | 12.0 | 1.6 |
| 2015 | 32.0 | 31.8 | 5.2 |
| 2016 | -9.4 | -5.1 | 6.8 |
| 2017 | 14.1 | 11.7 | 4.7 |
| 2018 | -3.5 | 5.1 | 4.5 |
| 2019 | 24.3 | 23.9 | 4.0 |
| 2020 | 28.8 | 21.4 | 3.1 |
| 2021 (to 30/Sep) | 1.8 | 14.4 | 4.5 |
| Benchmark |
The ZAR equivalent of MSCI All Country World Total Return Index. |
| Time horizon |
Longer than three years. |
| Inception date |
2 May 2014 |
| Minimum investment |
R50 000 lump sum or R1 000 per month |
| Significant restrictions |
The portfolio may only invest in cash and one other collective investment scheme. |
| Income distributions |
The Foord Global Equity Fund, in which the fund invests, does not distribute its income. |
| Income characteristics |
Marginal to zero income yield as the Foord Global Equity Fund is a roll-up fund and does not distribute its income. |
| Portfolio orientation |
Invests in Foord Global Equity Fund, a fund invested primarily in a diversified portfolio of global equities, priced in US dollars and domiciled in Singapore. |
| Risk of loss |
Currency volatility means risk of loss in the short term is high. In general, the risk is high in periods shorter than one year and lower in periods longer than three years |
| Security description | Asset class | Market | Portfolio weight % |
|---|---|---|---|
| Alphabet Inc | Equity | US | 7.2 |
| Tencent Holdings | Equity | HK | 4.8 |
| JD.Com Inc | Equity | US | 4.3 |
| Freeport-McMoran Inc | Equity | US | 3.7 |
| Nutrien | Equity | US | 3.2 |
| Elanco Animal Health Inc | Equity | US | 3.0 |
| Baidu Inc | Equity | US | 2.9 |
| Alibaba Group Holding Ltd | Equity | HK | 2.6 |
| Pan American Silver Corp | Equity | US | 2.5 |
| Unilever NV-CVA | Equity | NL | 2.4 |
Monthly Commentary – September 2021
- Global equities (-4.1%) fell after seven straight months of gains—slowing global economic growth amid growing uncertainties around new COVID-19 variants, Evergrande contagion, energy supply issues in Europe and China, and global supply chain difficulties giving rise to higher inflation all dampened enthusiasm
- Emerging markets (-4.0%) were dragged lower by Brazil (-13.0%) after the central bank raised interest rates for the fifth time this year—while China (-5.0%) underperformed as economic data signalled its first post-COVID contraction and growing concerns for energy supply constraints and the potential fallout over Evergrande
- Materials (-7.1%) continued to fall as most commodities tumbled on a combination of US dollar strength and weaker global growth expectations—additional weakness came from information technology (-5.7%), utilities (-6.3%) and communication services (-5.8%) with only the energy sector (+9.0%) positive on supply concerns for oil and gas driving prices higher
- Industrial commodities iron ore (-24.9%) and copper (-6.2%) fell on concerns of a slowdown in Chinese economic growth compounded by Chinese power supply constraints as oil (+7.6%), gas (+87.5%) and coal (+53.4%) rose sharply as alternatives—precious metals platinum (-4.8%), palladium (-22.6%), silver (-10.5%) and gold (-3.3%) moved lower on US dollar strength, with palladium impacted by continued auto production problems
- The fund’s Chinese holdings, communication services and discretionary sector holdings were the primary drivers of the fund’s relative underperformance—negative short-term sentiment continued to grip Chinese equities, but in our view these businesses present exceptional long-term value as they trade at deep discounts to their long-term earnings fundamentals
- The rand (-3.8% vs the US dollar) weakened on broad-based dollar strength and negative emerging market sentiment with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates—the currency remains vulnerable as the short-term platinum group metals price terms of trade bonus starts to dissipate
The standard charge rate is a fixed fee of 0.35% plus VAT. A 0.85% fixed amount fee plus 15% performance sharing fee is charged in the Foord Global Equity Fund.
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