Foord Global Equity Feeder Fund

Monthly Commentary – March 2021

• Global equities (+2.7%) rose on expectations for accelerating global growth following vaccine rollouts—underpinned by further stimulus measures and ongoing accommodative monetary policy
• US share markets (+3.7%) rallied as President Biden signed a $1.9 trillion pandemic relief bill and announced his proposal for a $2 trillion infrastructure plan—economic data also continued to surprise on the upside
• European bourses (+3.1%) gained as cyclicals rallied on higher bond yields—even as markets await clarity on the timing of the EU’s $880 billion recovery package
• Emerging markets (-1.5%) underperformed as the dollar strengthened—weighed by rising cases of new COVID-19 strains, regulatory scrutiny on US-listed Chinese ADRs (-6.3%) and Turkish central bank turmoil (-15.8%)
• Defensives and cyclicals led the sector gains—utilities (+7.4%), consumer staples (+6.1%) and industrials (+5.7%) outperformed, while information technology (+0.7%) lagged
• Industrial commodities oil (-3.9%) and copper (-2.2%) retraced on dollar strength—precious metals gold (-0.8%) and silver (-10.1%) declined on the opportunity cost of higher bond yields and the benign inflation outlook from central banks
• America’s largest long-term stay hospitality business Extended Stay (+23.4%) was the biggest positive contributor as Blackstone and Starwood offered to acquire the business for $19.5 per share—investment in Chinese tech names and the S&P hedges were the biggest detractors this 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 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.