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Foord Global Equity Feeder Fund

CLOSED TO NEW INVESTMENT

For long-term investors in global equity securities

 

INVEST NOW

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.

Performance

Returns
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/Jun) 6.2 9.2 2.7

Characteristics
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

Top 10
Security description Asset class Market Portfolio weight %
Alphabet Inc Equity US 5.9
JD.Com Inc Equity US 4.6
Tencent Holdings Equity HK 3.9
IPG Photonics Corporation Equity US 3.4
Baidu Inc Equity US 3.3
Alibaba Group Holding Ltd Equity HK 3.2
Nutrien Equity US 3.2
Freeport-McMoran Inc Equity US 3.1
Elanco Animal Health Inc Equity US 3.0
Pan American Silver Corp Equity US 2.7
Commentary

Monthly Commentary – June 2021

  • Global equities (+1.4%) took fright when the US Federal Reserve brought forward to 2023 the date by when it expected US interest rates would first rise—but later settled as the Fed downplayed inflation, supported by positive economic data and vaccination rollout
  • US bourses (+2.8%) outperformed as inflation fears abatedFed Chairman Powell noted that price increases have been sharpest in sectors linked to the reopening of the economy and should be transitory rather than structural
  • European indices (-1.5%) underperformed amid the rapid spread of the COVID-19 delta variant—Eurozone inflation leapt to 2% in May, surpassing the ECB’s target for the first time in two years
  • Emerging markets (+1.3%) rose, led by oil exporters Brazil (+5.5%) and Russia (+4.1%)—China’s (+1.6%) producer-price index rose 9% year-on-year, its fastest pace since 2008, driven by the higher cost of commodity imports
  • 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
  • Interest rate sensitive sectors, materials (-3.7%), financials (-3.4%) and utilities (-3.1%) lagged—information technology (+6.2%), energy (+3.3%) and healthcare (+3.0%) outperformed
  • Digital media giant Alphabet (+3.9%), China e-commerce company JD.Com (+7.9%) and bioproduction tools and services company Biolife Solutions (+33.6%) were the top performance contributors—partially offset by copper miner Freeport-McMoran (-13.1%) and silver miner Pan American Silver (-15.1%)
  • The rand (-4.0% vs the US dollar) retraced some of 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 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.

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 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.

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