Foord Global Equity Feeder Fund
CLOSED TO NEW INVESTMENT
For long-term investors in global equity securities
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|
|2020 (to 31/Jul)||27.6||18.9||1.4|
The ZAR equivalent of MSCI All Country World Total Return Index.
Longer than three years.
2 May 2014
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord Global Equity Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord Global Equity Fund is a roll-up fund and does not distribute its income.
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 %|
|IPG Photonics Corporation||Equity||US||4.7|
|Wheaton Precious Metals||Equity||US||4.2|
|AIA Group Ltd||Equity||HK||3.0|
|Elanco Animal Health Inc||Equity||US||2.3|
|Wynn Macau Ltd||Equity||HK||2.2|
Monthly Commentary – July 2020
- Global equities (+5.3%) advanced as earnings season produced better-than-feared results—hopes for a COVID-19 vaccine grew as pharmaceutical companies reported promising early trial results
- US markets (+5.9%) gained as Republicans presented a new $1 trillion fiscal stimulus package and the Federal Reserve extended its lending support programme to non-profit organisations—as daily virus numbers reached new highs and deaths resumed an uptrend in a second wave of infections
- European bourses (+3.8%) gained even as the economy deteriorated—German (+5.0%) second-quarter GDP fell most since records began in 1970
- Emerging markets (+8.9%) outperformed on dollar weakness, led by Brazil (+14.2%), India (+10.4%) and China (+9.4%)—the Chinese recovery gained momentum as geopolitical tensions worsened amid the closure of the Chinese consulate in Houston on claims of economic espionage
- The US dollar index (-4.4%) had its worst month since 2010, prompting technical break-outs in gold (+9.5%) and silver (+34.9%)—most commodities including copper (+6.8%) and oil (+5.2%) gained, supported by US and European stimulus announcements
- All sectors other than energy (-2.0%) rose—consumer discretionary (+8.2%), materials (+8.0%) and IT (+7.1%) gained the most
- Fund outperformance was sustained despite the very narrow market—the top five US tech companies have gained more than 35% this year and now account for 20% of the S&P 500, while the index’s remaining constituents have fallen approximately 5% in an increasingly bifurcated and risky market
- The rand (+1.6%) appreciated on positive emerging market sentiment and dollar weakness but has declined 17.9% against the greenback this year—the currency remains vulnerable in the long-term given South Africa's structural economic weaknesses
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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