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Foord Global Equity Feeder Fund

Available to invest in via the Prescient Foord Global Equity Feeder Fund

For long-term investors in global equity securities

 

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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 10.5 28.8 5.9
2022 (to 30/Apr) -11.1 -13.8 1.9

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 %
Freeport-McMoran Inc Equity US 4.3
Tencent Holdings Equity HK 4.2
JD.Com Inc Equity US 4.0
Alphabet Inc Equity US 3.2
Pan American Silver Corp Equity US 3.2
Nutrien Equity US 3.2
Edison International Equity US 3.0
Alibaba Group Holding Ltd Equity HK 2.9
BioMarin Pharmaceutical Inc Equity US 2.8
TGS NOPEC Geophysical Co Equity NO 2.7
Commentary

Monthly Commentary – April 2022

  • Global equities (-8.0%) slumped on US Federal Reserve communications that indicated more aggressive interest rates interventions to tackle persistently high inflation — while strict city-wide Chinese lockdowns continue to pressure supply chains and the Russia-Ukraine war distorts energy and commodity markets
  • All developed markets ended lower, with US bourses (-9.1%) and European stocks (-5.8%) leading the declines —   New Zealand equities (-9.5%) fell sharply as the central bank aggressively raised rates by 50bps
  • Emerging markets (-5.6%) were mostly lower with some exceptions — materials exposed South American markets Chile (-12.3%), Peru (-17.3%) and Brazil (-13.7%) were sharply down on inflation concerns and commodity retracement
  • All sectors were lower apart from defensive consumer staples (+0.4%) — although the fall in the energy sector (-1.3%) was relatively small after three months of gains and the sector is the only one with a positive year-to-date return 
  • The selloff in growth sectors picked up pace with tech (-11.7%), consumer discretionary (-11.0%) and communication services (-12.5%) lower — as the risk of higher rates and lower-than-expected earnings guidance pressured growth prospects
  • Oil (+1.3%) gained marginally but was volatile intramonth with prices driven by uncertainty on supply, strategic reserves and Russian sanctions — soft commodities including wheat (+3.8%), soybean (+5.6%) and corn (+9.3%) rose as weather, the Ukraine war and high fertilizer costs were worries for crop yields
  • Precious metals gold (-2.0%) and silver (-5.5%) declined — non-interest bearing metals face competition from fixed instruments whose real yields have finally risen above zero on speculation for more aggressive US Federal Reserve tightening 
  • The master fund outperformed the index — driven by consumer staples, energy and consumer discretionary allocations
  • The rand (-8.1% vs the US dollar) sharply retraced some of its recent gains in line with other emerging market commodity exporters and broad based US dollar strength — the currency is vulnerable to a reversal in the commodity export-driven terms of trade support
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.

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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.

Insights

25 May 2022

How does Foord manage risk in the Foord Flexible Fund?

Dave Foord discusses how diversification is used to manage risk in the Foord Flexible Fund.

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25 May 2022

What hedging strategies are employed in the Foord Flexible Fund especially on currency risk?

Dave Foord discusses what hedging strategies are employed in the Foord Flexible Fund, especially on currency risk.

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