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 |
| 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 % |
|---|---|---|---|
| JD.Com Inc | Equity | US | 5.5 |
| IPG Photonics Corporation | Equity | US | 4.9 |
| Tencent Holdings | Equity | HK | 4.5 |
| Alphabet Inc | Equity | US | 4.2 |
| Extended Stay America Inc | Equity | US | 3.9 |
| Freeport-McMoran Inc | Equity | US | 3.7 |
| Baidu Inc | Equity | US | 3.5 |
| AIA Group Ltd | Equity | HK | 3.0 |
| Nutrien | Equity | US | 2.4 |
| Wheaton Precious Metals | Equity | US | 2.4 |
Monthly Commentary – December 2020
- Global equities (+4.6%) continued rising—buoyed by the COVID-19 vaccines rollout commencing in multiple countries and passage in the US of the $900 billion pandemic stimulus bill and government funding plan
- US equity markets (+4.1%) gained despite accelerating COVID-19 infections—market is anticipating a better 2021 given the COVID-19 vaccine roll outs and potentially more stimulus under the Biden administration
- European bourses (+4.7%) rose on the 11th hour Brexit trade deal, which helped avoid trade friction and others issues related to a no-deal Brexit—the start of the EU vaccination drive also heralded a possible return to normal this year
- The emerging market rally (+7.4%) gathered pace as vaccine news supported risk-on sentiment—boosting commodity prices and emerging markets including Brazil (+13.6%), India (+10.2%) and Russia (+10.1%)
- China (+2.8%) underperformed—on concerns about government antitrust investigations on Chinese internet companies
- Sector gains were led by the materials (+7.0%) and information technology (+6.9%) sectors—while real estate (+1.8%), utilities (+2.4%), industrial (+2.7%), consumer staples (+3.2%) and communication services (+3.7%) underperformed
- Fund performance was supported by contributions from Baidu (+55.6%), Moncler (+24.6%) and Freeport-McMoran (+11.2%)—Alphabet (-0.5%), Tencent (+0.2%) and Nutrien (-1.3%) were the detractors
- The rand (+5.0% vs the US dollar) gained on broad-based dollar weakness and positive emerging markets sentiment on COVID-19 vaccine news and expectations for accelerating global economic growth in 2021—despite recent dollar weakness, the rand (-5.0%) is weaker over 2020 and remains 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.
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