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Foord Global Equity Feeder Fund

CLOSED TO NEW INVESTMENT

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 (to 30/Sep) 1.8 14.4 4.5

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 7.2
Tencent Holdings Equity HK 4.8
JD.Com Inc Equity US 4.3
Freeport-McMoran Inc Equity US 3.7
Nutrien Equity US 3.2
Elanco Animal Health Inc Equity US 3.0
Baidu Inc Equity US 2.9
Alibaba Group Holding Ltd Equity HK 2.6
Pan American Silver Corp Equity US 2.5
Unilever NV-CVA Equity NL 2.4
Commentary

Monthly Commentary – September 2021

  • Global equities (-4.1%) fell after seven straight months of gains—slowing global economic growth amid growing uncertainties around new COVID-19 variants, Evergrande contagion, energy supply issues in Europe and China, and global supply chain difficulties giving rise to higher inflation all dampened enthusiasm
  • Emerging markets (-4.0%) were dragged lower by Brazil (-13.0%) after the central bank raised interest rates for the fifth time this year—while China (-5.0%) underperformed as economic data signalled its first post-COVID contraction and growing concerns for energy supply constraints and the potential fallout over Evergrande
  • Materials (-7.1%) continued to fall as most commodities tumbled on a combination of US dollar strength and weaker global growth expectations—additional weakness came from information technology (-5.7%), utilities (-6.3%) and communication services (-5.8%) with only the energy sector (+9.0%) positive on supply concerns for oil and gas driving prices higher
  • Industrial commodities iron ore (-24.9%) and copper (-6.2%) fell on concerns of a slowdown in Chinese economic growth compounded by Chinese power supply constraints as oil (+7.6%), gas (+87.5%) and coal (+53.4%) rose sharply as alternatives—precious metals platinum (-4.8%), palladium (-22.6%), silver (-10.5%) and gold (-3.3%) moved lower on US dollar strength, with palladium impacted by continued auto production problems
  • The fund’s Chinese holdings, communication services and discretionary sector holdings were the primary drivers of the fund’s relative underperformancenegative short-term sentiment continued to grip Chinese equities, but in our view these businesses present exceptional long-term value as they trade at deep discounts to their long-term earnings fundamentals
  • The rand (-3.8% vs the US dollar) weakened on broad-based dollar strength and negative emerging market sentiment with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates—the currency remains vulnerable as the short-term platinum group metals price terms of trade bonus starts to dissipate
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.

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