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|
|2021 (to 30/Jun)||6.2||9.2||2.7|
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||3.4|
|Alibaba Group Holding Ltd||Equity||HK||3.2|
|Elanco Animal Health Inc||Equity||US||3.0|
|Pan American Silver Corp||Equity||US||2.7|
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 abated—Fed 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
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.