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 30/Apr)||22.6||12.5||1.6|
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||4.4|
|Wheaton Precious Metals||Equity||US||4.2|
|Activision Blizzard Inc||Equity||US||3.7|
|Wynn Macau Ltd||Equity||HK||2.8|
|AIA Group Ltd||Equity||HK||2.5|
Monthly Commentary – April 2020
- Global equity bourses (+10.7%) capped their best month since 1987 – unprecedented stimulus and flatter virus curves in the major economies bolstered hope for rebounding economic activity
- US markets (+13.1%) surged as the US Federal Reserve took further steps to avert economic collapse by providing $2.3 trillion to support households, businesses and local government – which includes $600 billion of credit support to small and mid-sized businesses
- Europe (+5.9%) underperformed due to its reliance on industrial activity as France’s economy contracted 5.8% month-on-month in the first quarter – its steepest decline since 1949 when records began
- Emerging markets (+9.2%) gained with their currencies and commodities despite more than 80 countries seeking IMF aid – Brazil (+5.4%) underperformed on poor COVID-19 management while India (+16.1%) outperformed as low oil prices improved the fiscal deficit
- Oil’s (+11.1%) volatility continued as May WTI contracts plunged into negative territory for the first time amid a lack of storage to take delivery – Saudi Arabia and Russia ended their oil-price war, agreeing to cut 10% of global supply for the next two months, nowhere near enough to offset the 25-30% collapse in near-term demand
- Fund outperformance expanded despite a high cash balance – Mesoblast (+157.7%) surged after its remestemcel-L treatment achieved meaningful results in treating a small sample of severe COVID-19 patients and progressed to comprehensive trials
- The rand (-3.9% vs the US dollar) weakened more as the economic shock of the extended lockdown compounds South Africa’s structural growth challenges – S&P downgraded SA debt further into sub-investment grade on forecasts of accelerating deterioration of public finances
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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