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|
|2022 (to 30/Apr)||-11.1||-13.8||1.9|
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 %|
|Pan American Silver Corp||Equity||US||3.2|
|Alibaba Group Holding Ltd||Equity||HK||2.9|
|BioMarin Pharmaceutical Inc||Equity||US||2.8|
|TGS NOPEC Geophysical Co||Equity||NO||2.7|
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
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.