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/Sep)||26.4||21.2||2.6|
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|
|ICS USD Fund||Cash||IE||3.9|
|Wheaton Precious Metals||Equity||US||3.7|
|AIA Group Ltd||Equity||HK||3.2|
|Extended Stay America Inc||Equity||US||3.2|
|Elanco Animal Health Inc||Equity||US||2.7|
Monthly Commentary – September 2020
- Global equities (-3.2%) fell for the first time in six months, weighed down by benchmark-heavy tech stocks—a wave of IPOs, M&A and stock splits typically evident of excessive liquidity characterised the month
- US equities (-3.8%) declined on disappointing macroeconomic data and expiring stimulus measures—America’s unemployment rate is still high at 8.4%, with retail sales growth slowing dramatically in August
- The US dollar strengthened against most majors, weighing on emerging markets and commodities—gold (-4.1%) retraced some of its recent gains and oil (-9.6%) tumbled after Saudi Arabia cut prices for major customers
- Emerging markets (-1.6%) displayed mixed performance—commodity consumers such as India (+0.6%) (also on rumours of more stimulus) faring better than commodity producers such as Brazil (-7.1%) and Russia (-7.4%)
- On the geopolitical front, tensions between the US and China (-2.7%) remain elevated—the Pentagon said it would extend export restrictions to China’s biggest semiconductor manufacturer SMIC
- All sectors fell—energy (-12.1%), financials (-5.3%) and communication services (-5.1%) performed worst
- The fund performed in line with its benchmark—its non-tech Chinese investments mostly added value, while core holdings Alphabet (-10.1%) and Wheaton Precious Metals (-8.1%) weighed on performance
- The managers raised cash and added to portfolio hedges ahead of the volatility—market valuation levels remain stretched given the prevailing macroeconomic environment
- The rand (+1.1% vs the US dollar) gained materially against the dollar but lost ground latterly—on risk off sentiment as fears of renewed European COVID-19 lockdowns mounted
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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