Foord Global Equity Fund (Singapore)
For long-term investors in global equity securities
INVESTMENT OBJECTIVE
The fund aims to achieve optimum risk-adjusted returns by investing in a diversified portfolio of global equities and related securities. It seeks to outperform the MSCI All Country World Net Total Return Index after fees, without assuming greater risk.
FOR INVESTORS
- With a moderate to high risk profile
- Seeking long-term capital growth
- And able to withstand investment volatility in the short to medium term.
REGISTERED COUNTRIES
Singapore, South Africa.
| Year | Fund Return % | Benchmark Return % |
|---|---|---|
| 2012 (from 01/Jun) | 12.4 | 15.3 |
| 2013 | 18.7 | 22.8 |
| 2014 | -6.4 | 4.2 |
| 2015 | -2.2 | -2.4 |
| 2016 | 1.9 | 7.9 |
| 2017 | 25.8 | 24.0 |
| 2018 | -16.0 | -9.4 |
| 2019 | 26.5 | 26.6 |
| 2020 | 24.9 | 16.3 |
| 2021 (to 31/Oct) | 4.9 | 16.8 |
| Benchmark |
MSCI All Country World Total Return Index. |
| Time horizon |
Longer than five years. |
| Inception date |
1 June 2012 |
| Initial subscription amount |
US$10,000 or equivalent |
| Subsequent subscription amount |
US$ 1,000 or equivalent |
| Signification restrictions |
Complies with the Code on collective investment scheme issued by the Monetary Authority of Singapore. |
| Income distributions |
A roll-up fund with income being reinvested in the portfolio. |
| Income characteristics |
Zero income yield as it does not distribute its income. |
| Portfolio orientation |
Investing in quality global equities that presents compelling long-term investment value.Global equity exposure typically between 90% and 100%, with balance invested in cash and money market instruments. The fund is actively managed and not constrained by the benchmark in its portfolio positioning. |
| Risk considerations |
The fund is priced in US dollars. Among others, investment value is subject to foreign exchange risk, market risk and interest rate risk, and credit risk of the issuers. |
| Risk of loss |
Moderate to high in periods shorter than five years. Subject to market volatility, lower in longer term. |
| Security description | Asset class | Market | Portfolio weight % |
|---|---|---|---|
| Alphabet Inc | Equity | US | 7.6 |
| Tencent Holdings Ltd | Equity | HK | 4.7 |
| JD.Com Inc - ADR | Equity | US | 4.4 |
| Freeport-McMoran Inc | Equity | US | 4.1 |
| Nutrien Ltd | Equity | US | 3.3 |
Monthly Commentary – October 2021
- Global equities (+5.1%) rebounded from September’s losses—investors shrugged off recurring evidence of supply-chain bottlenecks and a potential peak in corporate margins
- US bourses (+6.9%) outperformed as S&P500 corporate earnings growth (+38% year-on-year) surpassed expectations—European stocks (+4.5%) also rose despite energy concerns from stubbornly high gas prices in the lead up to winter
- Emerging markets (+1.0%) underperformed, with India (-0.8%), Korea and Brazil (-9.0%) falling for the fourth consecutive month—Chinese bourses (+3.2%) rose on a reprieve in US/China geopolitical tensions and the abatement of new regulatory pressures and diminishing Evergrande related contagion risks
- Consumer discretionary (+8.0%) (on strong earnings and improving China sentiment), information technology (+6.7%) and energy (+6.4%) led equity markets higher—financials (+5.7%) were higher on strong third-quarter earnings and rising rate hike expectations
- Industrial commodities, iron ore (+1.3%), copper (+7.0%) and oil (+7.5%) continued higher while gas (-21.6%) and Chinese thermal coal (-22.9%) fell on potential Russian gas supply increases and Chinese coal pricing intervention—precious metals platinum (+5.7%), palladium (+4.8%), silver (+11.5%) and gold (+1.6%) all moved higher
- Fund outperformance of the index was driven primarily by the fund’s Chinese holdings, communication services and materials as sentiment for Chinese equities began to improve and inflation concerns drove commodity prices higher—the managers expect commodity prices to be supported in the medium term by persistent inflation
Management fee (percentage of the applicable Net Asset Value per share) Class B: 0.85% + 15% of performance fee.
The annual fee comprises a fixed standard fee plus a performance fee, subject to an overall minimum.
The annual fee may be adjusted up daily, subject to fulfilling the performance conditions.
Performance fee is chargeable only when the portfolio performance exceeds the benchmark and the high-water mark ("HWM") is exceeded.
Should the portfolio underperform, it must first recover the underperformance since the last HWM before performance fees are payable.
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Insights
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The Case for Commodities
Foord portfolio manager, Ishreth Hassen, discusses the case for commodities.
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Staying the course
“When adversity strikes, that's when you have to be the most calm. Take a step back, stay strong, stay grounded and press on.” — LL Cool J. Portfolio manager NANCY HOSSACK revisits the thesis that share volatility…