Congratulations To Leap School Matric Class Of 2015

The LEAP Science and Maths School matric classes of 2015 has delivered the highest level of achievement in the 11-year history of the organisation.

Don't Chop And Change

The powerful emotions of greed and fear mean that it is simply human nature to chase the best returns. As a result, investors often fall into the trap of disinvesting from an underperforming fund to invest in one that outperformed over the same period. Studies abound on the folly of such an investment strategy. For example, a seminal US study showed that frequent trading eroded investor returns by up to 2.7% per annum. ADELE JANKOWITZ puts the Foord Equity Fund to the test.

FOREWORD | ISSUE 36 | 4th QUARTER 2015

<p></p>

Sweet Performance From SA's Top General Equity Funds

Despite the market crash in 2008, the last decade has been a very rewarding one for equity investors. Even with that dip, the FTSE/JSE All Share Index (Alsi) has delivered an annualised return of more than 15% since September 2005.

Now Tax Free - Foord Flexible Fund

Foord now offers tax free investment accounts in the Foord Flexible Fund, Foord’s best investment view fund. Tax free investment accounts, into which South African investors can contribute up to R30 000 per year tax free, are only available to existing Foord unit trust investors. Those already invested in tax free investment accounts in either the Foord Balanced Fund or the Foord Equity Fund may now also choose to switch their tax free investment to the Foord Flexible Fund, without any tax consequence.

Crystal Ball Investing

“Crystal ball investing” appropriately invokes images of smoke and mirrors, charlatanism and faux clairvoyance. None of these has any place in investment practice, as JULIE MACLEOD-HENDERSON explains.

Good Governance

Environmental, Social and Governance (ESG) considerations have gained prominence in investment circles over the last decade. NICK CURTIN explains how ESG principles have formed a part of Foord’s DNA for decades.

FOREWORD | ISSUE 35 | 3rd QUARTER 2015

<p></p>

Consistent Top Ranking Returns

Consistency is key to long-term investment success. Recent unit trust performance data released by Morningstar highlight the consistency of Foord’s long-term track records across all its flagship investment strategies for periods ended 31 May 2015.

Foord International Fund

The Foord International Fund (FIF) was launched as a global equity fund in 1997 when South African exchange controls were first relaxed. It was a tumultuous time for global equity markets. Price-earnings multiples (PEs) on the S&P 500 Index in the USA had been rising steadily. PEs on the S&P 500 grew from around 15-times earnings in 1995 to around 20-times earnings when the fund commenced. They headed even higher as investors speculated in the dot-com bubble leading up to the early 2000s.