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Retirement Fund Portfolios – Domestic Balanced

Composite Characteristics

The Foord Domestic Balanced mandates invest in a wide selection of South African assets to provide a reasonably high level of growth while also providing a moderate level of income. These balanced portfolios are full discretion but managed to comply with the statutory investment limits prescribed for retirement funds in South Africa (Regulation 28) with the additional constraint of no foreign assets.

Investment objectives

To achieve net-of-fee returns in excess of the benchmark over rolling two year periods. The benchmark is the average of the Alexander Forbes SA Large Manager Watch Best Investment View (Non-Investable) performance survey.

Specific Restrictions

Regulation 28 regulates the spread of assets within a retirement fund’s investment portfolio. The major restrictions include a maximum of 75% in shares and 25% in property (maximum of 90% combined). This mandate has the additional restriction of no foreign assets allowed.

Differentiating Features

Diversified domestic balanced funds seek to maximise the long-term returns of retirement fund savings whilst preserving member capital in real terms through the typical business cycle. Being a full discretion, local assets only portfolio, the fund manager is able to use both asset allocation and stock selection decisions to achieve optimal long-term returns. Over time, Foord has managed to outperform the domestic balanced peer group over almost all rolling two-year periods. Importantly, the Foord domestic balanced portfolio has only underperformed the peer group on two brief occasions over the twelve year history. Both instances occurred when returns in absolute terms were relatively high and well in excess of inflation. The periods of highest outperformance are typically associated with relatively low absolute return environments – this is when good active asset allocation and stock selection are most required.

Availability

Minimum segregated account size: Negotiable from R1 billion
Alternative pooled fund: Foord Domestic Balanced Fund unit trust

Historic Investment Returns

The investment return information reflected below is in respect of a composite of institutional mandates managed on a segregated basis.

* Alexander Forbes SA Large Manager Watch Non Investible Mean Return

Contact us

For more information on Foord’s capabilities or to enquire about Foord’s product range please contact:

Nick Curtin
021 532 6917
nick.curtin@foord.co.za

William Fraser
021 532 6935
william.fraser@foord.co.za

Mike Soekoe
021 532 6906
mike.soekoe@foord.co.za

Paul Cluer
021 532 6925
paul.cluer@foord.co.za