Retirement Fund Portfolios – Full Discretion
These mandates invest in a mix of local and foreign asset classes and are managed to comply with the prudential requirements of the South African Pension Funds Act (Regulation 28). They are fully balanced portfolios reflecting Foord’s best investment view for discretionary retirement fund portfolios in terms of asset allocation and security selection, while typically maintaining an equity bias.
To exceed the South African inflation rate by 5% per annum over any rolling five-year period.
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 a maximum foreign asset exposure. Foreign asset exposure was first included from 1997 and is currently limited to a maximum of 25% of the portfolio. Other restrictions also apply.
When saving for retirement it is critical that the buying power of retirement savings is maintained. This means that the long-term returns achieved on the retirement fund portfolio must at the very least exceed inflation. In managing retirement portfolios, Foord focuses on achieving returns exceeding inflation plus 5% per annum over any rolling five-year period. The graph below reflects our success: the actual return achieved for clients over any rolling five-year period has never dipped below the level of South African inflation. The buying power of capital was therefore protected. More importantly, in almost all cases since 1989, the returns achieved for clients have comfortably exceeded inflation plus 5% per annum.
Minimum segregated account size: Negotiable from R1 billion
Alternative pooled fund: Foord 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. The composite returns include the returns of the Foord Balanced Fund unit trust, which commenced on 1 September 2002.
* Currently 55% FTSE/JSE ALSI; 20% BEASSA All Bond; 9% MSCI World Equity; 6% SB World Bond; 5% JSE Real Estate; 5% AF Money Market