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South African Equity Portfolios

Composite Characteristics

These mandates invest exclusively in shares listed on the Johannesburg Stock Exchange. The investment bias is towards long-term value with some scope for opportunistic holdings from time to time. Mandates in this composite are managed using the Foord multiple-counsellor system. The multiple-counsellor system spreads each mandate amongst two or more participating portfolio managers, who manage their portions independently of the other managers. The result: reduced key man risk, more concentrated individual portfolios, better overall diversification and improved performance.

Investment objectives

Through active management, to exceed the total return of the JSE All Share Index by 5% per annum over rolling five-year periods, without assuming greater risk.

Specific Restrictions

These funds are fully invested in listed South African equities.

Differentiating Features

History has shown that equity-only mandates typically provide the best long-term returns – but they come with the greatest volatility of returns. Foord’s investment focus is on absolute value investing in all mandates – that is, aiming to avoid losses in any rolling 12-month period. This is more challenging in volatile, single asset class mandates such as equity-only portfolios. However, risk of loss can be reduced substantially by: emphasising long-term investment (buy and hold); diversification of holdings across sectors, industries and companies; and investing at the right price in quality companies that are likely to be operating successfully for decades to come. The graph below reflects our success managing downside risk for clients in the SA equity-only composite. The graph shows the relative performance of the Foord Equity composite against the ALSI (Y axis) on a monthly basis since its inception in February 2000. The data is split between months when the ALSI was negative (red bars) and months when the ALSI was positive (green bars). It unquestionably demonstrates Foord’s ability to protect downside risk in equity mandates, with material outperformance of the market during times of market weakness, and an ability of the composite to “hold its own” during bull phases.

Availability

Minimum segregated account size: Negotiable from R1 billion
Alternative pooled fund: Foord Equity 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 Equity Fund unit trust, which commenced on 1 September 2002.

* Total return of the FTSE/JSE All Share Index

Contact us

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

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