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Foord Balanced Fund

Investment Objective

The fund aims to achieve the steady growth of income and capital as well as the preservation of real capital (capital as adjusted for inflation). The portfolio is managed to comply with the statutory investment limits set for retirement funds in South Africa (Regulation 28).

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Investor Profile

Investors whose risk tolerance is below that of a pure equity fund investor and those who require the asset allocation decision to be made for them, within prudential guidelines. Because the fund complies with Regulation 28, it is ideally suited to being a substantial component of any retirement savings portfolio and is especially suitable for retirement funds, pension fund members and holders of contractual savings products.

Performance history   Info

Fund Characteristics

Benchmark

The market value weighted average return of the South African - Multi Asset - High Equity unit trust sector, excluding Foord Balanced Fund.

significant restrictions

Maximum equity exposure of 75%; maximum offshore exposure of 25%; complies with pension fund investment regulations (Regulation 28).

Income Distributions

End-February and end-August each year.

Income Characteristics

Medium yield, approximately double that of a general equity fund. The income yield is affected by the level of performance fees accrued.

Portfolio Orientation

Typically a medium to high weighting in JSE shares and includes exposure to listed property securities, bonds, money market instruments and foreign assets.

Foreign Assets

Foreign asset exposure is obtained via the Foord International Fund (FIF) and Foord Global Equity Fund Luxembourg (FGEFL), sub-funds of Foord SICAV domiciled in Luxembourg and Foord Global Equity Fund (FGEF) domiciled in Singapore. FIF is a conservative, multi-asset class fund. FGEFL and FGEF comprise portfolios of global shares and cash. All funds are priced in US dollars.

Risk of loss

Lower than that of a pure equity fund. High in periods shorter than six months, lower in periods greater than one year.

Time Horizon

Longer than 3 years

Suitable Investors

Designed to comply with the limits imposed by Regulation 28 to the Pension Funds Act, the Foord Balanced Fund is suitable for pension funds, pension fund members, holders of contractual savings products such as retirement annuities and medium- to long-term investors saving for retirement.

Fee Structure

No initial fees are levied. The annual management fee is a performance fee with the daily charge rate adjusted up or down based on the fund’s one year rolling return relative to that of its benchmark. The fee at benchmark is 1.0% plus VAT, the performance fee sharing ratio is 10% and a minimum fee of 0.5% plus VAT applies.

Fund Manager

Minimum Investment

R50 000 lump sum or R1 000 per month