Foord International Fund
For conservative, absolute-return investors
INVESTMENT OBJECTIVE
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR INVESTORS
- With a moderate to high risk profile
- Seeking preservation of capital and safe investment growth.
REGISTERED COUNTRIES
Belgium, France, Japan, Luxembourg, Singapore, South Africa, Switzerland, United Kingdom.
| Year | Fund Return % | MSCI World Return % | US Inflation % |
|---|---|---|---|
| 1997 (from 10/Mar) | 9.1 | 13.1 | 1.3 |
| 1998 | 13.9 | 24.3 | 1.6 |
| 1999 | -11.7 | 24.9 | 2.7 |
| 2000 | 23.7 | -13.2 | 3.4 |
| 2001 | -4.0 | -16.8 | 1.6 |
| 2002 | 3.2 | -19.9 | 2.5 |
| 2003 | 21.1 | 33.1 | 2.0 |
| 2004 | 13.0 | 14.7 | 3.3 |
| 2005 | 5.8 | 9.5 | 3.3 |
| 2006 | 18.4 | 20.1 | 2.5 |
| 2007 | 12.7 | 9.0 | 4.1 |
| 2008 | -18.4 | -40.7 | 0.0 |
| 2009 | 18.8 | 30.0 | 2.8 |
| 2010 | 10.2 | 11.8 | 1.4 |
| 2011 | -1.1 | -5.5 | 3.0 |
| 2012 | 11.2 | 15.8 | 1.8 |
| 2013 | 15.1 | 26.7 | 1.5 |
| 2014 | -1.9 | 4.9 | 0.7 |
| 2015 | 1.9 | -0.9 | 0.7 |
| 2016 | 1.2 | 7.5 | 2.2 |
| 2017 | 15.5 | 22.4 | 2.0 |
| 2018 | -9.6 | -8.7 | 1.9 |
| 2019 | 17.0 | 27.7 | 2.3 |
| 2020 | 6.8 | 15.9 | 1.3 |
| 2021 | 2.8 | 21.8 | 7.0 |
| 2022 | 1.6 | -18.1 | 6.4 |
The use of MSCI benchmark is for performance comparison only
| Objective |
To achieve meaningful inflation-beating US dollar returns over a full investment cycle. |
| Time horizon |
Longer than five years. |
| Inception date |
2 April 2013 |
| Initial investment amount |
US$10,000 or equivalent |
| Subsequent subscription amount |
US$1,000 or equivalent |
| Significant restrictions |
Complies with UCITS regulation. In addition, the Fund cannot enter into total return swaps, securities lending transactions, repurchase transactions or reverse repurchase transactions or any other securities financing transactions. Only listed derivatives can be used for efficient portfolio management. |
| Income distributions |
A roll-up fund with income being reinvested in the portfolio. |
| Income characteristics |
Zero income yield as it does not distribute its income. |
| Portfolio orientation |
Flexible asset allocation across different asset classes - global equities, listed commodity securities, interest-bearing securities, cash and money market instruments - to achieve its objective. The fund is actively managed without any reference to a benchmark. The Manager actively decides the composition of its portfolio including regional allocation, sector views and overall level of exposure to the market in order to take advantage of investment opportunities.
|
| Risk considerations |
The fund is priced in US dollars. Among others, investment value is subject to foreign exchange risk, market risk and interest rate risk, and credit risk of the issuers. |
| Risk of loss |
Moderate to high in periods shorter than five years. Subject to market volatility, lower in longer term. |
| Security description | Asset class | Country of Listing | Portfolio weight % |
|---|---|---|---|
| FMC Corp | Equity | US | 6.7 |
| SSE PLC | Equity | GB | 5.1 |
| ETFS Physical Gold | Commodity | GB | 5.0 |
| Activision Blizzard Inc | Equity | US | 5.0 |
| Freeport-McMoran Inc | Equity | US | 4.8 |
Monthly Commentary – December 2022
- Developed market equities (-4.2%) declined — as hawkish central bank rhetoric on quelling inflation, which is now apparent in the services sectors, clashed with investor optimism on softer CPI prints
- Emerging markets (-1.4%) outperformed on a further rebound in Chinese (+5.2%) stocks — China has markedly reversed course on its zero-COVID policy, reopening far more quickly than even optimistic investors expected
- Developed market bond yields rose — as US Fed Chair Powell reminded market participants that a slowing pace of interest rate increases should not be construed as weakened resolve to tackle inflation
- Precious metals including gold (+3.1%) and silver (+5.4%) rose further, simultaneously boosted by US dollar weakness and the (potential) peaking of nominal yields — oil (+0.6%) was little changed as concerns for a global economic slowdown were partially assuaged by China’s belated reopening
- The US dollar further tempered its previously extended strength, weakening against the euro (+3.7%), British pound (+1.0%) and Japanese yen (+5.8%) — the probability of having moved past peak interest rate differentials has strengthened alternative hard currencies
- The fund’s short S&P 500 futures hedge contributed most to returns in a falling market, supported by Wharf Real Estate (+26.5%) and Wynn Macau (+46.1%) on China’s zero-COVID U-turn — while the investment in Livent (-29.0%) detracted
- The fund (+1.3%) was positive for the month despite the market declines — ditto for the year (+2.0%), with astute asset allocation protecting investors against the global equity (-18.1%) and bond (-18.3%) market rout, capping the worst year for stocks and bonds combined in 150 years
Management Fee (Percentage of the applicable Net Asset Value per share)
Class B: 1.00% (Institutional investors)
Class R: 1.00% (Retail investors)
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with the Foord International Fund.
Insights
24 Jan 2023
China - Why We Are Cautiously Optimistic
Brian Arcese and JC Xue discuss the investability of China, the conviction Foord has around the quality of businesses they own and the valuations they own them at.
24 Jan 2023
Foord Global Equity Fund Q4 2022 Commentary
Ishreth Hassen, portfolio manager on the Foord Global Equity Fund provides an update on the fund's performance through Q4 2022.