Foord Global Equity Fund (Singapore)
For long-term investors in global equity securities
INVESTMENT OBJECTIVE
The fund aims to achieve optimum risk-adjusted returns by investing in a diversified portfolio of global equities and related securities. It seeks to outperform the MSCI All Country World Net Total Return Index after fees, without assuming greater risk.
FOR INVESTORS
- With a moderate to high risk profile
- Seeking long-term capital growth
- And able to withstand investment volatility in the short to medium term.
REGISTERED COUNTRIES
Singapore, South Africa.
| Year | Fund Return % | Benchmark Return % |
|---|---|---|
| 2012 (from 01/Jun) | 12.4 | 15.3 |
| 2013 | 18.7 | 22.8 |
| 2014 | -6.4 | 4.2 |
| 2015 | -2.2 | -2.4 |
| 2016 | 1.9 | 7.9 |
| 2017 | 25.8 | 24.0 |
| 2018 | -16.0 | -9.4 |
| 2019 | 26.5 | 26.6 |
| 2020 | 24.9 | 16.3 |
| 2021 | 2.2 | 18.5 |
| 2022 (to 30/Apr) | -10.4 | -12.9 |
| Benchmark |
MSCI All Country World Total Return Index. |
| Time horizon |
Longer than five years. |
| Inception date |
1 June 2012 |
| Initial subscription amount |
US$10,000 or equivalent |
| Subsequent subscription amount |
US$ 1,000 or equivalent |
| Signification restrictions |
Complies with the Code on collective investment scheme issued by the Monetary Authority of Singapore. |
| 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 |
Investing in quality global equities that presents compelling long-term investment value.Global equity exposure typically between 90% and 100%, with balance invested in cash and money market instruments. The fund is actively managed and not constrained by the benchmark in its portfolio positioning. |
| 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 % |
|---|---|---|---|
| Freeport-McMoran Inc | Equity | US | 4.3 |
| Tencent Holdings Ltd | Equity | HK | 4.2 |
| JD.Com Inc - ADR | Equity | US | 4.0 |
| Alphabet Inc | Equity | US | 3.2 |
| Pan American Silver Corp | Equity | US | 3.2 |
Monthly Commentary – April 2022
- Global equities (-8.0%) slumped on US Federal Reserve communications that indicated more aggressive interest rates interventions to tackle persistently high inflation — while strict city-wide Chinese lockdowns continue to pressure supply chains and the Russia-Ukraine war distorts energy and commodity markets
- All developed markets ended lower, with US bourses (-9.1%) and European stocks (-5.8%) leading the declines — New Zealand equities (-9.5%) fell sharply as the central bank aggressively raised rates by 50bps
- Emerging markets (-5.6%) were mostly lower with some exceptions — materials exposed South American markets Chile (-12.3%), Peru (-17.3%) and Brazil (-13.7%) were sharply down on inflation concerns and commodity retracement
- All sectors were lower apart from defensive consumer staples (+0.4%) — although the fall in the energy sector (-1.3%) was relatively small after three months of gains and the sector is the only one with a positive year-to-date return
- The selloff in growth sectors picked up pace with tech (-11.7%), consumer discretionary (-11.0%) and communication services (-12.5%) lower — as the risk of higher rates and lower-than-expected earnings guidance pressured growth prospects
- Oil (+1.3%) gained marginally but was volatile intramonth with prices driven by uncertainty on supply, strategic reserves and Russian sanctions — soft commodities including wheat (+3.8%), soybean (+5.6%) and corn (+9.3%) rose as weather, the Ukraine war and high fertilizer costs were worries for crop yields
- Precious metals gold (-2.0%) and silver (-5.5%) declined — non-interest bearing metals face competition from fixed instruments whose real yields have finally risen above zero on speculation for more aggressive US Federal Reserve tightening
- The fund outperformed the index — driven by consumer staples, energy and consumer discretionary allocations
Management fee (percentage of the applicable Net Asset Value per share) Class B: 0.85% + 15% of performance fee.
The annual fee comprises a fixed standard fee plus a performance fee, subject to an overall minimum.
The annual fee may be adjusted up daily, subject to fulfilling the performance conditions.
Performance fee is chargeable only when the portfolio performance exceeds the benchmark and the high-water mark ("HWM") is exceeded.
Should the portfolio underperform, it must first recover the underperformance since the last HWM before performance fees are payable.
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