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 higher 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 (to 30/Sep) | -0.8 | 11.1 |
| 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. |
| 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 % |
|---|---|---|---|
| Alphabet Inc | Equity | US | 7.3 |
| Tencent Holdings Ltd | Equity | HK | 4.8 |
| JD.Com Inc - ADR | Equity | US | 4.3 |
| Freeport-McMoran Inc | Equity | US | 3.7 |
| Nutrien Ltd | Equity | US | 3.2 |
Monthly Commentary – September 2021
- Global equities (-4.1%) fell after seven straight months of gains—slowing global economic growth amid growing uncertainties around new COVID-19 variants, Evergrande contagion, energy supply issues in Europe and China, and global supply chain difficulties giving rise to higher inflation all dampened enthusiasm
- US bourses (-4.8%) underperformed as tapering considerations pushed rates higher and economic growth concerns grew—European stocks (-4.8%) fell as energy concerns, supply chain bottlenecks and component shortages hurt production
- Emerging markets (-4.0%) were dragged lower by Brazil (-13.0%) after the central bank raised interest rates for the fifth time this year—while China (-5.0%) underperformed as economic data signalled its first post-COVID contraction and growing concerns for energy supply constraints and the potential fallout over Evergrande
- Materials (-7.1%) continued to fall as most commodities tumbled on a combination of US dollar strength and weaker global growth expectations—additional weakness came from information technology (-5.7%), utilities (-6.3%) and communication services (-5.8%) with only the energy sector (+9.0%) positive on supply concerns for oil and gas driving prices higher
- Industrial commodities iron ore (-24.9%) and copper (-6.2%) fell on concerns of a slowdown in Chinese economic growth compounded by Chinese power supply constraints as oil (+7.6%), gas (+87.5%) and coal (+53.4%) rose sharply as alternatives—precious metals platinum (-4.8%), palladium (-22.6%), silver (-10.5%) and gold (-3.3%) moved lower on US dollar strength, with palladium impacted by continued auto production problems
- The fund’s Chinese holdings, communication services and discretionary sector holdings were the primary drivers of the fund’s relative underperformance—negative short-term sentiment continued to grip Chinese equities, but in our view these businesses present exceptional long-term value as they trade at deep discounts to their long-term earnings fundamentals
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) by the performance fee, calculated as the difference between the portfolio performance and the benchmark return for the same period multiplied by the performance fee sharing rate.
Initial fees: NONE
Annual fee: 0.85% + 15% of outperformance over the benchmark
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