Foord International Trust
For conservative, absolute-return investors
(SOFT CLOSED: FOR EXISTING INVESTORS ONLY)
INVESTMENT OBJECTIVE
The fund aims to achieve long-term 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 risk profile
- Seeking preservation of capital and safe investment growth.
REGISTERED COUNTRIES
Guernsey, Singapore, South Africa.
| 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 | 14.3 | 26.7 | 1.5 |
| 2014 | -2.1 | 4.9 | 0.7 |
| 2015 | 1.8 | -0.9 | 0.7 |
| 2016 | 1.1 | 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 | 7.1 | 15.9 | 1.3 |
| 2021 (to 30/Jun) | 6.0 | 13.0 | 3.5 |
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 |
10 March 1997 |
| Initial investment amount |
US$10,000 or equivalent |
| Subsequent subscription amount |
US$1,000 or equivalant |
| Significant restrictions |
The portfolio may only invest in cash and Foord International Fund. |
| Income distributions |
A roll-up fund with income being reinvested in the portfolio. |
| Income characteristics |
Zero income yield as it does not distribute income. |
| Portfolio orientation |
Fully invested in the Foord International Fund, a sub-fund of Foord SICAV, domiciled in Luxembourg. |
| 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 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 | 7.9 |
| Nestle | Equity | CH | 5.9 |
| SSE PLC | Equity | GB | 5.6 |
| CVS Health Corp | Equity | US | 5.0 |
| Alphabet Inc | Equity | US | 4.4 |
Monthly Commentary – May 2021
- Global equities (+1.5%) sustained their rally on robust corporate earnings and vaccination rollouts—volatility rose as higher inflation prints increased the probability that the US Federal Reserve would taper bond purchases earlier than expected
- Developed market equities (+1.6%) led the gains on the gradual return to normalcy, with emerging markets (+1.1%) driven by Brazil (+9.4%) and India (+7.8%) and aided by US dollar weakness—China (-0.7%) underperformed on antitrust scrutiny of technology companies
- Developed market bond yields were broadly flat—as the Fed maintains its ‘wait-and-see’ approach on inflation and interest rates
- US dollar weakened against euro (+1.6%) and British pound (+2.7%)—on the back of dovish Fed and improving global economic data
- Commodities continued to rally on back of a weaker dollar—precious metals gold (+7.7%) and silver (+6.8%) advanced on higher inflation expectations while copper (+4.5%) closed at all-time highs
- Precious metals streamer Wheaton Precious Metals (+16.6%), miner Freeport McMoran (+13.3%), US pharmacy chain CVS (+13.1%) and UK energy company SSE (+7.9%) contributed most to the fund’s return—top fund holding FMC Corp (-1.3%) retraced
- The fund’s investment in Nagacorp secured bonds matured—the 3-year investment yielded 9.325% per annum in US dollars, comfortably meeting the fund’s investment objective of US inflation + 5% per year
- The managers continue to favour equities over other asset classes—but remain cautious and partially hedged given lofty US equity valuations
No initial fees and redemption fees are levied. A fixed annual fee of 1.00% is levied in the Foord International Fund.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with Foord.
Insights
15 Jul 2021
Inflation is the enemy of long-term investors
Dave Foord touches on why governments need inflation.
15 Jul 2021
Five deflationary forces
Governments have avoid deflation because it is bad for those who are indebted. In this video Dave Foord discusses five global deflationary forces.