Manager Research

The Foord International Trust has changed its offshore (USD based) benchmark to be a flat 10% per annum.  This is a unique benchmark in that it is not market linked (its previous benchmark was MSCI World).  We have tested this over a 35 year horizon, and the 10% target appears to be fair and in line with historical return averages (if not slightly higher).  The fund does not have a performance fee so there is no direct impact, and the SA feeder version remains MSCI World.

Foord have launched two new unit trust funds for retail investors in the last six months.  They launched the Foord Global Equity Feeder Fund, which invests directly into their Foord Global Equity Fund.  The second fund launched is the Foord Conservative Fund.  Interestingly despite the fund being named a “Conservative” fund, it sits in the medium equity category for asset allocation funds (i.e. allowed a maximum of 60% in equities), rather than in the low equity category (maximum of 40% equity) that one may expect. Our view is that this is driven by the fact that Foord manage the Nedgroup Stable fund which sits in this low equity category, and Foord/Nedgroup would not want a competing fund.   The fund aims for a net-of-fee return of CPI+4% per annum, measured over rolling three-year periods (while most low equity funds would aim for CPI+3%).

There have also been a few changes in the team at Foord.  Firstly, Daryll Owen was appointed Deputy CIO (a new role) in September last year.  His focus is on helping the CIO, Dave Foord, with certain of the CIO duties specifically relating to the SA investments (i.e. responsible for the head of research and analysts in SA, the dealing team, co-ordinating investment strategy), but the portfolio managers will continue to report to the CIO.  

The other material team change is that Carolyn Levin has moved back to Cape Town, after leading the setup of the Singapore business.  She has taken on the role of head of company research, as well as being one of the portfolio managers in the multi-councillor setup for SA equity funds and analysing global stocks.