4. INVESTMENT PHILOSOPHY
• Take a long term view and be patient
• Ignore the benchmark when building portfolios
• Diversify and manage risk
• Provide clients with the highest return at the lowest risk
• Top down macro economic analysis, and
• Fundamental, bottom up research
• Understanding drivers of company earnings
– Balance sheet / income statement / cash flow analysis
– Economic cycles and industry changes
– Qualitative research
• Concentrated portfolio of best ideas
• Avoid the losers
4 MARCH 2013
8. INTERNATIONAL OUTLOOK
• US recovery continues
– Partial resolution of fiscal cliff
– Supported by improvements in housing market
– Labour markets geared to residential market recovery
• Chinese growth accelerates
– Recovery in investment spend
– Shift to consumption supported by wage growth
• European decline stabilises
– Public and private consumption not recovering fast
• Commodity prices supported by China & US recovery
• US dollar the preferred developed market currency
FOORD ASSET MANAGEMENT 8 MARCH 2013
19. SOUTH AFRICAN OUTLOOK
• SA GDP growth remains pedestrian
– Led by private and government consumption, SOE investment
– Consumption growth supported by real wage increases; grants
• Terms of trade remains weak
– Falling mining output
– Fast growing imports at higher prices due to weaker currency
• Current account deficit remains a threat to the rand
– On-going foreign investment required to fund deficit
• Higher bond yields likely
– Ratings downgrades; higher bond yields globally
FOORD ASSET MANAGEMENT 19 MARCH 2013
24. FURTHER RAND DEPRECIATION LIKELY
with sporadic rallies due to foreign asset inflows
Source: I-NET
FOORD ASSET MANAGEMENT 24 MARCH 2013
25. EQUITIES REMAIN THE ASSET CLASS OF CHOICE
Especially over the Long term
FOORD ASSET MANAGEMENT 25 MARCH 2013
26. STRATEGY
• Equity markets remain attractively priced
– Short term risks
– Time is required to realise potential returns
• Quality companies preferred
– Strong balance sheets, management teams, dividends
• Bond yields should rise significantly, but timing uncertain
– Negative real returns the most likely outcome
FOORD ASSET MANAGEMENT 26 MARCH 2013
27. Questions
Foord Asset Management (Pty) Ltd and Foord Unit Trusts Ltd are authorised
Financial Services Providers (FSP: 578 & 21476)
Past performance is not necessarily an indication of future performance
28. INVESTMENT TEAM
Main Responsibilities & Qualifications Experience At Foord Responsibility
CIO, Portfolio Manager Strategy, Balanced, Absolute return, Equity, Foreign,
Dave Foord 35 31
B Com, CA(SA) Company Research
Portfolio Manager, Analyst
Brian Davey 21 17 Equity, Company research, Private clients
B Com, CA(SA)
Portfolio Manager, Equities
Dane Schrauwen 20 4 Equity, Balanced, Company research, Private clients
BA LLB
Head: Company Research
Mike Townshend 15 7 Company research, sector research
B Sc (Hons), BA, MBA
Portfolio Manager, Strategy
William Fraser 13 7 Strategy, Balanced, Bonds, Property, Medical Aid
B Com Actuarial, Cert (Financial Engineering)
Head of Retail & Institutional Business
Mike Soekoe 32 4 Private clients
Member of SA Institute of Stockbrokers, CFP ®
Portfolio Manager, Research Analyst Equity, Absolute return, Company research, Private
Nicholas Balkin 10 7
B Com (Hons) Finance, CFA clients
Portfolio Manager, Head: International Research
Vincent Ee 16 - Company research (Foreign)
B Sc (Hons) Acct & Finance, CFA
Portfolio Manager, Research Analyst
Carolyn Levin 7 5 Company research (SA and Foreign)
B Bus Sc (Hons), CA(SA), CFA
Equity Research Analyst
Andrew Coultas 4 2 Company research (Foreign)
B Com (Hons), M Com, CA(SA)
Equity Research Analyst
Guy Shirtliff 6 1 Company research (Foreign)
B Bus Sc (Hons), Cert (Financial Mkts & Instr)
Pravarshan Equity Research Analyst
2 1 Company research (SA)
Murugasen CA(SA)
Equity Research Analyst
Daniel Gerdis 2 1 Company research (SA)
CA(SA)
Equity Research Analyst
Wim Murray 1 - Company research (SA)
BA LLB
FOORD ASSET MANAGEMENT 28 MARCH 2013
29. FOORD BALANCED FUND
Current Top 10 equity positions
% of portfolio
BHP Billiton 4.9
SABMiller 3.3
Aspen 3.3
Sasol 3.1
British American Tobacco 2.9
Standard Bank 2.9
CF Richemont 2.8
Anglos 2.8
Bidvest 2.4
RMB Holdings 2.3
30.7
FOORD ASSET MANAGEMENT 29 MARCH 2013
30. FOORD EQUITY FUND
Top 10 equity positions
% of portfolio
BHP Billiton 8.3
Sasol 6.0
SABMiller 5.9
Anglos 5.2
CF Richemont 5.1
Standard Bank 4.9
British American Tobacco 4.6
Bidvest 4.6
Aspen 4.4
Coronation 3.9
52.9
FOORD ASSET MANAGEMENT 30 FEBRUARY 2013
