Objective: The steady growth of income and capital as well as the preservation of real capital (capital as adjusted for inflation) and to exceed the benchmark return (see below). The Balanced Fund seeks steady growth of income and capital as well as the preservation of real capital (capital as adjusted for inflation).

Is the fund eligible for selection in one of the Equinox retirement funds? Yes, the portfolio is managed to comply with the statutory investment limits set for retirement funds in South Africa. 

Benchmark: The market value weighted average total return of the Domestic Asset Allocation Prudential Medium Equity unit trust sector, excluding Foord Balanced Fund.

Investment universe: The fund manager will invest in all JSE listed companies, bonds, listed properties, money-market instruments, units in collective investment schemes and foreign investments to a maximum of the foreign limit as regulated by the Pension Funds Act. The fund manager will limit equity exposure to between 40 and 60% of the portfolio.

Fees: The full details of the performance-base annual fee could not fit into our template. The annual fee is the only area where AMB Foord derives an income. The fee is performance related, with the following details:
* the performance benchmark is the return of the All Share Index plus dividends;
* the fee has a minimum level of 0.5% per annum.
* the fee is 1.5% per annum for equalling the benchmark;
* the fee will be increased or decreased by an amount equivalent to one-tenth of the outperformance or underperformance of the benchmark.
* All fee rates exclude VAT,which is levied at 14%.

Total Expense Ratio: For the year ended 31 January 2007, charges, levies and fees amounted to 2.6% of the average net asset value of the portfolio. This includes a performance fee of 1.1%. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER is not an indication of future TERs.