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<p>THE COMPOSITION OF the equity portfolio portion of Foord Compass is always interesting to gauge - particularly since the debenture-based investment vehicle holds a mandate catering to investors seeking a generous dividend and capital growth. Though Foord Compass traditionally doesn't trumpet its portfolio holdings its latest annual report does provide some insight into specific stock selection. </p>
<p>Right off, it's clear Foord's equity portfolio isn't structured anything like the traditional blue chip-based arrangement usually found in equity-based unit trusts. There are no resources giants, no SABMiller or any holdings in portfolio stalwarts such as Richemont, MTN and Remgro. The biggest individual holding for Foord remains in property, with 9,7m shares in Redefine (worth R69m). </p>
<p>However, it would seem the retail sector remains a favourite. Even though its exposure to Foschini was reduced from 1m to 800 000 shares, Foord markedly increased its position in Woolworths from 1,5m to 2,3m shares. RMB Holdings (1,49m shares) remained its only financial services holding, while its holding in industrial conglomerate Bidvest was dramatically reduced from 415 000 to 220 000 shares. Foord's position in British American Tobacco was increased slightly to 160 000 shares, while new positions were built in poultry group Astral Foods (a holding of around R38m) and cement giant PPC (1m shares). Its holding in Lereko Mobility Redeemable Debentures was reduced from 1m to 896 000. </p>
<p>While its South African equity portfolio was bulked up by more than R100m to R380m, the increase in investments in offshore listed stocks grew more than fourfold to R160m. </p>
<p>Most interesting, though, was the biggest change in Foord's equity portfolio wasn't found in new stock holdings but rather in open derivative exposures, of which (unspecified) equity options comprised a hefty R277m. </p>
<p>Right off, it's clear Foord's equity portfolio isn't structured anything like the traditional blue chip-based arrangement usually found in equity-based unit trusts. There are no resources giants, no SABMiller or any holdings in portfolio stalwarts such as Richemont, MTN and Remgro. The biggest individual holding for Foord remains in property, with 9,7m shares in Redefine (worth R69m). </p>
<p>However, it would seem the retail sector remains a favourite. Even though its exposure to Foschini was reduced from 1m to 800 000 shares, Foord markedly increased its position in Woolworths from 1,5m to 2,3m shares. RMB Holdings (1,49m shares) remained its only financial services holding, while its holding in industrial conglomerate Bidvest was dramatically reduced from 415 000 to 220 000 shares. Foord's position in British American Tobacco was increased slightly to 160 000 shares, while new positions were built in poultry group Astral Foods (a holding of around R38m) and cement giant PPC (1m shares). Its holding in Lereko Mobility Redeemable Debentures was reduced from 1m to 896 000. </p>
<p>While its South African equity portfolio was bulked up by more than R100m to R380m, the increase in investments in offshore listed stocks grew more than fourfold to R160m. </p>
<p>Most interesting, though, was the biggest change in Foord's equity portfolio wasn't found in new stock holdings but rather in open derivative exposures, of which (unspecified) equity options comprised a hefty R277m. </p>
