Nedbank Positive Return Fund reaches R1 billion mark in five months

More than R1 billion of investors money has already flowed into the Nedbank Positive Return Fund since its launch five months ago, thereby reaching this landmark in close to the shortest time of any domestic retail unit trust fund.

The fund, which was launched on 1 June 2006, is managed by Herman Steyn and Ronell van Rooyen of Prescient Investment Management in keeping with Nedgroup Investments 'best of breed' asset manager partnering strategy, where fund managers with the most appropriate skills and expertise are chosen to manage unit trusts on behalf of Nedgroup Investments and its clients. 

Nic Andrew, head of Nedgroup Investments, says "the phenomenal support that the Nedbank Positive Return Fund has received from financial intermediaries and investors is indicative of the need that they have for an investment solution where investors benefit from any upswing in equity markets, while at the same time receiving protection from major drawdowns. The funds strategy of not losing capital over any 12-month period, and only then seeking to achieve the best possible returns is proving particularly attractive to investors during the current market uncertainty."

"Due in no small measure to the enormous success of the Nedbank Positive Return Fund, Nedgroup Investments ranked 5th out of 33 unit trust Managers in terms of net sales for the quarter ending 30 September 2006, and ranks 6th overall in assets under management when one excludes fund of funds and money market funds. The Nedbank Positive Return Fund was, however, not the only Nedgroup Investments fund with significant inflows; the Nedbank Value Fund, managed by Dave Foord of Foord Asset Management, also saw strong support over the quarter with net flows of R300 million, as did the Nedbank Flexible Income Fund, managed by Guy Toms and Rashaad Tayob also of Prescient Investment Management, with net inflows of almost R200 million, and perennial favourite, the Nedbank Rainmaker Fund, managed by Tim Allsop of Polaris Capital, with net inflows of R140 million", says Andrew.

Andrew added that, "the Nedbank Positive Return Fund is an ideal portfolio for more conservative investors seeking some exposure to equity markets, while requiring downside protection, and is particularly suited to people approaching retirement or who have already retired and are drawing an income. These investors absolutely cannot afford to lose any capital in the early years of their retirement.

The Nedbank Positive Return Fund aims to achieve total returns for investors that are in excess of inflation + 4%, while at the same time not subjecting investors to negative returns over rolling 12-month periods. So serious is the fund manager about not losing money for investors over any 12-month period, that the fund charges investors according to a revolutionary no performance - no fees' methodology. The fee is calculated as 10% of total positive performance, limited to a maximum of 2.5% (excluding VAT) over any 12-month period. Importantly, no fees will be charged until the funds previous highest value is exceeded.

"This ensures that it is in the best interests of the fund managers not to lose money for investors", concludes Andrew.