Nedgroup Investments launches the Nedgroup Investments Stable Fund

Nedgroup Investments today announced the launch of the Nedgroup Investments Stable Fund with effect from 1 November 2007, and the appointment of its 'Best of breedTM' investment management partner, Foord Asset Management, to manage the fund on their behalf.

The Nedgroup Investments Stable Fund aims to provide investors with returns comfortably in excess of inflation. It will achieve this by investing in a diversified range of asset classes, both locally and abroad, but at the same time limiting the equity exposure of the fund to a maximum of 40%. A secondary objective of the fund is to avoid negative 12-month periods. The fund will at all times comply with Regulation 28 of the Pension Funds Act. This fund is, therefore, suited to retirement fund investors or any investor looking for a low-risk diversified portfolio.

Nic Andrew, head of Nedgroup Investments says, "We are very proud to be partnering Foord Asset Management, who also manage the Nedgroup Investments Value Fund, on behalf of our clients. Our in-depth research suggests that Foord Asset Management is a highly appropriate appointment for this mandate. Foord have developed a formidable track record managing equity, balanced and absolute mandates for the past 24 years. Our analysis suggests that this success is a result of notable investment skill in both asset allocation and stock selection across the major asset classes. Furthermore, the track record suggests superior downside protection in times of market trouble. These criteria are clearly essential for low-risk balanced funds such as the Nedgroup Investments Stable Fund".

Andrew concludes: "It is important to note that the fund will charge investors according to a revolutionary 'no performance no fees' methodology. The fee will be calculated as 10% of total positive performance, limited to a maximum of 2.5% (excl VAT) over any rolling 12-month period. 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. By way of example, should the fund produce a return over a 12-month period in line with its benchmark (assuming CPIX inflation is 6%), the benchmark return will be CPIX + 4% = 10%, then the client will be charged 1% (excl VAT) a highly competitive fee. In the highly unlikely event that the fund produces a negative return over that period, no fee will be payable. Nedgroup Investments has also decided to waive all upfront fees."

The minimum lump sum investment amount will be R10,000 with the minimum monthly debit order amount set at R1,000.