Manager Research

We have recently completed our review of the Nedgroup Investments Core Guarded, Core Diversified, Core Accelerated, Core Global and Core Global Feeder funds. We have maintained the Tier 1 rating on the Core Guarded, Core Diversified and Core Accelerated funds, and maintained the Tier 2 rating on the Core Global and Core Global Feeder Funds.

As a reminder, a Tier 2 rating is still a good fund and remains investable, but there are some concerns which we are evaluating. For the Core Global and Core Global Feeder funds, this relates to the fee structure which is slightly high for a passive investment strategy which is a key consideration in our evaluation of passively managed funds.

On the business and shareholder, we have seen Nedbank Group support the development of this fund range. We take comfort that this is a passive strategy and so the risk of the institutional imperative to change things when performance is poor is low.

The business also has strong leadership which has made good decisions over time. We have seen decent team stability which indicates that the remuneration and incentive structure is reasonable and effective and there have also been additional hires into the team through time.

The funds are managed using a well-considered and consistently implemented investment strategy and have performed in line with our expectations.

Ultimately, we feel that these funds are a strong option in the South African multi-asset fund universe. Below, an overview of the ratings is provided.