The appointment of a new fund manager by Nedgroup Investments has created a strong business and investment link between the Isle of Man, South Africa and the United States.
This newly established link with the United States has seen them appoint Los Angeles-based First Pacific Advisors (FPA) to manage the Nedgroup Investments Global Balanced Fund; a fund that has produced impressive results during the global financial crisis.
Nedgroup Investments, the international asset management subsidiary of Nedbank Group of South Africa, has offices in the Isle of Man and London and currently has US$ 1.8 billion under management and advice.
The Global Balanced Fund forms part of Nedgroup’s International ‘Best of Breed’ range, an approach that sees Nedgroup partner with specialist fund managers. Nedgroup’s investment team research, select and monitor managers on an ongoing basis to ensure that they have the best fund choices available.
FPA takes over management on June 17th, which will coincide with a change of name for the fund to the Nedgroup Investments Global Flexible Fund. At the same time the name of the South African based feeder fund will be similarly renamed the Nedgroup Investments Global Flexible Feeder Fund.
“This is a very positive move for the fund and for our investors,” said Nedgroup Investments’ Managing Director Andrew Lodge. “FPA is an experienced fund manager with an excellent track record. We have monitored FPA’s performance for a long period, and found them to be of the highest quality. We had no hesitation in appointing FPA to manage our Global Flexible Fund.”
The fund benchmark and fees are not changing. However, the maximum allowable equity exposure has been increased from 75% to 100%, allowing FPA full flexibility in extreme market conditions. The fund is expected to typically have an equity exposure of between 40% and 70%.
The Nedgroup Investments Global Flexible Fund will be modelled on a successful US product called the Crescent Fund, created by FPA’s managing partner Steve Romick who was nominated in the US for the ‘Morningstar Fund Manager of the Decade’ in 2009.
The appointment of FPA also coincides with the 21st anniversary of Nedgroup Investments being established in the Isle of Man, having first opened its offices in 1992.
“This is an important landmark for Nedgroup Investments in the Isle of Man,” added Andrew Lodge. “It signals a new era in the history of the company, and the appointment of a new fund manager emphasises the importance of identifying and utilising the skills of the most highly skilled professionals from anywhere in the world.”
