Letter to investors
Strong markets and improved general sentiment does not however mean that the massive issues facing developed market economies are close to resolved. We caution investors that the exceptional returns South African investors have enjoyed over the last decade are unlikely to be replicated.
A number of articles in this edition provide insights from various experts who give their take on where the opportunities and pitfalls lie.
Along with travails of the economy, industry players (asset managers, financial advisers and investors) are faced with a wall of impending legislation. These include significant proposals to retirement reform where Treasury has issued a number of papers, consideration of a re-look into intermediary remuneration similar to that recently adopted in the UK, as well as the implementation of a comprehensive TCF (Treating Customers Fairly) framework.
We encourage all role-players to acquaint themselves with the proposals and participate in the conversation. In future newsletters we intend to provide greater clarity on these developments and their potential impact.
At the annual Raging Bull awards held in January this year, Nedgroup Investments placed in the top three Management Companies in South Africa. This award follows top three performances in 2005, 2009, 2010, 2011 and now in 2012 again!
These awards take cognisance of our entire range (with a few small exceptions) and measure it on a risk-adjusted basis over various periods. It is therefore a reasonable reflection of the results that our range has delivered for investors.
Three unit trust portfolios won individual awards for being top in their categories, namely the Nedgroup Investments Entrepreneur Fund, the Nedgroup Investments Financials Fund and the Nedgroup Investments Mining and Resources Fund.
It is a fantastic achievement to have been nominated amongst the top managers in the country for a lengthy period and we are delighted to have delivered good, consistent results for our investors.
We enjoyed record support from our clients in 2012, with extra-ordinarily strong inflows. It was pleasing to note this support across our range from cash and income funds, to asset allocation and international funds. Many thanks for the faith you have placed in us.