Changes to Nedgroup Investment fund managers

Nedgroup Investments have written to clients to announce fund manager changes to three of their funds, the Nedgroup Investments Global Equity Feeder Fund, the Nedgroup Investments Inflation Beater Fund and the Nedgroup Investments International Equity Feeder Fund.

The letter stated that Nedgroup enjoys 'the independence that we enjoy when seeking solutions for our clients. The 'Best of breed' TM investment philosophy enables the company to constantly research, select and monitor existing and prospective fund managers.

Nedgroup Investments Global Equity Feeder Fund
Nedgroup has appointed Taube Hodson Stonex Partners (THS) as the new manager of the Nedgroup Investments Global Equity Feeder Fund, effective late November 2008. There will be no change to the mandate, benchmark or objectives of the fund.

The Nedgroup Investments Global Equity Feeder Fund has been closed to new business for a number of years due to the capacity constraints of the existing manager, Marathon Asset Management. This means you cannot contribute more money to the fund and any investor that disinvests is unable to re-invest.  We realise this causes inconvenience and after a long search have identified a worthy replacement manager.

THS is a London based investment business whose core competency is managing global equity portfolios. They have a distinguished track record, established by the same individuals that are currently managing the portfolio. As an added benefit, there will also be a slight reduction in the Total Expense ratio of the fund.

Nedgroup Investments Inflation Beater Fund
Nedgroup have appointed Prescient Investment Management as the new manager of the Nedgroup Investments Inflation Beater Fund, effective mid-November 2008. There will be no change to the mandate, benchmark or objectives of the fund.

Prescient has an outstanding track record in the management of fixed interest and low risk solutions. Their process and philosophy perfectly suits the Nedgroup Investments Inflation Beater Fund, which is an alternative to income funds for tax-paying investors. Nedgroup Investments has enjoyed a long and successful partnership with Prescient, who presently manage three other funds in the Nedgroup Investments stable.

Nedgroup Investments International Equity Feeder Fund
Nedgroup has appointed Gartmore as the new manager of the Nedgroup Investments International Equity Feeder Fund. There will be no change to the mandate, benchmark or objectives of the fund. 

The Nedgroup Investments International Equity Feeder Fund currently invests in the NIS Absolute Growth Fund of Funds. Locally, Nedgroup has only appointed single fund managers for our Best of breed™ offering. By appointing a single investment manager like Gartmore for the Nedgroup Investments International Equity Feeder Fund, we are aligning our international funds with our domestic Best of breed™ investment strategy, which has proven to be highly successful.

Because fund of funds are generally more expensive than single manager funds, due to the additional layer of fees, the change will also leave the fund with a more competitive total expense ratio.

Gartmore, found in 1969, is a London based investment business that is owned by the fund managers. Their core competency is managing global equity portfolios. They have delivered impressive results for investors over the years, and we believe that you will truly benefit form this manager's expertise.