Navigating global opportunities: Unleashing the power of Worldwide Flexible Funds

In a world of global economic uncertainty, market volatility and shifting investment landscapes, finding a fund that adapts seamlessly to changing conditions is key. Multi-asset worldwide flexible funds offer diversified and adaptable investment strategies across global markets. These funds have the unique advantage of being able to invest in a wide range of asset classes, including listed equities, bonds, property and cash instruments, anywhere in the world. This flexibility allows fund managers to position themselves based on their best investment views, whether those opportunities lie in South Africa or offshore.

Investing in a multi-asset worldwide flexible fund in South Africa offers several advantages for local investors. As the name would suggest, these funds have complete flexibility in their asset allocation, both between and within asset classes, countries and regions and no minimum or maximum holding applies to local or offshore investment. These funds actively shift assets between the various markets and asset classes to reflect changing economic and market conditions to maximise total returns over the long-term – investing wherever the best opportunities lie. In providing diversification across different currencies and global markets, investors can benefit from exposure to various economies, industries and regions, reducing reliance on the local market or risks that are specific to South Africa.

Another advantage of investing worldwide is currency diversification, which is crucial for South African investors wanting to invest offshore, given concerns about the devaluation of the rand and local economic challenges. Investing in global assets denominated in rands offers a natural currency hedge against rand depreciation. With these funds, investors don’t need to physically take their money offshore - investing is straightforward as investors can access global markets without the complexities of opening direct offshore accounts.

Finally, these funds provide built-in risk management. By diversifying across various asset classes, they aim to reduce the impact of market volatility on the investment. When one asset class underperforms, others often compensate, leading to a smoother overall return profile. A good manager will continuously assess opportunities and risks, adjusting the portfolio to optimise returns while managing risk. Ultimately, lower volatility with a focus on capital growth enables these funds to achieve competitive long-term performance for investors.

The Nedgroup Investments Bravata Worldwide Flexible Fund, which falls in the category of worldwide flexible funds, has consistently delivered impressive long-term returns. The fund adopts a valuation-focused approach, seeking out high-quality companies that exhibit predictability, consistency, strong dividend payments and are trading at a discount to intrinsic value. With a global investment strategy, the Bravata Worldwide Flexible Fund taps into diverse markets, identifying opportunities across various regions and sectors. Its unconstrained, fully flexible strategy allows for aggressive investment when the market presents value and holds cash during expensive market conditions. The fund’s agility and liquidity enables rapid adjustments, allowing it to seize opportunities as they arise. Additionally, being nimble permits the fund to invest in companies that larger funds cannot access, enabling the fund manager to identify unique investment prospects not available to all market participants. By diversifying across asset classes, geographies and currencies, the fund aims to preserve and enhance real wealth. Additionally, the fund’s diversified asset mix assists in providing capital protection. Investors can benefit from the Bravata Worldwide Flexible Fund’s low volatility profile, ensuring a smoother investment journey with a genuine long-term outlook. Inflation erodes the purchasing power of money over time and the Bravata Worldwide Flexible Fund recognises this challenge and actively seeks investments that can withstand inflationary pressures.

The fund’s disciplined investment strategy aims for steady wealth accumulation over time. The chart below shows cumulative performance since the fund’s inception in 2005, approximately 18 years ago. Investors have effectively doubled their investment roughly every six and a half years, resulting in an annual growth rate of approximately 11%.

Source: Nedgroup Investments, Morningstar as at 31/01/2024

Choosing an investment vehicle that aligns with long-term financial goals is crucial. The Nedgroup Investments Bravata Worldwide Flexible Fund is a versatile and robust investment vehicle that transcends market cycles and provides consistent value to investors. Choosing between onshore and offshore, navigating various asset classes, and timing your investments, can be daunting for investors. However, with the Bravata Worldwide Flexible Fund, you have the assurance of entrusting your financial decisions to a seasoned multi-asset expert who will manage them on your behalf. Investing is a marathon, not a sprint, and with the Nedgroup Investments Bravata Worldwide Flexible Fund, clients are well-positioned for the long haul.