Celebrating 15 years of growth, discipline and investor confidence

One of the biggest challenges in investing is not choosing where to invest but staying invested when markets test investors’ patience. While investors seek growth, they also need to be confident that their portfolio can continue to serve its intended purpose through difficult periods. As the Nedgroup Investments Opportunity Fund marks its 15-year anniversary, it is an opportune moment to reflect on the role the Fund has played in delivering outcomes investors could remain committed to over time.

From inception, the Fund has had two clear objectives:

·        Deliver inflation +5% over the medium- to long-term, and

·        Avoid negative rolling 24-month returns 

Put simply, the Fund aims to grow capital meaningfully ahead of inflation while reducing the risk that investors still face a loss after two years. These objectives are ambitious because successful long-term investing is not only about generating returns, but also about helping investors remain committed through changing market conditions.

That is why this milestone matters. The Fund’s 15-year history exists because investors have trusted us through vastly different market conditions. That trust is something we are deeply grateful for and never take for granted.

Long-term returns only matter if investors can stay the course

A financial plan is rarely about maximising equity exposure at any cost. More often, it aims to achieve meaningful growth while managing the behavioural pressures that volatile markets can create. This is where the Opportunity Fund’s objectives remain highly relevant.

The inflation +5% target speaks directly to real wealth creation. Investors do not experience returns in nominal terms alone, what matters is whether their money grows in purchasing power and helps them move closer to their long-term goals.

The second objective is equally important. Investors can generally accept short-term volatility, but what is much harder to live with is sitting on a loss for an extended period, i.e. after two years. That kind of experience can shake confidence and disrupt a long-term plan.

This is where the Fund’s record stands out. Since inception, the Opportunity Fund has avoided negative rolling 24-month returns 98% of the time. The only exception came during the Covid-19 shock, when the rolling 24-month return briefly fell below zero. Even then, it lasted only three months before recovering into positive territory again. While not immune to market stress, the Fund has historically limited the duration of these periods, which can make it easier for investors to stay invested.

Graph 1: 2-year rolling capital protection

Source: Morningstar | data from inception (July 2011) to 30 June 2026

A medium equity fund with high-equity-like outcomes

Although classified as a medium equity fund, the Opportunity Fund has often delivered outcomes comparable to high equity funds over the long-term. This has placed its returns toward the top end of the medium equity category, making it a compelling option for investors seeking meaningful growth without automatically starting with a full high equity allocation.

It’s important to note that this has not been driven by a single favourable period. The Fund’s consistency across different market environments and starting points shows a repeatable pattern of outcomes rather than a once-off result. That consistency helps build confidence, because investors can see that the Fund has broadly done what it set out to do over time.

A rolling return comparison against the Multi-Asset High Equity category highlights this:

• 61% of the time above average over 1-year rolling periods
• 73% over 3-year rolling periods
• 85% over 5-year rolling periods
• 100% over both 7- and 10-year rolling periods

Graph 2: Consistency to keep up with high equity funds

Source: Morningstar | data from inception (July 2011) to 30 June 2026

These results matter because consistency can make the investment journey more manageable. When outcomes are repeatable, it becomes easier to explain the Fund’s role and, importantly, easier for investors to understand and remain invested through the cycle.

Omri Thomas’ reflection on how the team has achieved success for 15 years

The Fund draws on Abax Investments’ long-standing hedge fund mindset of balancing downside protection with meaningful participation in rising markets. The aim has been to avoid large, prolonged drawdowns while still capturing growth opportunities over time.

Performance has not been without setbacks. Periods such as Nenegate, Steinhoff and Covid-19 tested the process, but the Fund has remained anchored to its dual objectives. Over time, the approach has evolved, including the increased use of instruments such as structured notes to help manage a level of downside risk while maintaining exposure to upside opportunities.

Today’s market environment continues to present both risks and opportunities. A narrow, AI-driven rally has left parts of the market behind, creating opportunities for active stock pickers across areas such as emerging markets, selected Chinese internet companies, and software businesses. At the same time, caution on inflation has led to reduced fixed income duration.

Across all of this, the focus remains consistent: aim for real returns, while being deliberate about managing downside risk. This combination of explicit and implicit capital protection remains central to how the portfolio has been, and continues to be, constructed.

A 15-year record worth reflecting on

Over the last 15 years, the Nedgroup Investments Opportunity Fund has demonstrated that a medium equity strategy can deliver meaningful growth above inflation while remaining disciplined about limiting prolonged periods of capital loss. That combination, growth with resilience, is what gives investors the potential for both progress and peace of mind.

This anniversary is not only a milestone, but a reflection of a journey shaped by clear objectives, consistency, and ongoing learning. Most importantly, it reflects the role the Fund has aimed to play: Helping investors stay invested, through good and difficult market conditions, in pursuit of their long-term goals.