The Stable Fund Series: article 1 of 5: Excellent returns through asset allocation

The Nedgroup Investments Stable Fund was launched in 2007 with Foord Asset Management as our Best of Breed™ partner in this space. Since then, the Fund has endured the Global Financial Crisis, European Debt Crisis, US downgrade, Emerging Markets volatility, Brexit and the Covid market crash to name a few.

So how did the Fund navigate these capital market risk events? The answer lies in aiming for the following objectives:

• Constructing a robust portfolio
• Adequate diversification
• Careful fundamental research
• Tactical asset allocation
• Being macro-aware
• Diligently trying to avoid blow-ups

Evidence of this can be seen in the interesting picture below which shows the cumulative performance of the Nedgroup Investments Stable Fund (green line) against the peer group (grey shaded area) and the major SA asset classes:

 
Source: Nedgroup Investments, Morningstar, data to 31st May 2021

As can be seen, despite shorter term headwinds from time to time, the Nedgroup Investments Stable Fund has proven its resilience through a variety of market conditions. The Fund is also the best performer in its category since launch, a result we can all be proud of.