Nedgroup Investments is pleased to announce the appointment of US-based manager, First Pacific Advisors (FPA), to manage the Nedgroup Investments Global Balanced Fund. FPA will assume investment management responsibility for the fund on 17 June 2013 and will be replacing Sarasin & Partners. This change will also impact the Nedgroup Investments Global Balanced Feeder Fund, which is a rand denominated feeder fund that gives investors exposure to the Nedgroup Investments Global Balanced Fund.
The name of the fund will be changed from the Nedgroup Investments Global Balanced Fund to the Nedgroup Investments Global Flexible Fund. The name of the Nedgroup Investments Global Balanced Feeder Fund will also change to the Nedgroup Investments Global Flexible Feeder Fund once FSB approval has been obtained.
The benchmark, fees, and likely asset allocation limits are not changing; however the maximum allowable equity exposure has been increased from 75% to 100% to allow for additional flexibility in extreme market conditions. It is still expected that the fund will typically hold between 40-75% in equity.
The fund will be managed by Steven Romick, a managing partner at FPA and a Morningstar Fund Manager of the Decade Nominee in 2009. Steven founded and has managed their Contrarian Value strategies since 1993. This includes the Crescent Fund, which the Nedgroup Investments Global Flexible Fund will be modelled on, with a few small differences due to different regulatory regimes. Over this 20-year period, Steven and his team have developed an enviable performance track record. Brian Selmo and Mark Landecker will co-manage the fund, assisted by a dedicated team of eight investment professionals.
FPA is located in Los Angeles, California, and was founded in 1954. The firm is independently owned with 27 investment professionals and 71 employees in total. Currently, FPA manages $23 billion.
FPA’s investment approach, as summarised by Steven Romick below, is closely aligned with our Best of Breed™ philosophy.
- We seek to offer our clients a prudent place to invest their capital, and to provide them superior returns over the long-term, while emphasizing preservation of capital.
- We seek the broadest mandate. We invest across the capital structure, asset classes, market caps, industries, and geographies. We are willing to hold cash.
- We are absolute value investors. We seek genuine bargains rather than relatively attractive securities.
- We are long-term focused. We believe the best way to accomplish our goals is to accept short-term underperformance in exchange for long-term success.
- We have a macroeconomic view. We incorporate an understanding (sometimes limited) of the economic environment.
- We embrace volatility. If we have performed our research correctly, volatility creates opportunity, not risk.
- We care deeply about downside protection. We aim to protect capital first and create long-term equity-like returns second. We cannot eliminate risk, but we conduct ourselves by hoping for the best, while preparing for the worst.
- We believe in alignment of interests. We invest our money alongside yours, and we act as stewards of our shared capital.
FPA’s independence, skill set, focus and alignment of interests make them a natural choice to manage the Nedgroup Investments Global Flexible Fund.