Nedgroup passes fund mandate to JP Morgan for South Africa launch

Nedgroup Investments has selected JP Morgan Asset Management as the new manager of its Global Cautious Fund as it opens investment up to the South African market. The fund was initially launched in November 2008 with Bank of New York (BNY) Mellon Newton as fund manager.

Nedgroup head of relationship management Simon Spencer told Hedge Funds Review the change in manager had come after a review and ahead of the fund's South African launch.

"We just felt it was more appropriate for the South African market," Spencer said. He said JP Morgan's large South African offering as well as its track record in absolute return funds meant it was well placed to manage the fund.

Spencer said there had been "no fallout" with the fund's previous managers and Nedgroup was not "unhappy" with BNY Mellon.

JP Morgan portfolio manager Talib Sheikh will manage the Global Cautious Fund on a discretionary basis, basing management on JP Morgan's own Global Capital Preservation Fund.

Spencer said JP Morgan had been selected as part of Nedgroup's best of breed range of managers, which aims to give South African investors access to leading investment managers.

The Global Cautious Fund is a single-manager fund which aims to achieve long-term returns with low volatility by investing in a range of asset classes including cash, equities and bonds. It aims to deliver one month Libor plus 3% a year.

Fortis Prime Fund Solutions will be the fund administrator and Citi the fiduciary custodian for the fund, which is domiciled in the Isle of Man.

The minimum investment in the fund is $100,000 for institutional investors and $4,000 for retail investors.

Spencer said assets under management were currently below $10 million but a recent roadshow in South Africa had prompted a lot of interest in the fund.

JP Morgan Asset Management head of UK and international sales John Bennett said the new mandate would give wider access to South African investors.

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