nedgroup investments · nedgroup investments abridged annual report 2010 01. 02. nedgroup...

Abridged Annual Report 31 December 2010

NEDGROUP INVESTMENTS

Nedgroup Investments Abridged Annual Report 2010

Report to Investors 3 - 7

Trustees’ Report 9

Unit Trust Performance Table 10 - 11

Equity Range

Nedgroup Investments Rainmaker Fund 12

Nedgroup Investments Equity Fund 13

Nedgroup Investments Quants Core Equity Fund 14

Nedgroup Investments Growth Fund 15

Nedgroup Investments Value Fund 16

Specialist Equity Range

Nedgroup Investments Entrepreneur Fund 17

Nedgroup Investments Mining & Resource Fund 18

Nedgroup Investments Financials Fund 19

Asset Allocation Range

Nedgroup Investments Balanced Fund 20

Nedgroup Investments Managed Fund 21

Nedgroup Investments Bravata Worldwide Flexible Fund 22

Nedgroup Investments Core Diversified Fund 23

Contents

Asset Allocation Range (continued)

Nedgroup Investments Core Guarded Fund 24

Nedgroup Investments Positive Return Fund 25

Nedgroup Investments Stable Fund 26

Income Range

Nedgroup Investments Bond Fund 27

Nedgroup Investments Optimal Income Fund 28

Nedgroup Investments Money Market Fund 29

Nedgroup Investments Cash Plus Fund 30

Nedgroup Investments Flexible Income Fund 31

Nedgroup Investments Property Fund 32

International Rand-Denominated Range

Nedgroup Investments Global Equity Feeder Fund 33

Nedgroup Investments Global Balanced Feeder Fund 34

Nedgroup Investments Global Cautious Feeder Fund 35

Corporate Social Responsibility

Nedgroup Investments Fundisa Fund 36

Nedgroup Investments Abridged Annual Report 2010 01

I am pleased to report that Nedgroup Investments has delivered another set of

solid investment results for investors in 2010. We remain fully committed to

fulfilling our mission of equipping you to achieve your investment goals.

Market overview

Equity markets ended the year on a very pleasing note with the FTSE/JSE ALSI

rewarding investors with a return of 19% for 2010. Although the index price

series is still below its previous high in May 2008, investors who endured the

2008 market crash have returned to positive territory on a total return basis.

South African asset classes fared well overall with the bond and property

sectors delivering healthy returns of 15% and 30% respectively for the year.

With inflation at its most subdued levels in recent years (3.6%), all domestic

asset classes including cash (6.3%) provided investors with significant real

returns for 2010. Attractive local interest rates saw an influx of foreign

portfolio flows (with interest rates in developed markets at historic lows)

into South Africa, resulting in the rand appreciating further against the major

currencies over the year. While this has benefited foreign investors in local

markets, it has diminished returns for local investors offshore.

The developed world continues to struggle with a recessionary environment and

in particular, the extraordinarily high debt of many governments. The outlook

remains uncertain as the world and global markets consider the consequences

of unprecedented quantitative easing (a monetary policy that a central bank

may employ to increase the supply of money in the economy in order to

stimulate growth), exceptionally low interest rates and bailing out countries

that are unable to service their debt. We acknowledge that investing in such an

environment can be daunting and understand the significant responsibility we

have in partnering with you.

Best of breed™ investment strategy

Nedgroup Investments once again delivered a very strong performance over

the course of 2010, anchored by our Best of breed™ investment strategy,

which allows us to identify the most appropriate investment managers to

meet our investors’ needs.

This strategy sees us partner with select investment managers - individuals

and teams - who we believe will deliver exceptional, consistent investment

performance over the long term, while acting as responsible stewards of

investors’ capital.

Report to Investors


Performance review

We are delighted with the performance of our fund range, with the majority

of our funds outperforming their benchmarks over the relevant measurement

periods. We were recently awarded second place in the category “Domestic

Management Company of the Year” at the 2011 Raging Bull Awards ceremony

in addition to four individual fund awards. The awards recognise asset

management companies with the most impressive and consistent overall

performance across their range of funds, taking into account performance

and risk management.

Some individual performance highlights during 2010 include:

Equity Range

The Nedgroup Investments Rainmaker Fund (+18.9% in 2010; +24.4% per

annum over 10 years) – our largest fund and the second largest equity fund in

the industry – had another solid year, finishing just outside the top quartile.

The fund ranked 13th out of 55 over five years, 3rd out of 42 over seven years,

and 1st in its category over 10 years.

The Nedgroup Investments Value Fund (+24.4% in 2010; +25.8% per annum

over 10 years) was ranked 1st in the Value category over one, three and five

years and relative to all General Equity, Growth and Value Funds, placed 1st

out of 88 funds over three years and 2nd over five and 10 years.


Report to Investors

The Nedgroup Investments Growth Fund (+22.2% in 2010; +18.2% per annum

over 10 years) was ranked 1st in its category over the year as well as over five,

seven and 10 years.

Out of the 55 General Equity, Growth and Value Funds, we have three funds

in the top 10 over a seven year period – the Nedgroup Investments Growth

Fund (6th), the Nedgroup Investments Value Fund (7th) and the Nedgroup

Investments Rainmaker Fund (8th). Over 10 years, the Nedgroup Investments

Rainmaker Fund ranked 2nd and Value 3rd out 43 General Equity, Value and

Growth Funds.


The Nedgroup Investments Managed Fund (+11.9% in 2010; +16.1% per

annum over seven years) delivered another pleasing performance for the year.

Relative to all Prudential Medium & Variable Equity Funds, the fund ranked

3rd out of 77 funds over three years and 11th out of 53 funds over five years.

The Nedgroup Investments Stable Fund (+11.1% in 2010) had an excellent year,

repeating the success of 2008 and 2009 (its first two calendar years). The fund

was placed 12th out of 53 over one year and 2nd out of 44 over three years.

The Nedgroup Investments Positive Return Fund (+7.8% in 2010; +9.7% per

annum over three years) enjoyed a good year relative to its inflation plus 4%

benchmark. With the recent run in equity markets and moderation in inflation,

the fund has recovered a fair amount of lost ground relative to its

performance benchmark.

Income Range

The Nedgroup Investments Bond Fund (+14.6% in 2010; +11.2% per annum

over three years) ranked 2nd in its category over two years and 1st over three

and five years.

The Nedgroup Investments Flexible Income Fund (+4.9% in 2010; +8.9%

per annum over three years) had a slightly disappointing year as the offshore

exposure was negatively impacted by the strong rand. Its longer-term

performance remains good, with the fund keeping pace with a challenging

benchmark of 110% of cash over a five-year period.

The Nedgroup Investments Optimal Income Fund enjoyed an outstanding

year with a return of 9.2% - well ahead of its after-tax cash benchmark.

Our investors

We would like to thank our investors for entrusting their money to Nedgroup

Investments. We remain committed to providing our investors with relevant

information in a straight-forward and responsible way to assist them in

making well-informed decisions. We should also not overlook the vital role that

financial planners have played in guiding their clients during this volatile period.


We enjoyed very strong flows with record gross and net inflows. The assets

we manage on behalf of investors has grown an incredible ten-fold since

the introduction of our Best of breed™ strategy in 2003, from R5 billion

to R50 billion.

Our people

I would like to thank my colleagues at Nedgroup Investments for their

commitment and hard work during the year in providing our investors

with the excellent service they have come to expect from us.

New developments

We launched our first TV commercial in 2010. The key message is about

preventing emotions from negatively affecting your investment decisions.

We hope to convey that humans all experience powerful emotions (such as

fear, greed, over-confidence, frustration and impatience). These emotions

often cause us to make irrational investment decisions that are not in our

best long-term interests. We will continue reinforcing this important theme

and message during 2011.


Report to Investors

We also made two enhancements to our range during the year. In July, we

launched the Nedgroup Investments Property Fund and appointed Ian Anderson

of Grindrod Asset Management as the investment manager. We have taken a

decision to limit the size of the fund, which we believe will allow the manager

greater flexibility and improve the probability of outperformance.

South African equity investors have enjoyed a decade of excellent returns,

particularly in comparison to their experience with offshore investments.

We believe that long-term investors should look carefully at increasing their

offshore exposure. With this in mind, we have spent considerable time refining

our best of breed international offering. During the final quarter of 2010,

we appointed Veritas Asset Management to manage the Nedgroup Investments

Global Equity Fund (and therefore also the Global Equity Feeder Fund).

During 2009 we launched our Dream Big Campaign, encouraging South Africans

to invest for a child’s education through the Nedgroup Investments Fundisa Fund.

This is a powerful initiative between industry and government that offers

competitive interest rates and a 25% bonus for all contributions made

(up to a maximum of R600 per year). We have made it our mission to raise

awareness of this initiative so that it can reach its full potential and are

pleased to report considerable take-up during 2010.

In closing, despite the challenging economic conditions, we believe that we

continue to deliver on our promise of providing excellent client service and

strong investment performance. We look forward to helping our investors

achieve their financial goals over the course of 2011 and beyond.

Nic Andrew

Head: Nedgroup Investments


.


Trustees’ Report


Seggie MoodleyHead: Risk and Legal (Trustee Services)Standard Bank of South Africa Limited

Report of the Trustee for the Nedgroup Collective Investments Scheme

We, the Standard Bank of South Africa limited, in our capacity as Trustee of the Nedgroup Collective Investments (“the Scheme”) have prepared a report in terms of Section 70(1)(f) of the Collective Investment Schemes Control Act, 45 of 2002, as amended (“the Act”), for the financial year ended 31 December 2010.

In support of our report we have adopted certain processes and procedures that allow us to form a reasonable conclusion on whether the Manager has administered the Scheme in accordance with the Act and the Scheme Deed.

As Trustees of the Scheme we are also obliged to in terms of Section 70(3) of the Act to satisfy ourselves that every income statement, balance sheet or other return prepared by the Manager of the Scheme as required by Section 90 of the Act fairly represents the assets and liabilities, as well as the income and distribution of income, of every portfolio of the Scheme.

The Manager is responsible for maintaining the accounting records and preparing the annual financial statements of the Scheme in conformity with generally accepted accounting practice. This responsibility also includes appointing an external auditor to the Scheme to ensure that the financial statements are properly drawn up so as to fairly represent the financial position of every portfolio of its collective investment scheme in accordance with generally accepted accounting practice and in the manner required by the Act.

Our enquiry into the administration of the Scheme by the Manager does not cover a review of the annual financial statements and hence we do not provide an opinion thereon.

Based on our records, internal processes and procedures we report that nothing has come to our attention that causes us to believe that the accompanying financial statements do not fairly represent the assets and liabilities, as well as the income and distribution of income, of every portfolio of the Scheme administered by the Manager.

We confirm that according to the records available to us, no losses were suffered in the portfolios and no investor was prejudiced as a result thereof.

We conclude our report by stating that we reasonably believe that the Manager has administered the Scheme in accordance with:

the limitations imposed on the investment and borrowing powers of the manager by this Act;

and the provisions of this Act and the deed.

Melinda Mostert Head: Trustee ServicesStandard Bank of South Africa Limited 25 March 2011

Fund Size Rm Fund Return % Benchmark Return % Benchmark

Equity RangeNedgroup Investments Rainmaker Fund 11 837 18.9 18.1 Sector average

Nedgroup Investments Equity Fund 1 121 21.5 18.1 Sector average

Nedgroup Investments Quants Core Fund 666 20.4 18.1 Sector average

Nedgroup Investments Growth Fund 1 415 22.2 17.9 Sector average

Nedgroup Investments Value Fund 2 614 24.4 19.5 Sector average


Nedgroup Investments Entrepreneur Fund 433 26.1 25.6 Sector average

Nedgroup Investments Mining & Resource Fund 729 17.3 14.3 Sector average

Nedgroup Investments Financials Fund 194 26.8 17.8 Sector average


Nedgroup Investments Positive Return Fund 5 474 7.8 7.6 Inflation +4% pa over rolling 3-year periods

Nedgroup Investments Stable Fund 2 349 11.1 7.6 Inflation +4% pa over rolling 3-year periods

Nedgroup Investments Balanced Fund 92 14.7 10.9 Sector average

Nedgroup Investments Managed Fund 3 731 11.9 11.6Average of the Prudential Medium

and Variable Equity sectorsNedgroup Investments Bravata Worldwide Flexible Fund 481 1.7 8.6 Inflation + 5% per annum

Nedgroup Investments Core Diversified Fund 86 14.3 8.7 Inflation +4-6% pa over rolling 5-year periods

Nedgroup Investments Core Guarded Fund 32 12.1 6.1 Inflation +2-4% pa over rolling 3-year periods


Fund Size Rm Fund Return % Benchmark Return % Benchmark

Income Range

Nedgroup Investments Bond Fund 322 14.6 14.8 All Bond Index

Nedgroup Investments Optimal Income Fund 2 428 8.1 3.7 STeFI Call rate after income tax (40%)

Nedgroup Investments Money Market Fund 5 698 7.0 6.2 STeFI Call rate

Nedgroup Investments Cash Plus Fund 942 7.9 6.9 STeFI Composite

Nedgroup Investments Flexible Income Fund 4 940 4.9 6.9 110% STeFI Call rate

Nedgroup Investments Property Fund 81 Not applicable Not applicable Sector average


Nedgroup Investments Global Equity Feeder Fund 493 -4.8 -2.2 Sector average

Nedgroup Investments Global Balanced Feeder Fund 661 -2.9 -4.7 Sector average

Nedgroup Investments Global Cautious Feeder Fund 3 -9.1 -3.9 USD Libor 1 month (rand equivalent)


Nedgroup Investments Fundisa Fund 11 9.8 8.7 Sector average

Source: © 2010 Morningstar, Inc. All rights reserved. For the period 1 year ending 31 December 2010. Lump sum investment, using NAV-NAV prices with income distributions reinvested.

Market Returns: 1 Year Ending 31 December 2010

All Share Index 19%

All Bond Index 15%

Inflation 3.5%

Source: I-Net

Unit Trust Performance


Statement of comprehensive income Year ended31 Dec 2010

Year ended31 Dec 2009

Income available for distribution R 000's 105 882 568 809Distribution R 000's 111 678 569 552

Statement of financial position 2010 2009Total equity and liabilities R 000's 11 939 265 10 090 836Capital value of unit portfolio R 000's 11 724 863 9 404 749Current liabilities R 000's 214 402 686 087Total assets R 000's 11 939 265 10 090 836

Investment objective

The fund seeks to offer investors long-term capital growth through

active stock selection within the South African equity market.

A minimum of 75% of the fund’s assets will be invested in

domestic equities at all times.

NEDGROUP INVESTMENTS Rainmaker Fund

Income DistributionsDecember

2010December

2009

Class A 60.82 cpu 367.86 cpuClass A1 42.24 cpu 352.48 cpuClass B 0.00 cpu 291.81 cpuClass B1 173.96 cpu 462.58 cpuClass R 98.28 cpu 399.35 cpu

Fees and Charges (VAT incl.)

Initial fee 0.00%Maximum financial adviser fee 3.42%Management fee: Class A 1.71% pa Class A1 2.00% pa Class B 3.42% pa Class B1 0.00% pa Class R 1.14% pa

December2010

December2009

Market Value Rm 11 837 Rm 9 970

Risk Profile Medium - High

PortfolioStructure

Basic Materials 21%

Industrials 14%

Consumer Goods 15%

Consumer Services 9% Telecomms 8%

Oil & Gas 7%

Healthcare 3%

Additional 3%

Financials 16%

Cash 4%





Statement of financial position 2010 2009Total equity and liabilities R 000's 1 121 758 995 998Capital value of unit portfolio R 000's 1 095 679 978 809Current liabilities R 000's 26 079 17 189Total assets R 000's 1 121 758 995 998


An equity fund that seeks to offer investors long term capital growth

through active stock selection within the South African equity market.

A minimum of 75% of the fund’s assets will be invested in domestic

equities at all times.

NEDGROUP INVESTMENTS Equity Fund


2010December

2009

Class A 6.62 cpu 3.77 cpuClass A1 5.71 cpu 3.02 cpuClass R 8.47 cpu 5.24 cpu


Initial fee 0.00%Maximum financial adviser fee 3.42%Management fee: Class A 1.71% pa Class A1 2.00% pa Class R 1.14% pa

December2010

December2009

Market Value Rm 1 121 Rm 993


Industrials 24%

Basic Materials 24%

Financials 19%

Cash 1%Technology 3%

Consumer Services 3%

ConsumerGoods 14%

Telecomms 6%

Oil & Gas 6%PortfolioStructure

Equity Range





Statement of financial position 2010 2009Total equity and liabilities R 000's 667 036 592 030Capital value of unit portfolio R 000's 654 392 567 337Current liabilities R 000's 12 644 24 693Total assets R 000's 667 036 592 030


An equity fund that seeks to offer investors long-term capital growth


The manager utilises a quantitative technique called Price Indifferent

Investing to enhance the ability of the fund to meet its objectives.


equities at all times

NEDGROUP INVESTMENTS Quants Core Equity Fund


2010December

2009

Class A 6.86 cpu 14.25 cpuClass R 7.91 cpu 15.10 cpu


Initial fee 0.00%Maximum financial adviser fee 2.28%Management fee: Class A 1.14% pa Class R 0.86% pa

December2010

December2009

Market Value Rm 666 Rm 592


Consumer Goods 11%

Basic Materials 23%

Industrials 17%

Healthcare 1%Technology 2%

Cash 5%

Financials 18%


Telecomms 8%

Oil & Gas 6%

PortfolioStructure











NEDGROUP INVESTMENTS Growth Fund


2010December

2009

Class A 20.63 cpu 13.38 cpuClass A1 16.67 cpu 10.31 cpuClass B 0.00 cpu 0.40 cpuClass R 28.52 cpu 19.52 cpu


Initial fee 0.00%Maximum financial adviser fee 3.42%Management fee: Class A 1.71% pa Class A1 2.00% pa Class B 3.42% pa Class R 1.14% pa

December2010

December2009



PortfolioStructureBasic Materials 20%

Financials 21%

Cash 3%

Technology 4%

Oil & Gas 4%

Telecomms 5%

Industrials 11%

Additional 10%

Consumer Goods 6%

Healthcare 2%


Equity Range













NEDGROUP INVESTMENTS Value Fund


2010December

2009


December2010

December2009



PortfolioStructureIndustrials 28%

Basic Materials 18% Financials 17%


Healthcare 4%

Cash 5%

Oil & Gas 5%

Consumer Goods 9%

Equity Range







A specialist equity fund that seeks to offer investors long term capital

growth by actively investing in the shares of small and medium sized

companies listed on the JSE. A minimum of 75% of the fund’s assets

will be invested in domestic equities at all times.

NEDGROUP INVESTMENTS Entepreneur Fund


2010December

2009




December2010

December2009


Risk Profile High

PortfolioStructureIndustrials 25%

Financials 15%

Basic Materials 15%

Consumer Goods 11%

Healthcare 5%Technology 2%

Additional 1%

Cash 3%Consumer Services 23%










A specialist equity fund that seeks to offer investors long-term capital

growth by actively investing in the mining and resources sector of the

market. A minimum of 75% of the fund’s assets will be invested in

domestic equities at all times.

NEDGROUP INVESTMENTS Mining & Resource Fund


2010December

2009


December2010

December2009


Risk Profile High

PortfolioStructureBasic Materials 82%

Oil & Gas 14%

Consumer Goods 4%







A specialist equity fund that seeks to offer investors long-term

capital growth by actively investing in the shares of financial services

companies. A minimum of 75% of the fund’s assets will be invested

in domestic equities at all times.

NEDGROUP INVESTMENTS Financials Fund


2010December

2009




December2010

December2009


Risk Profile High

PortfolioStructureBanks 34%

Financial Services 32%

Insurance 17%Foreign Equities 14%

Domestic Cash 2%

Foreign Cash 1%




Initial fee 0.00%

Maximum financial adviser fee 3.42%

Management fee: Class A 1.71% pa




Statement of financial position 2010 2009Total equity and liabilities R 000's 91 828 72 558Capital value of unit portfolio R 000's 90 157 72 046Current liabilities R 000's 1 671 512Total assets R 000's 91 828 72 558


The fund seeks to offer investors medium- to long-term income and

capital growth by actively investing in a mix of local and international

assets. The manager may invest in a combination of local and international

equities, bonds, property and cash. A maximum of 75% of the fund’s assets

may be invested in domestic equities at all times. The fund complies with

Regulation 28 of the South African Pension Funds Act.

NEDGROUP INVESTMENTS Balanced Fund


2010December

2009

December - Class A 45.00 cpu 13.95 cpuJune - Class A 30.75 cpu 32.90 cpu

December2010

December2009


Risk Profile Medium

Local Equities 56%

Local Bonds 23%

Foreign Assets 13%

Local Cash 8%

PortfolioStructure







The fund seeks to offer investors medium- to long-term income and

capital growth by actively investing in a mix of local and international

equities, bonds, property and cash. A maximum of 75% of the fund’s

assets may be invested in domestic equities at all times. The fund

complies with Regulation 28 of the South African Pension Funds Act.

NEDGROUP INVESTMENTS Managed Fund


2010June2010




December2010

December2009


Risk Profile Medium

PortfolioStructure

Local Equities 44%

Local Cash 34%

Foreign Equities 13%

Foreign Cash 7%

Local Bonds 2%




Initial fee 0.00%Maximum financial adviser fee 3.42%

Management fee: Class A

Fixed fee of 1.71% plus a performance fee of 20% of the total positive performance above the high watermark, limited to 2.28% (VAT incl.) over any 12-month period.

Class B 2.00% to 4.28% pa


A flexible, worldwide portfolio aiming to maximise total return for

investors by actively investing in a mix of equities, bonds, property

and cash, both locally and internationally.

NEDGROUP INVESTMENTS Bravata Worldwide Flexible Fund



Income available for distribution R 000's 19 023 22 590Transfer from capital R 000's 5 835 10 260



2010December

2009

Class A 1.60 cpu 2.84 cpuClass B 1.24 cpu 2.51 cpu

December2010

December2009



PortfolioStructure


Foreign Cash 24%

Foreign Bonds 2%

Local Cash 2%

Local Equities 16%




Income available for distribution R 000's 1 977 364Distribution R 000's 1 993 366

Statement of financial position 2010 2009Total equity and liabilities R 000's 86 571 34 741Capital value of unit portfolio R 000's 85 410 33 984Current liabilities R 000's 1 161 757Total assets R 000's 86 571 34 741


The fund targets a long-term annual return of inflation +4-6% over

rolling 5 years. The fund is compliant with Regulation 28 of the

South African pension Funds Act and is suitable for retirement funds.

NEDGROUP INVESTMENTS Core Diversified Fund


2010December

2009

Class B 15.39 cpu 11.28 cpuClass C 13.68 cpu 11.23 cpu


Initial fee 0.00%Management fee: 0.57% pa

December2010

December2009


Risk Profile Medium

PortfolioStructure

Local Equities 60%

Local Cash 14%

Foreign Equities 7%

Local Nominal Bonds 5%

Local Listed Property 4%

Foreign Cash 4%

Local Inflation-Linked Bonds 3%Foreign Inflation-Linked Bonds 1%

Foreign Nominal Bonds 2%




2010September

2010June2010

March2010

Class B 11.04 cpu 14.24 cpu 12.02 cpu 7.21 cpu


Initial fee 0.00%Management fee 0.57% pa


Income available for distribution R 000's 1 090Distribution R 000's 1 104

Statement of financial position 2010Total equity and liabilities R 000's 33 978Capital value of unit portfolio R 000's 33 632Current liabilities R 000's 346Total assets R 000's 33 978


The fund targets a long-term annual return of inflation +2-4%

over rolling 3 years. The fund is compliant with Regulation 30 of

the South African Medical Schemes Act.

NEDGROUP INVESTMENTS Core Guarded Fund

December2010

Market Value Rm 34

Risk Profile Medium

PortfolioStructure

Foreign Cash 6%

Foreign Bonds 4%

Local Cash 28%

Local Equities 35%

Foreign Inflation-Linked Bonds 2%

Local Listed Property 4%

Local Bonds 15%

Local Inflation-Linked Bonds 6%







The fund seeks to offer investors total returns that are in excess of

inflation over the medium-term through active asset allocation and

with a high emphasis on capital protection. A maximum of 75% of the

fund’s assets may be invested in domestic equities at all times. The fund


NEDGROUP INVESTMENTS Positive Return Fund


2010June2010

Class A 2.25 cpu 2.38 cpuClass A1 1.93 cpu 2.08 cpuClass A2 1.95 cpu 1.97 cpuClass B 1.41 cpu 1.55 cpu



Management fee: Class A Management fee: 0 to 2.85% pa (Performance fee calculated daily as 10% of total positive performance above high watermark, limited to a maximum of 2.85% (incl. VAT) over any rolling 12-month period.)

Class A1 Base fee: 0.57% plus performance fee calculated daily as 10% of total positive performance above high watermark, limited to a maximum of 2.85% (including VAT) over any rolling 12-month period.

Class A2 1.42% pa Class B 1.71% to 4.56% pa

December2010

Market Value Rm 34

December2010

December2009

Market Value Rm 5 474 Rm 4 154 Risk Profile Low - Medium

PortfolioStructure

Basic Materials 24%

Consumer Goods 8%

Oil & Gas 3%Industrials 2%

Healthcare 1%

Money Market Instruments 29%

Financials 10%

Telecommunications 4%


Listed Bonds 5%

Cash 10%





Management fee: Class A

Management fee: 0 -2.85% pa (Performance fee calculated daily as 10% of total positive performance above high watermark, limited to a maximum of 2.85% (incl. VAT) over any rolling 12-month period.)

Class A1 3.52% pa Class B 2.79% pa Class C 1.54% pa






The fund seeks to offer investors total returns that are in excess of

inflation over the medium term. A maximum of 40% of the fund’s

assets may be invested in domestic equities at all times. The fund


NEDGROUP INVESTMENTS Stable Fund


2010June2010

Class A 1.53 cpu 1.89 cpuClass A1 1.26 cpu 1.61 cpuClass B 0.71 cpu 1.02 cpuClass C 1.40 cpu 1.68 cpu

December2010

December2009


Risk Profile Low - Medium

PortfolioStructure

Local Equities 40%

ForeignEquities 13%

Foreign Cash 6%

Listed Bonds 5%

Local Cash 36%








A specialist portfolio aiming to secure an optimal overall yield,

comprising both capital and income. The fund invests across

government and parastatal bonds, as well as other fixed income

securities approved by the Financial Services Board.


2010September

2010June2010

March2010

Class A 3.14 cpu 3.07 cpu 3.14 cpu 3.08 cpuClass B 2.48 cpu 2.44 cpu 2.52 cpu 2.48 cpuClass R 3.18 cpu 3.08 cpu 3.13 cpu 3.08 cpu


Initial fee 0.00%Maximum financial adviser fee 0.68%Management fee: Class A 0.57% pa Class B 2.22% pa Class R 0.57% pa

December2010

December2009



MaturitySpread

3-7 years 35%

7-12 years 29%

12+ years 21%

0-1 year 14%

1-3 years 1%

NEDGROUP INVESTMENTS Bond Fund

Income Range



Initial fee 0.00%Maximum financial adviser fee 1.71%Management fee: Class A 0.80% pa Class B 2.39% pa






The primary investment objective of the portfolio is to seek to

generate returns that exceed cash deposits on an after-tax basis,

i.e. returns similar to those available from a bank, but in a far

more tax efficient manner through the generation of dividends,

capital gains and interest income.

NEDGROUP INVESTMENTS Optimal Income Fund

December2010

December2009


Risk Profile Low


2010September

2010June2010

March2010

Class A 0.79 cpu 2.21 cpu 1.57 cpu 1.84 cpuClass B 0.18 cpu 1.64 cpu 1.01 cpu 1.28 cpu

PortfolioStructure

Hedged Equity 47%

Money Market Floating 18%

Preference Shares 22%

Hybrid Debt 5%

Credit Bonds 8%







The fund aims to maximise interest income while protecting the initial

capital and providing immediate liquidity to investors by investing in

short-term money market instruments.

NEDGROUP INVESTMENTS Money Market Fund

Income Distributions2010

December2010

November2010

October2010

September

Class R 0.50 cpu 0.51 cpu 0.54 cpu 0.54 cpu

2010 August July June May


2010 April March February January



Initial fee 0.00%Management fee: Class R 0.57% pa

December2010

December2009


Risk Profile Low

Maturity spread6-12 months 1%

0-3 months 99%

Income Range



Initial fee 0.00%Management fee: Class A 0.40% pa Class B 0.57% pa Class C 0.29% pa






The fund aims to preserve capital and to provide a total return in

excess of that offered by money market portfolios, regular annual

fixed deposits and cash accounts.

NEDGROUP INVESTMENTS Cash Plus Fund

December2010

December2009


Risk Profile Low


2010September

2010June2010

March2010

Class A 1.71 cpu 1.89 cpu 1.93 cpu 2.02 cpuClass B 1.67 cpu 1.84 cpu 1.90 cpu 1.98 cpuClass C 1.74 cpu 1.91 cpu 1.97 cpu 2.05 cpu

Maturity Spread0-3 Months 100%







The fund aims to maximise income and identify opportunistic capital

gains by actively repositioning the portfolio across a dynamic mix of

cash, bonds and other fixed interest securities.

NEDGROUP INVESTMENTS Flexible Income Fund


2010September

2010 June2010

March2010

Class A 21.66 cpu 21.83 cpu 24.25 cpu 22.03 cpuClass A1 19.96 cpu 20.04 cpu 22.54 cpu 20.32 cpuClass A2 19.30 cpu 19.45 cpu 22.42 cpu 19.58 cpuClass B 15.42 cpu 15.18 cpu 18.22 cpu 15.34 cpuClass R 21.46 cpu 20.81 cpu 23.79 cpu 20.87 cpu



Management fee: Class A Management fee: 0 - 1.43% pa (Performance fee calculated daily as 10% of total positive performance above high watermark, limited to a maximum of 1.43% (incl. VAT) over any rolling 12-month period.)

Class A1Management fee: 0-2.00% pa (Base fee of 0.57% plus performance fee calculated daily as 10% of total positive performance above high watermark, limited to a maximum of 1.43% (incl. VAT)

over any rolling 12-month period.)

Class A2 1.25% pa Class B 2.28% pa Class R 0.86% pa

December2010

December2009



Credit Bonds 16%

Money Market Floating 50%

InternationalAssets 17%

Inflation-Linked Bonds 15%

Cash 2% PortfolioStructure

Income Range



Initial fee 0.00%

Maximum financial adviser fee 3.42%

Management fee: Class A 1.14% pa

Statement of comprehensive income 6 Months to31 Dec 2010


Statement of financial position 2010Total equity and liabilities R 000's 80 675Capital value of unit portfolio R 000's 80 084Current liabilities R 000's 591Total assets R 000's 80 675


A specialist portfolio aiming to secure an optimal overall yield

comprising both income and long-term capital appreciation by

investing primarily, but not exclusively, in listed property shares

and collective investment schemes in property. The portfolio shall

maintain a minimum effective exposure to real estate securities

of 50% or such other percentage as prescribed by ASISA.

NEDGROUP INVESTMENTS Property Fund

December2010

Market Value Rm 81



2010September

2010

Class A 0.62 cpu 2.17 cpuClass A1 0.70 cpu 2.22 cpu

Real Estate Holding & Development 74%

Real Estate Investment Trusts 22%

Cash 4%

PortfolioStructure

Income Range



Initial fee 0.00%Maximum financial adviser fee 3.42%Management fee: Class A - Feeder Fund 0.00% pa

- Offshore Fund 1.50% paClass B 2.39% paClass B1 2.75% pa



Income available for distribution R 000's (4 085) 2 014Distribution R 000's 87 0

Statement of financial position 2010 2009Total equity and liabilities R 000's 493 402 249 905Capital value of unit portfolio R 000's 493 266 249 660Current liabilities R 000's 136 245Total assets R 000's 493 402 249 905


A global equity fund that aims to provide investors with long-term

capital growth through active stock selection in global equity

markets. A minimum of 85% of the fund’s assets will be invested

offshore, with a minimum of 75% in equities at all times.


2010December

2009

Class A 0.03 cpu 0.00 cpuClass B 0.07 cpu 0.00 cpu

December2010

December2009



PortfolioStructure

Emerging Markets Equity 7%

US Equity 28%

Japan Equity 6%

Domestic Cash 19%

European Equity 16%

Foreign Cash 11%

UK Equity 13%

NEDGROUP INVESTMENTS Global Equity Feeder Fund




Initial fee 0.00%Maximum financial adviser fee 3.42%Management fee: Class A - Feeder Fund 0.00% pa

- Offshore Fund 1.50% paClass B 1.25% paClass R 0.00% pa






A global balanced fund that aims to provide investors with long-term

capital growth and income through a diversified portfolio of foreign

equities and fixed income securities. A minimum of 85% of the fund’s

assets will be invested offshore.

NEDGROUP INVESTMENTS Global Balanced Feeder Fund


2010December

2009

Class A 1.24 cpu 0.56 cpuClass B 0.00 cpu 0.00 cpuClass R 0.41 cpu 0.27 cpu

December2010

December2009



PortfolioStructureForeign Equities 60%

Foreign Fixed Interest 19%

Foreign Alternative Assets 3%

Foreign Property 1%

Foreign Cash 7%

Domestic Cash 10%



Initial fee 0.00%Maximum financial adviser fee 3.42%Management fee: Class A 0.00% pa

Offshore Fund 1.50% paClass A1 0.00% paClass B 1.25% pa

Statement of comprehensive income Year Ended31 Dec 2010

2 Months Ended31 Dec 2009

Income available for distribution R 000's (12) 0Distribution R 000's 0 1



A low-risk asset allocation fund that aims to provide investors with

steady long-term capital growth, while at the same time controlling

the level of downside risk. The fund will invest in a diversified

portfolio of foreign equities and fixed income securities with a

maximum equity exposure of 50%. A minimum of 85% of the fund’s

assets will be invested offshore.


2010December

2009

Class A 0.00 cpu 0.56 cpuClass A1 0.00 cpu 0.99 cpuClass B 0.00 cpu 0.00 cpu

December2010

December2009



PortfolioStructure

Domestic Cash 3%


Foreign Bonds 24%

Foreign Convertibles 6%

Foreign Cash 42%

NEDGROUP INVESTMENTS Global Cautious Feeder Fund




Initial fee 0.00%Management fee 0.00% pa






A savings fund where you can save money for your children’s

education and receive a government grant as a bonus for your savings.

NEDGROUP INVESTMENTS Fundisa Fund


2010December

2009

Class A 8.75 cpu 10.70 cpuClass G 8.75 cpu 10.74 cpu

December2010

December2009



PortfolioStructure

of the CentralFundisa Fund

Cash 100%



DisclaimerCollective Investment Schemes in Securities (CIS) are generally medium- to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. The price of each unit is aimed at a constant value. The total return to the investor is primarily made up of interest received, but may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the portfolio. CIS are traded at ruling prices and can engage in borrowing and scrip lending. Different classes of units apply to these portfolios and are subject to different fees and charges. A schedule of fees and charges and maximum financial planner fees is available on request from Nedgroup Investments. Financial planner fees may be paid and if so, would be included in the overall costs. A Feeder Fund is a portfolio that, apart from assets in liquid form, consists solely of participatory interests in a single portfolio of a collective investment scheme. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Portfolios may be closed or capped at any stage.

Nedgroup Investments is a member of the Association of Savings & Investment South Africa.

Contact us

Client Service Centre (within South Africa) (outside South Africa) Tel: 0860 123 263 Tel: +27 21 416 6011 Fax: 0861 119 733 Fax: +27 11 263 6067

Email: [email protected] Website: www.nedgroupinvestments.co.za

Western Cape BoE Clocktower, Clocktower Prescient, V&A Waterfront, Cape Town, 8001 PO Box 1510, Cape Town, 8000

Gauteng & Pretoria Nedbank Building Second Floor I Block 135 Rivonia Road, Sandown, 2197 PO Box 582, Johannesburg, 2000

Durban Nedbank Ridgeside, 2 Ncondo Place, Umhlanga, 4320 PO Box 50995, Musgrave, 4062

Copies of the audited financial statements for Nedgroup Collective Investments Limited,

together with each of the Nedgroup Investments unit trust portfolios are available

on request, free of charge. Simply call our Client Service Centre or send us an email to

[email protected] to request a printed or electronic copy.

Nedgroup Collective InvestmentsCompany Registration Number: 1997/001569/06

TrusteesThe Standard Bank of SA Limited, PO Box 54, Cape Town, 8000

DirectorsD Macready, NA Andrew, CE Sevenoaks, MA Hoosain, J Bestbier

Company SecretaryNedgroup Secretariat Services (Proprietary) Limited

BR

AN

DLA

B/4

3

nedgroup investments · nedgroup investments abridged annual report 2010 01. 02. nedgroup...

Documents