Rational decision-making during COVID-19
By Nic Andrew, Head of Nedgroup Investments
The decisions you make now could have significant long-term consequences
Time to read: 5 min
To achieve an optimally balanced portfolio of assets, our fund managers have to consider an impossibly large number of factors that could influence positions in the fund.
In a time of crisis, one often hears people remark that “this time it’s different” as the narratives around market downturns almost always change; in this case it is the coronavirus while in the Global Financial Crisis it was mortgaged-backed securities.
Since 2001, when Veritas began managing their Global Focus Strategy, which the Nedgroup Investments Global Equity Fund is based upon, they have outperformed their peer group by almost 4% p.a. which is outstanding.
With every investment decision there is a tug of war - a battle between risk and reward, equities and bonds, dividends and growth, yield and credit, and so on.
As our parent company, Nedbank Ltd, further entrenches the United Nations Sustainable Development Goals into its business strategy, this has provided the stage to further embed responsible investment into Nedgroup Investments’ corporate culture and the way in which our funds are managed.
Many South African investors are, however, hesitant to approach offshore investing and consider the process intimidating.
Amid the tide of reports of doom and gloom for the local economy, supported recently by Moody’s official downgrade of South Africa to “junk bond” status, financial planners are faced with the dilemma of what to do with their clients’ long-term investments and savings.
Section 37C is viewed as a social security measure to ensure that dependants of deceased retirement fund members are not left without financial support.