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Investec Absolute Balanced Fund

Investment objective

The Investec Absolute Balanced Fund targets inflation-beating returns measured over three year periods, while actively managing downside risk.

Strategy

The fund invests in a mix of South African equities, bonds and money market instruments. Regulation 28 currently limits equity exposure to 75% of the fund (90% with listed property). Significant portions of the fund are however protected from negative returns using financial instruments such as equity and bond index futures. The aim is to preserve capital from a downward move in the market.

Fund features

  • Strong focus on capital preservation and absolute returns
  • Low probability of negative returns over 12 month periods
  • Preserves wealth in real terms, regardless of whether markets are rising or falling
  • Compliant with Regulation 28 of the Pension Funds Act, therefore suitable for retirement funds

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