why global asset allocation and not region specific funds?
We at Nedgroup Investments believe that the optimal structure for an international portfolio is one that provides you with a spread of global investments, both in terms of investments and currencies. This structure optimises not only the returns, but also the downside risk. In deciding on an effective geographic asset allocation, the Nedgroup Investments asset management team in London firstly assessed the likely impact on its South African investor base. The asset allocation is designed to reflect the geographic allocation of the MSCI (Morgan Stanley Capital International) World Index with our asset management team dedicating its resources to identifying and managing the top and best suited fund managers within each geographic region. The selected asset allocation model has taken into account the positive effect that constructive diversification provides in managing risk and providing long-term capital growth. Our quantitative research shows that investing in even the most favourable
