A revolutionary fixed income fund for South African investors requiring a total solution to meet their domestic and global fixed interest needs.

Maximising return

The Investec Diversified Income Fund is a flexible fixed interest fund that aims to provide investors with a maximum total return (income plus capital appreciation). The fund may actively allocate between South African bonds, cash, credit, listed property and international fixed income assetsincluding currencies, corporate and emerging market debt. Up to 25% of the Investec Diversified Income Fund’s assets may be invested offshore, providing excellent diversification opportunities.

Flexibility to adapt to changing market conditions

We implement our best fixed income ideas with conviction, while being cognisant of the risk of capital loss. This means that we have the freedom to have sizeable exposures to those assets which we believe offer the best opportunity to maximise yield and to grow capital. Our focus is on finding the best investment opportunities wherever they occur in bond, credit and currency markets in South Africa and abroad. We regard active asset allocation as key to achieving outstanding returns, but duration, yield curve positioning, country exposures and currency management also play an integral part in generating outperformance.

Why choose the Investec Diversified Income Fund?

• An actively managed, well diversified fixed income portfolio with multiple sources of return.
• A globally integrated approach to fixed interest investing, capturing opportunities that global fixed interest markets offer.
• Offshore portfolio managed by a global team with a wealth of experience.
• Great blend to an existing fixed income portfolio.

 

Offshore portfolio managed by a global team of specialists

The offshore component of the Investec Diversified Income Fund is currently invested in our flagship Investec Global Absolute Income Fund. Our fixed income team, based in London, has an excellent track record in delivering competitive returns on global fixed income assets. The Investec Global Absolute Income Fund represents our best fixed income ideas, offering investors access to currency, government bond, corporate and emerging market debt opportunities worldwide. These multiple sources of uncorrelated returns mean that investors benefit from a well diversified portfolio. The offshore portfolio will give investors in the Investec Diversified Income Fund exposure to major currencies. The decision to hedge out the foreign currency exposure will depend on the investment team’s views on the rand.

Key Facts
Unit trust classification:	Domestic Fixed Interest Varied Specialist
Benchmark:	Benchmark: STeFI Composite (ALBI 1-3 for periods before 1/7/2011)
Risk profile:	Low volatility
Minimum investment:	A lump sum of R10 000 or a monthly debit order of R1000
Income distribution:	March, June, September and December
Portfolio managers:	André Roux and Malcolm Charles
Initial charges (excl. VAT)	0.40% payable to the financial adviser 0% to Investec
Annual management fee (excl. VAT)	A class: 1%

A highly disciplined investment process

We have a highly disciplined global fixed income investment process, which enables us to identify good opportunities for income and capital growth within acceptable limits of risk. In deciding on our selection of fixed income assets we look at factors such as economic growth, inflation, exchange rates and interest rates. We forecast the performance of cash, bonds, emerging market debt, currencies and listed property, looking ahead six months to one year. However, markets can be very unpredictable over the short and medium term. Therefore, we also make tactical decisions, aimed at exploiting opportunities that occur over days, weeks or months.

Who should invest? 

• Investors wanting exposure to both South African and offshore fixed income and currency markets.
• Investors who require a single globally integrated portfolio where their total fixed interest assets are actively managed.
• Living annuity investors seeking additional sources of return.