Splendid performance by the Edge 28 fund
The Old Mutual Edge 28 Life Fund has t urned in a phenomenal annualised return of 17.8% (to June) in its f irst three years and attracted more than R3bn in assets under management.
This is well in excess of its CPI + 6% performance target and the performances of other balanced funds, which struggled to generate little more than a nominal 5%.
A unique Regulation 28 fund, Edge 28 is managed by Old Mutual Investment Group’s MacroSolutions boutique head, Peter Brooke, and equities specialist Arthur Karas.
“No-one has anything like it and we’ve used the full f lexibility of the Regulatory changes to drive it,” says Brooke. “The fund invests primarily in growth assets with the maximum asset allocation under Regulation 28. It’s mostly invested in equities, listed property and alternatives – such as private equity and hedge funds – with a small exposure to fixed interest and cash.”
One reason that MacroSolutions can do this, he explains, is because the product is not set up as a unit trust, but as a life wrapped fund on the Old Mutual platform with access to all its building blocks in a compliant manner.
Currently more than 10% of the fund is invested in private equity and hedge funds, which are geared to generate superior long-term returns. On the equities side it’s able to leverage most of Old Mutual’s offerings, including its international assets.
“The fund is ideal for someone wishing to invest over at least a 10-year period,” says Brooke. “We wouldn’t recommend it over three years. If you’re modestly conservative and nearing retirement, you’d probably be best advised to skip down a level on the risk side. On the other hand […] people are increasingly likely to live