The Investor - Moneyweb's monthly investment magazine Issue 6 | Page 34

Given the current market conditions, however, it may well be argued that you would like a little more protection in a flexible fund. The Foord Flexible Fund of Funds, for instance, currently has more than a quarter of its portfolio in cash, and the Nedgroup Investments Bravata fund is even more defensively positioned with over 40% of its assets in cash and money market instruments. In both cases, this has certainly limited their ability to benefit on the up-side, but in a market pull-back it will certainly protect investors on the downside. Another factor that makes these funds attractive is that, perhaps contrary to what one might expect, they are generally quite reasonably priced. The total expense ratio (TER) on the Imalivest fund is just 1.13%, and most of these funds show TERs of under 2%. Quantum is the biggest exception at a TER of 3.53%. Taking a slightly longer term view, the below table shows the top performers over the last five years. Nine of the funds on this list are also in the top ten over three years. The only addition is the Coronation Market Plus Fund. It replaces the Platinum fund that does not yet have a five year track record. Again, none of these funds managed to perform better than the MSCI World Index. The majority did however show better returns than the local All Share and all of them comfortably out-performed CPI+5%. Top performing worldwide multi asset flexible funds funds to 31 July 2015 Fund 5 Year annualised total return Foord Flexible FoF R 21.09% Imalivest MET Worldwide Flexible Fund 20.75% Coronation Optimum Growth Fund A 20.24% Flagship IP Worldwide Flexible FoF 19.80% Flagship IP Worldwide Flexible Fund 18.75% Efficient BCI Worldwide Flexible Fund 17.48% Nedgroup Investments Bravata Worldwide Flexible Fund A 17.24% Marriott Worldwide Flexible FoF 16.80% Coronation Market Plus Fund 15.98% Quantum BCI Worldwide Flexible FoF 15.89% FTSE/JSE All Share Index 16.35% Worldwide multi asset flexible fund category average 16.29% MSCI World Index (in ZAR) 22.22% CPI plus 5% 10.60% Source: Morningstar Note: There are only five funds in this category with \