Nedgroup Investments, part of Johannesburg-based Nedbank Group, has launched a cautious fund - managed by JP Morgan - to South African investors.

The Global Cautious Fund is the latest development in Nedgroup’s “Best of Breed” investment management partnering strategy, aimed at giving South African investors access to managers and strategies from around the world.

Designed to generate long-term returns above cash, but with volatility below that of equities, the Global Cautious Fund aims to beat deposit account returns and deliver one month Libor plus 3 per cent per annum.

The fund will be managed on a discretionary basis by Talib Sheikh, senior portfolio manager at JP Morgan, and is based upon JP Morgan’s Global Capital Preservation Fund. Minimum investment is $4,000 (or equivalent) for retail investors and $100,000 for institutional investors.

“The Global Cautious Fund provides our South African investor base with access to one of the most experienced ‘total return’ managers and teams in Europe,” said Andrew Lodge, managing director of Nedgroup Investments.

“This is also an ideal long term investment for those seeking to move out of cash and bonds and who are looking for greater international diversification – while acting as an alternative strategy to low-risk funds of hedge funds and money market funds.”

Nedgroup Investments’ “Best of Breed” initiative has already seen the firm partner with UK-based Gartmore Investment on a global equities product and Switzerland’s Sarasin & Partners to provide a global balanced fund.