The name change has been approved by the Financial Services Board
Rezco Managed Plus Fund (formerly Rezco Prudential Fund), has this month in August 2015, delivered a consistently successful 5 year track record for investors. This is shown in the graph below.
The reasons for the name change to Rezco Managed Plus Fund are:
- At the time of launching this particular Rezco Fund, the industry categorisation for funds mandated for the Pension & Retirement sector were termed “Prudential’ and the requirements were termed “prudential requirements”.
- The Prudential requirements are now governed in terms of Regulation 28 of the Pension Funds Act (“Reg 28”) and as such portfolios managed accordingly are now termed Regulation 28 compliant.
- The Rezco Managed Plus Fund (formerly the Rezco Prudential Fund), is Regulation 28 Compliant, and the “Prudential” part of the name is therefore no longer descriptive.
- Rezco also desires to avoid confusion in the minds of investors and so wishes to distinguish our unit trusts from any unit trusts managed in South Africa by Prudential Investment Managers.
In 2013 the Association for Savings and Investments SA (ASISA) announced changes to unit trust classifications. The aim of the new classification standard is to remove much of the confusion that investors experience when faced with investment choices.
The ASISA change’s core objectives are of promoting investor awareness and understanding of the various fund types. The new classification is based on the fund’s investable universe and has been designed with three tiers:
- Tier one tells the investor WHERE their money will be invested, for example mainly within
South Africa, offshore, or in which specific region
- The second tier explains WHAT the fund invests in, for example in equity, bonds or multiple asset classes
- The third and final tier gives more detail as to the asset allocation or the investable universe of the portfolio, for e.g. which specific equity sector.
As a result of the above, the Rezco Prudential Fund was placed in the South African Multi-Asset High Equity Category. The information above is highlighted because the Investment Policy of the Rezco Prudential Fund, now the Rezco Managed Plus Fund, made reference to the old category namely Domestic Asset Allocation Prudential Variable Equity. This was obviously redundant and all references to such have been removed.
Rezco Managed Plus Fund continues as before with the same Rezco process & philosophy, and will offering investors slightly higher allocation to growth assets and potential returns than the Rezco Value Trend Fund. The Rezco Managed Plus Fund is mandated to comply with Regulation 28 of the Pension Funds Act, and is suitable for investors seeking good risk adjusted returns as well as growth, with suitable Asset Allocation Protection in difficult Markets.
The Rezco Managed Plus Fund will retain the JSE code REPF.
The track record is shown in the graph below illustrating the outperformance of Rezco Managed Plus Fund relative to the JSE 203 (All Share Index), the Industry ASISA category, and Inflation +7%, over the long term.
We also show the positioning of the current Rezco Fund range. (Please note that the Rezco Global Fund has moved another step forward. The Global fund has been approved by the Financial Services authority in Luxemburg, and is launched only for investors with funds overseas in August 2015. The Rezco Global Fund will only become available to investors with funds in South Africa once we have obtained the required approval from the South African Financial Services Board.)