Where now for the risk averse investor

1
Where now for the risk averse investor?
This communication is directed only at
professional financial advisers. It should not be
distributed to, or relied on by, private
customers.

• John Long
• Sales Manager
• Investec Asset Management
• November 2004

2
Have your clients got what they need?

• Who are your clients?
• Majority low to medium risk
• Unsophisticated detail not too important
• What is important to them?
• See some growth
• Access
• No Shocks
• No sudden loss of capital

3
Investec Cautious Managed Fund

• Bonds and equities together produce smoother
  returns
• Additional profit opportunity from switching
• 5050 philosophy
• Disciplined profit taking
• Value added by comparison with separate funds

Cautious
Optimistic
4
Tactical asset allocation
Source Investec
5
Tactical asset allocation
Source Investec
6
Avoiding the worst
InvestecCautiousManaged Fund -5.16 23.43 8.40

FTSEAll Share Index -22.31 24.68 7.52
FTSE Gilts5-15 YrsIndex -8.76 19.44 7.90
Worst CalendarYear Return
Best CalendarYear Return
Annualised Growthsince Fund launch(7.6.93)
Source SP, dates to 01.01.04, bid to bid,
income (net of PEP/ISA tax) reinvested.
7
Calendar year returns ()
30
20.6
18.9
20
Bad years for equities
10
0
1.8
Bad years for gilts
-3.2
-5.7
-10
-8.8
-13.0
-20
-22.3
-30
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Investec Cautious Managed Fund
FTSE Gilts 5-15 years Index
FTSE All Share Index
Source SP, dates to 1.01.04, bid to bid,
income (net of PEP/ISA tax) reinvested.
8
Performance of Investec Cautious Managed Fund vs
FTSE All Share FTSE Gilt Index
Performance data source SP, 04.06.1993 to
29.10.2004, bid to bid, income net of basic rate
tax reinvested.
9
Investec Cautious Managed Fund Credentials

• c.40 Market Share of IFA Net Sales into Cautious
  Managed Sector
• AA ratings by both SP and Forsyth-OBSR
• SPs Best UK Defensive Fund for 2002, 2003 and
  2004
• SPs Best UK Defensive Fund over 5 years, 2004
• Bloomberg Moneys Best Managed Fund 2003
• Lipper Citywire All Stars Awards 2004
• Best Management Group, Mixed Assets
• Fund of the Year, Mixed Assets Balanced - UK

Source Investec Asset Management / IMA
(www.investmentfunds.org.uk lthttp//www.investment
funds.org.ukgt).
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Important Information

• This communication is directed only at
  professional financial advisers. It should not be
  distributed to, or relied on by, private
  customers.
• Telephone calls may be recorded to confirm your
  instructions.
• While opinions stated are honestly held, they are
  not guarantees and should not be relied on.
• Any information contained in this communication
  is believed to be reliable but no warranty is
  given as to its accuracy or completeness.
• Investec Asset Management
• 2 Gresham Street Telephone [phone]
• London Email broker_at_investecmail.com
• EC2V 7QP Website www.investecfunds.co.uk
• Issued by Investec Fund Managers Limited,
  authorised and regulated by the FSA. November
  2004.