Fund Choice Made Simple!

RaboDirect's fund selection policy has simplicity at its core.  With so many different investment choices on offer, choosing an investment option can seem overwhelming, so choosing funds by sector is a useful way to design a portfolio.

The principles of diversity, balance and choice are the key considerations underpinning RaboDirect's fund selection policy:

• Diversity: The customers must have access to a diversified selection of fund managers
   and funds.

• Balance: The customers must have access to a broad selection of fund managers and
   funds across Asset Classes and Investment Strategies. Within sectors there are funds
  with different management styles (such as growth or value) which vary in attractiveness according to economic conditions.

• Choice: The customers must be enabled to make educated investment decisions by providing them with the tools, technology and information necessary to make an
  informed choice about the fund managers and funds.

When we pick an external fund manager we have taken care to choose them based on their fund management credentials. We look at  a number of factors such as their experience in the fund management industry, their financial strength, their performance in the fund management industry, their investment philosophy  and  the amount of assets they have under management.

When choosing additional funds we don't just focus on a fund's past performance. We seek to add funds from new sectors which will broaden the investment choice for our investors using independent ratings from agencies such as Standard and Poors and Morningstar. 

Sometimes you will find that some of our funds do not have an independent rating. There are a number of reasons for this. In the case of a new fund it may not have long enough past performance history or sufficient assets under management yet to be eligible for an independent rating. Fund ratings are being constantly reviewed by S&P, so please ensure that you have the most up-to-date listing of fund ratings.  This information is available on our website.