Our Secured Investment is an FSCA-registered collective investment in participation bonds. The low risk associated with investing in a participation bond is further minimised through strict regulation by the Collective Investment Schemes Control Act.
Fedgroup Participation Bond Managers has an internal audit, risk and compliance committee. Grant Thornton audits the FedBond Fund on an annual basis and these financial statements are submitted to the FSCA.
Fedgroup’s Secured Investment is governed by rules that assure its stability and security as an investment vehicle
The FedBond fund holds a portfolio of first mortgage bonds over South African commercial, industrial and retail property. The fund may only lend up to 75% of the value of a property to be mortgaged, which ensures capital preservation, as the 25% serves as additional security that can be used as a recovery mechanism if need be.
In the event of a default by a borrower, Fedgroup will take steps to recover the outstanding amount. Certainty of capital preservation ensures protection of the initial investment amount.