NAV on 2020/04/03
|NAV on 2020/04/02
|52 week high on 2020/01/20
|52 week low on 2020/03/19
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
Fairtree Asset Management (Pty) Ltd.
FTSE/JSE Capped Shareholder Weighted All Share Total Return Index (Capped SWIX)
Stephen completed his MBA at Stellenbosch Business School in 1996. He began his Asset Management career in 1997 as an Industrial Analyst with Southern Asset Management. In 2000 he joined RMB Asset Management as a Diversified Industrial Analyst and remained involved in industrial research until 2007. In 2001 he moved into the Resources team also as an analyst. He progressed to Head of Resources research in 2007, and held the position until the end of 2009 when he moved permanently onto portfolio management of institutional and retail portfolios. In 2001 he qualified as a CFA. He began his Portfolio Management career in 2002, managing the RMB Value Fund, and became a full time Portfolio Manager of Institutional Balanced Funds and Retail Equity Funds in 2010. Stephen joined Fairtree Capital in 2011 as a Portfolio Manager and currently manages the Fairtree Assegai Long Short Equity Fund and the Fairtree MET Equity Fund.
Cor started his career in the mining industry in 1996 as an engineer for De Beers. Between 2000 and 2008 he was involved in management consulting, working for Bain & Company and Seabury Group where he advised corporations in Johannesburg, New York and Sydney on strategy, operational optimisation and revenue enhancement. During this time, he gained in-depth knowledge of the mining, telecommunication, aviation, public sector and manufacturing industries. Cor moved to the fund management industry in 2008, where he was head of resources and a fund manager at RMB Asset Management, and a subsequently as sell-side analyst for HSBC, covering the platinum and diversified mining sector. In 2012 Cor joined Fairtree to co- manage the Fairtree MET Equity Fund. Cor ascribes his initial value investment style to the influence of investment icons such as Benjamin Graham and Warren Buffet. However, with experience in management consulting he realised the importance of strategic positioning of companies within an industry and their relative competitive advantage tying into the quality of their business.
Fairtree Equity Prescient Comment - Dec 19
The FTSE/JSE All Share Index (ALSI) increased by 3.3% during December. FTSE/JSE Shareholder Weighted Index (SWIX) increased by 3.7% and FTSE/JSE Capped Shareholder Weighted Index (Capped SWIX) increased by 3.1%. The Rand strengthened by 4.6% during the month. Resources, Industrials and Financials increased by 7.0%, 2.3% and by 0.7% respec..vely.
During December, Bonds increased by 1.9% and Cash returned 0.6%. The MSCI Emerging Market Index increased by 7.2% (USD), outperforming the MSCI World Index which increased by 2.9% (USD). The MSCI South Africa Index increased by 9.6% (USD).
During December Iron Ore fines increased by 2.6% to $86.0/t and Thermal Coal decreased by 4.4% to $73.5/t. Brent Crude oil increased by 10.3%, ending the month on $66.0/bbl. Gold was up 3.6% to $1517.3/oz and Pla..num increased by 7.9% to $966.6/oz. Palladium increased by 5.6% to $1945.6/oz.
Precious metals remain our favoured investment sector. We expect ongoing geopoli..cal risk as well as central bank easing to maintain gold’s upward price momentum, pulling pla..num alongside. The restricted supply of rhodium and palladium provide suppor..ve fundamentals outweighing any threats of slowing auto demand, we remain of the view that we are in an upcycle and the PGM producers should con..nue to outperform. Iron Ore strengthened during the month underpinned by Vale’s guidance that it’s unlikely to meet its produc..on target. We also saw large draw downs in China which reads well for demand and is suppor..ve of metal prices.
The VIX Index (Vola..lity or ‘Fear’ Index) increased by 9.2% to 13.8 during December.
During December the SA macro remained somewhat subdued and the severe load shedding experience at the beginning of the month will have an adverse effect on investor sen..ment as well as the economy most notably tourism, one of SA’s key GDP contributors during the December month.
The fund’s performance was posi..vely affected by posi..ons in Impala (27.5%), Sibanye (24.3%), Northam Pla..num (15.5%) and Naspers (9.4%) while posi..ons in Truworths (-3.7%), Woolworths (-6.9%), Richemont (-1.7%) and Foschini (-1.5%) detracted from performance. The fund invests in a number of focussed strategies. Amongst these strategies we are overweight Earnings Growth (Rand Hedge Consumer Discre..onary), Cyclical (Diversified Mining, Pla..num), Defensive (Gold Mining) and Value (Property, Local Consumer Discre..onary).
The Fairtree Equity Prescient Fund will be a general equity fund. The objective of the fund is to offer medium to long term capital growth. In order to achieve this objective the fund will invest in selected shares across all industry groups as well as across the range of large, mid and smaller cap shares. The fund will seek to capture value by focussing on equity selection opportunities. The portfolio will predominately invest in South African markets, but is however permitted to include investments in offshore jurisdictions subject to the investment conditions determined by the Registrar from time to time. The portfolio is permitted to invest in listed and unlisted financial instruments in line with the conditions as determined by legislation from time to time.