NAV on 2017/06/22
|NAV on 2017/06/21
|52 week high on 2017/05/02
|52 week low on 2016/06/27
|Total Expense Ratio on 2017/03/31
|Total Expense Ratio (performance fee) on 2017/03/31
Nedgroup Collective Investments (RF) (Pty) Ltd.
South African--Equity--Mid and Small Cap
ASISA category average
Nedgroup Investments Entrepreneur comment - Dec 16
As we look back on 2016, the scoreboard reflects the following:
- JSE All Share Index +1.0% - JSE Mid-cap Index +27.5% - JSE Small-cap Index +21.0% - Nedgroup Investments Entrepreneur Fund +8.4%
We have discussed the reasons for the fund's underperformance against its most logical benchmark indices at length during the course of 2016, which for the sake of completeness was largely due to:
- a very underweight exposure to gold and platinum producers in the first half of the year; and
- a relatively overweight exposure to select rand hedges which (although in the most part had a very successful financial year) were undermined by the strength of the rand off the very weak base of December 2015 following the shock removal of the then Finance Minister by President Jacob Zuma.
As we look ahead to 2017, we do so without a great deal of optimism. Economic growth in South Africa remains weak, albeit expected to be slightly stronger than 2016. Government policies are not supportive of growth and political surprises motivated by self-interest remain a high risk and will be keenly felt by our currency. Despite the confident promises and bluster of Donald Trump, what will actually be delivered remains to be seen and the UK and Europe are likely to remain mired in their own problems for the year.
We continue to worry about the sustainability of the stimulus that has been applied to the Chinese economy in the desire to maintain economic growth. In the context of the above we remain focused on finding and building meaningful positions in businesses driven by competent, shareholder return-minded management that are reasonably priced and in which we have a high degree of confidence in their ability to grow notwithstanding the economic circumstances. We believe all the fund's larger positions all reflect these characteristics and welcome investor interest to discuss any of these in more detail.
As at the end of December 2016 the Nedgroup Investments Entrepreneur Fund's weighted Price to Earnings, dividend yield and Price to Book ratios were 11.2X, 3.8% and 1.9X respectively.
The portfolio is suitable for investors who require specific exposure to small- and mid-cap sector shares as part of their overall investment strategy , with maximum capital appreciation as their primary goal over the long term. Equity investments are volatile by nature and subject to potential capital loss. Due to its specialist nature, the portfolio will typically display higher volatility than a general equity portfolio.