NAV on 2019/01/18
|NAV on 2019/01/17
|52 week high on 2018/01/25
|52 week low on 2018/12/10
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
Prescient Management Company Ltd. (PIM)
South African--Equity--Large Cap
FTSE/JSE Top 40 Index
Eldria is Chief Investment Officer at Prescient with 18 years of investment management experience.
Eldria started her career at Deutsche Securities as an equity analyst. She moved to Investment Solutions in 1997, and over the following eight years covered all areas of the business, gaining a broad knowledge of the market and the industry. Before joining Prescient, Eldria was responsible for specialist portfolios, including equity, bond, income, property and cash portfolios and was a director of Investment Solutions Unit Trust Limited.
Prescient Equity Active Quant comment - Sept 18
Trade war rhetoric was once again the primary source of market volatility last month. Initially, markets were buoyed by lower than expected tariffs placed on imports by both the US and China, as the trade war was then deemed to be less severe than initially expected. At the same time, the US invited China to further trade talks, on which practitioners were most likely placing a high probability of a promising outcome. At the drop of a dime, this quickly changed when China called off the talks, which sent emerging markets into a tailspin. The MSCI World index added 4.53% in Q3 as demand for quality assets rose. Conversely, the MSCI Emerging Markets index lost -2.02% over the same period as risk off sentiment took its toll. US and EU markets were mostly up over the quarter with the S&P 500 and the CAC40 indices closing 7.20% and 3.19% up respectively. The DAX index lost -0.48% in Q3 as fears grew that Germany was next in line to face the wrath of Trump's nationalist policies. Domestically, SA officially entered a recession, which caught markets off guard to some extent. To counter this, President Ramaphosa released plans to ignite domestic growth, which was well received by markets. Nevertheless, the JSE All Share index ended the third quarter -2.17% in the red. This was driven largely by the Industrials sector, which shed -8.25% over the quarter. The Resources and Financials sectors on the other hand proved to be more resilient and ended up 4.60% and 4.20% respectively. The Prescient Equity Top 40 Fund returned -4.81% for the month (gross of fees), marginally behind the FTSE/JSE Africa Top40 Index (-4.70%).
Contributors to Performance
The positions that contributed the most to the performance of the fund for the month were Anglo American PLC (+7.77%), BHP Billiton (+1.26%) and Old Mutual Ltd (+4.64%).
Detractors from Performance
The largest detractors from the months' performance were Naspers (-6.36%), Compagnie Richemont (-8.93%) and Aspen (-41.88%).
The Fund aims to achieve returns above the FTSE/JSE Africa All Share Index by investing in shares that offer value relative to its trading price.
The Fund uses quantitative techniques (multi-factor model) to build an active equity portfolio which aims to generate superior performance in a structured manner. The equity selection is done purely quantitatively on a bottom-up basis.
The selection process targets those shares that offer the best economic value according to predefined income statement, cashflow statement and balance sheet matrices. To enhance equity selection further, behavioural and other quantitative techniques are used. The quantitative process maintains some positive index type characteristics, such as low turnover and thus lower cost and high liquidity.