NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2018/09/21
|52 week low on 2019/08/27
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
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 Top 40 comment - Mar 19
Despite a broadly flat to slightly negative March, the first quarter of the 2019 calendar year was largely positive for the listed South African equity market. The FTSE/JSE Capped SWIX gained 3.85% over the quarter, whilst the better rand hedged and larger cap JSE Top 40 Index gained an impressive 8.45%, which was the largest quarterly gain since 2017Q3. This was primarily led by the resource and industrial sectors, the FTSE/JSE Africa Resources and the FTSE/JSE Africa Industrials Indices gained 16.18% and 8.80% respectively. During a quarter that saw the country experience crippling electricity outages, heightened uncertainty over its sovereign debt investment grade rating, a record breaking tax revenue shortfall and last but not least an announcement by President Ramaphosa to nationalize SA's central bank, the South African rand weakened by -1.08% against the US dollar and with that, the FTSE/JSE Financial Index lost -0.44% over the quarter.
The JSE Top 40 Index was rebalanced during March. The most notable changes were the inclusion of Gold Fields Ltd (GFI) and Anglo-American Platinum (AMS) to the index, as well as the corresponding exclusions of Life Healthcare (LHC) and Reinet (RNI). Although we take subtle stock tilts from the benchmark, the investment process for the Fund is designed to limit the active stock specific risk whilst also maintaining broad sector neutrality. Low riskperformance enhancement strategies are employed to generate modest systematic alpha over the benchmark index. The Fund returned 8.76% (gross of fees), which was 0.31% ahead of the benchmark index for the quarter.
Contributors to Performance: The positions that contributed the most to the absolute performance of the Fund for the month were Naspers (+9.42%), the BHP Group (+8.83%) and British American Tobacco (+18.72%).
Detractors from Performance: The largest detractors were Absa Group Limited (-15.78%), Richemont (-2.19%) and Nedbank (-11.66%).
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.