NAV on 2020/02/25
|NAV on 2020/02/24
|52 week high on 2019/04/23
|52 week low on 2019/08/27
|Total Expense Ratio on 2019/12/31
|Total Expense Ratio (performance fee) on 2019/12/31
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 Team
Prescient Equity Comment - Sep 19
The third quarter of 2019 delivered varied returns across global equity markets. The MSCI World, which has approximately 60% US weighting, and S&P500 Indices returned +0.08% and +1.19% in US dollars respectively following two consecutive rate cuts by the Fed. However, the global economic slowdown, rising trade war tensions and the strengthening US dollar have hampered emerging markets as evidenced by the MSCI Emerging Markets Index losing - 5.11% in US dollars over the quarter. For Britain, the domestic political turbulence and Brexit uncertainty hindered the FTSE 100 over the quarter, resulting in a dispiriting return of -3.52% in US dollars.
On shore, the economic burden of debt-ridden State-Owned Enterprises, faltering economic growth as well as the global market risk sentiment caused the rand to retract by -7.45% during the quarter. Consequent to this and escalating uncertainty surrounding the debt-relief bill and the National Health Insurance, the financial sector was the laggard of the quarter with the FTSE/JSE Africa Financial 15 Index losing -9.26%. From a broader market perspective, the FTSE/JSE Capped SWIX All Share and FTSE/JSE Top 40 Indices delivered -5.11% and -5.22% in ZAR respectively. This is the worst third-quarter performance since Q3 2011 on the back of a brilliant start to 2019. However, platinum miners and gold producers proved to be more resilient in the risk-off environment, with the likes of Northam (+40.88%), Impala (+36.60%) and Harmony (+36.42%) partially counteracting the underperformance of the JSE. The headlining market event of the quarter was the unbundling by Naspers Ltd. (NPN) of its internet company, Prosus NV (PRX). Both NPN and PRX had a strong start after the September 11th unbundling, however, they finished the month down -2.46% and -7.95% respectively. The Prescient Equity Fund returned -6.46% over the quarter, behind the benchmark return of -5.11%.
Contributors to Performance: The positions that contributed the most to the absolute performance of the Fund for the month of September were AngloGold American PLC (+7.36%), FirstRand Ltd (+6.18%) and Capitec Bank Holdings Ltd (+17.59%).
Detractors from Performance: The largest detractors were Sasol (-12.12%), Prosus NV (-7.95%) and AngloGold Ashanti Ltd (-17.93%).
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.