NAV on 2019/09/16
|NAV on 2019/09/13
|52 week high on 2018/09/26
|52 week low on 2019/08/15
|Total Expense Ratio on 2019/06/30
|Total Expense Ratio (performance fee) on 2019/06/30
RECM Collective Investments (Pty) Ltd.
FTSE/JSE All Share index
With 25 years industry experience, Piet has become very cynical about the industry & what it stands for. He started out as a lecturer at the University of Pretoria, and then joined the Reserve Bank as an economic analyst. He became a portfolio manager at Allan Gray Investment Counsel in 1991 and in 1995 he moved to Investec Asset Management. Piet founded RE·CM in 2003 and is our Executive Chairman. Piet believes that fund managers should be true professionals, and as stewards of their clients' capital, always act in their best interests. RE·CM's adherence to this philosophy truly sets it apart from its peers in the indutry.
RECM Equity comment - Sep 14
Sun International has been a top holding in the Fund for some time. The investment case is based primarily on margins going back to more normal levels through a recovery in the hotel cycle and trimming of excess fat in the business by new management. The business possesses barriers to entry in the form of casino licenses in a highly regulated industry and although Sun City is likely to continue to be a drag on returns on capital, there have been a few positive developments within the group recently. These include Sun International selling a 40% stake in GrandWest and Worcester casinos to Tsogo in a deal worth almost R2,2bn reducing the probability of a competing casino in the area, changes to the border between Mpumalanga and Gauteng allowing Sun International to move its licence from the Morula Sun to Menlyn Park, Pretoria (a very lucrative largely untapped casino market), and the sale of most of its African hotel operations to Minor International (MINT) at a reasonable price, with a resulting improvement in the quality of earnings going forwards. Despite the share rising on the back of this news, the stock still represents good value at these levels.
The RE:CM Equity Fund is an SA Equity Fund and has the flexibility to default to cash when we cannot find value in equities. It aims to generate better returns than the FTSE JSE All Share Index (including income) per year over the long-term with lower than average risk of capital loss and with less volatility than the index. This fund is suited to investors seeking long-term wealth creation through SA equity exposure, and who are comfortable with short-term volatility. The portfolio objective is to seek long-term capital growth with a level of risk acceptable to the more aggressive investor.