Page 174 - Profiles's Unit Trusts & Collective Investments - September 2024

CHAPTER 9

In the short term, we believe much of the good news has been priced into stocks, with yields
compressing sharply. However, lower interest rates, coupled with firmer GDP growth and an
absence of load-shedding and other constraints, marks a significant improvement from the
operating conditions that the sector has endured for the past 6 years. Furthermore, the rally in
share prices provides companies with the opportunity to raise capital far more effectively,
underpinning acquisitive growth for the first time in years. On that basis, we think the sector has
further to run, but appreciate that a period of consolidation is necessary after recent gains.
Could you identify three shares that fall within your universe that you think will perform well
in the medium term?
Three REITS that we like include:
Fairvest: Local fund with no offshore exposure and focussed exclusively on retail assets that

will benefit from both lower interest rates and stronger GDP growth.
Spear: This is a small fund with assets only in the Western Cape. Given the semigration
trend and better municipal management, we expect that province to outperform. Spear is a
small, nimble company that is well-positioned to benefit from this trend.
Equites: Their restructuring is largely complete with a new base set from which to grow.
Excellent portfolio of logistics properties with long leases and certainty of income makes
Equities a low risk option.

Rozendal Global Prescient Feeder Fund

Sector: Global–Multi Asset–Flexible
Portfolio managers: Paul Whitburn and Wilhelm Hertzog
Benchmark: FTSE Global All Cap index converted to ZAR
Returns to investors 1 year 3 years
Rozendal Global Prescient Feeder Fund 10.12% 16.28%
Sector Average 7.88% 9.06%
Inflation (CPI) 5.10% 5.96%
ProfileData performance stats to 30 June 2024: CAGR with dividends reinvested

Please describe your investment universe.
The fund is a flexible global equity fund. The focus will typically be on global equities but the
flexible mandate allows us to include a range of assets in order to achieve our objective. These can
include fixed interest securities, money market instruments, cash deposits, derivatives, exchange
traded funds, collective investment schemes and convertible bonds.
Please comment on your investment year (July 2023 – Jun 2024) from a fund manager’s point
of view.
We give a comprehensive overview of the fund’s returns in our bi-annual investor letters that
can be found on our website: www.rozendal.com .
The Rozendal Global Fund kept pace with its benchmark during 2023, despite having a vastly
different composition. During the first half of 2024 the fund delivered modest positive absolute
returns, but weak relative returns. The key contributors to returns have been litigation funding
business Burford Capital, uranium miner Cameco, US technology business Meta platforms,
leading UK investment funds platform Hargreaves Lansdown and some of the stocks held in
markets like Turkey and Kazakhstan.
Each of these holdings benefitted from a unique set of circumstances or events that gave rise to
strong returns. This is in keeping with our bottom-up investment approach: rather than taking a
broad top-down view of events on a country or sector level, we focus on the economics of
individual assets.

172 Profile’s Unit Trusts & Collective Investments — Understanding Unit Trusts