Page 175 - Profile's Unit Trusts & Collective Investments - September 2025

Fund manager interviews Chapter 9

Are equity markets in general overpriced? Do you anticipate a significant correction?
Global equity markets do appear richly valued on a market capitalisation-weighted basis.
Importantly, this is not occurring against a backdrop of depressed earnings or profit expectations,
making it increasingly difficult to achieve attractive returns from global index exposures. Fortunately,
we do not solely invest in the global index, and while the headline pricing levels are optically
demanding, this belies considerable opportunities at the country and regional level. As macro
allocators, we are positioned to take advantage of these.

Which asset classes do you expect will give the best total rates of return over the next
few years?
Developed market government bonds.

Offshore investments are heavily influenced by the rand. Give your view on the rand over the
next 1, 3 and 5 years.
The South African rand is only one side of the currency exposure – which global currency
exposures are held should also be vital for the rand-based investor. Currently, the rand is moderately
attractive by historical standards against the US dollar, having performed well against a benign
inflation backdrop.

Could you identify three shares that fall within your universe that you think will perform well
in the medium term?
As macro investors, we currently see Turkish, Chinese and Indonesian equities as medium
term opportunities. While some of this view is more tactical in terms of the entry points into these
trades, each of these markets has features that allow us to enter into attractive index-level positions
at valuations that are historically favourable.
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Mazi BCI Global Equity Feeder Fund

Sector: Global–Equity–General
Portfolio manager: Andreas van der Horst
Benchmark: ASISA Global Equity General category average

Returns to investors 1 year 3 years
Mazi BCI Global Equity Feeder Fund 7.17% 23.87%
Sector Average 11.34% 17.23%
Inflation (CPI) 3.02% 4.49%
ProfileData performance stats to 30 June 2025: CAGR with dividends reinvested
Describe your investment universe
Our investment universe spans all listed companies worldwide with a market capitalisation above
USD2 billion, around 4 500 stocks, representing roughly 90% of global equity market capitalisation.
This universe is meaningfully broader than our benchmark, the MSCI All Country World Index, which
includes approximately 2 525 stocks.
From this starting point, we apply our quality-focused, growth-oriented investment process to
narrow the field. Using proprietary data analytical software, we filter for businesses that are well-
managed, consistently profitable, and possess long runways for compounding shareholder wealth.
This disciplined approach reduces the universe to around 150 companies that meet our criteria and
threshold values.

Comment on your investment year (July 2024 – June 2025) from a fund manager’s point of view
The period under review can broadly be divided into two parts:
„ Up to December 2024, our performance ranked in the first quartile, comfortably ahead of both
the ASISA Global Equity Peer Group average and the MSCI All Country World Index. This
reflected the strength of our disciplined investment philosophy and repeatable process.

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