Page 177 - Profile's Unit Trusts & Collective Investments - September 2025
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Fund manager interviews Chapter 9
Could you identify three shares that fall within your universe that you think will perform well
in the medium term?
Stride Inc. (LRN US): Online K12 schooling & vocation training in the USA
Nu Holdings (NU US): Digital banking disruptor in Latin America
Interactive Brokers (IBKR US): Online stockbroking worldwide
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Methodical BCI Dynamic Income Fund
Sector: South African–Multi Asset–Income
Portfolio manager: J P du Plessis
Benchmark: JSE All Bond Index (ALBI)
Returns to investors 1 year 3 years
Methodical BCI Dynamic Income Fund 14.16% 11.73%
Sector Average 9.28% 9.70%
Inflation (CPI) 3.02% 4.49%
ProfileData performance stats to 30 June 2025: CAGR with dividends reinvested
Describe your investment universe
Our investment universe encompasses a broad spectrum of both local South African fixed
income assets and global developed market fixed income assets. Locally, this includes bonds,
inflation-linked bonds, and money market instruments. On the global front, we incorporate a range of
developed market fixed income assets to ensure a diversified portfolio. Despite this broad spectrum,
our primary focus remains on South African fixed income investments.
This approach allows us to leverage our deep understanding and expertise in the South African
market, while also capitalising on opportunities in global markets. Our strategy is designed to
balance risk and reward, ensuring that our investments are well-positioned to deliver consistent
returns. By maintaining this diversified yet focused approach, we aim to provide our investors with
the best possible outcomes in both the short and long term.
Comment on your investment year (July 2024 – June 2025) from a fund manager’s point of view
The robust performance of our fund over the past year can be attributed to both the yield and
the capital appreciation resulting from a rally in the South African bond curve. Specifically, while
the long end of the curve continued to lag, both the short end and the belly produced impressive
returns. This favourable performance was driven by our strategic allocation and timely adjustments
in response to evolving market conditions. Our diligent and proactive approach allowed us to
capitalize on opportunities and mitigate risks, ensuring that we maximized returns for our investors.
We are particularly proud of our ability to navigate the complexities of the bond market and deliver
consistent, strong results.
In terms of risk management, what methods or strategies are you able to use to protect your
clients’ investments?
Given the fund’s longer term investment horizon, it possesses the capability to endure greater
volatility compared to those with a shorter duration focus. This extended perspective allows us
to navigate market fluctuations with a steady hand. Nonetheless, we diligently manage duration
based on a meticulous assessment of valuations and tactical asset allocation considerations. Our
approach is multifaceted, involving continuous monitoring and strategic adjustments to mitigate
risks effectively.
The primary objective of the fund is to achieve absolute returns while substantially exceeding
inflation over time. We strive to provide our investors with consistent and competitive performance
that not only preserves their capital but also enhances its value in real terms. Our commitment to
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