Page 183 - Profile's Unit Trusts & Collective Investments - September 2025

Fund manager interviews Chapter 9

The 20% offshore investment within the fund (held in the Denker Global Financial Fund) is also
well positioned to deliver potential returns of 10% to15% over the medium term, measured in US
dollars. A stronger rand would detract from these returns measured in rand terms.
Are equity markets in general overpriced? Do you anticipate a significant correction?
Certainly, the US tech sector and the S&P 500 have price earnings ratios quite far above their
historical averages. In contrast, most markets in the EU, UK and emerging markets are attractively
priced, reflecting the excessive negativity towards those markets – which increases the probability
that these markets will outperform the US market. Despite the financial sector’s strong performance
over the past few years, it remains mispriced (especially in the EU, UK and most emerging markets).
Could you identify three shares that fall within your universe that you think will perform well
in the medium term?
„ South Africa: Investec, Nedgroup, MMI and potentially Absa. Over the longer term: Capitec
and OUTsurance.
„ Globally: US Bancorp, IG Group, Arch Capital and Bank Mandiri in Indonesia.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
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 9.25% 19.56%
Sector Average 7.68% 13.20%
Inflation (CPI) 3.02% 4.49%
ProfileData performance stats to 30 June 2025: CAGR with dividends reinvested

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.
Comment on your investment year (July 2024 – June 2025) 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 year to 30 June 2025 comprised two dramatically different six-month periods for the fund.
The latter half of 2024 saw the fund delivering very weak returns. Limited exposure to the US and
the large technology stocks that dominate that market held the fund back. On top of this, some of
the larger investments in the fund suffered share price declines. These include oil services business
Noble, as well as European satellite operator SES and Brazilian FMCG business M Dias Branco.
The first half of 2025 proved to be a much better period for the fund. Meaningful exposure to
markets other than the US served the fund well. SES – which detracted from fund returns in the latter
part of 2024 – experienced a sharp share price reversal. Global technology investment business
Prosus, and direct-to-consumer wine retailer Naked Wines were also leading contributors to the
fund’s positive returns for the period.
In terms of risk management, what methods or strategies are you able to use to protect your
clients’ investments?
Our primary risk management tool is to allocate capital only to assets trading below fair value, and
to hold cash when we are unable to find sensible opportunities in risky assets. Sizing positions with
reference to the risk embedded in the underlying asset is a further way in which we manage risk.

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