Page 162 - Profile's Unit Trusts & Collective Investments - March 2026

Chapter 9 Fund manager interviews

fund inception. This discipline ensures that investment decisions remain free from subjective bias
and are grounded entirely in data and systematic signals.
Looking ahead, we do not attempt to forecast market direction or predict short-term returns. Our
philosophy is to respond to trends as they emerge rather than anticipate them. If market conditions
weaken, the strategy is designed to remain invested in relative strength while gradually shifting
toward more defensive positioning through our regime framework.
For investors, it is important to view this as a long-term allocation. We believe a minimum
investment horizon of five years is appropriate for any equity strategy, particularly one based on
momentum, where short-term volatility can obscure longer-term performance advantages.
Our objective remains unchanged: to deliver consistent alpha over time by systematically
harvesting momentum risk premia, while managing downside risk through disciplined portfolio
construction, robust liquidity controls, and our regime-based risk overlay.
Are equity markets in general overpriced? Do you anticipate a significant correction?
We do not take an explicit view on whether equity markets are overpriced, nor do we attempt
to forecast the timing or magnitude of a potential correction. History has shown that markets can
remain expensive for extended periods, and strong trends can persist far longer than conventional
valuation metrics might suggest.
Rather than making macro forecasts, we follow a systematic momentum and trend-following
approach. Our process is deliberately reactive, not predictive. We remain invested in sectors and
companies demonstrating sustained price strength, while our regime framework monitors broader
market conditions.
Should underlying trends begin to weaken, our rules-based system gradually reduces exposure
and shifts the portfolio toward a more diversified and defensive positioning. By relying on objective
price signals rather than subjective forecasts, we allow the data to dictate portfolio positioning and
risk management.

Which asset classes do you expect will give the best total rates of return over the next few
years?
As a systematic, rules-based manager, we do not make discretionary forecasts about which asset
classes or sectors will outperform. Our investment process is designed to identify and allocate
capital to the strongest momentum trends within our defined investment universe, with positioning
driven entirely by objective signals rather than subjective views.
At present, the fund’s largest equity holdings include companies such as Lumentum Holdings,
Western Digital, Micron Technology, Hecla Mining, and Bloom Energy. These positions reflect where
the strongest risk-adjusted trends currently exist within the market.
It is important to emphasise that this is a highly active strategy. Portfolio leadership is not static
and evolves continuously as market and sector dynamics change. As trends strengthen or weaken,
the portfolio adjusts accordingly. This ensures that we remain aligned with the market’s leading
performers while systematically reducing exposure to deteriorating trends.

Offshore investments are heavily influenced by the rand. Give your view on the rand over the
next 1, 3 and 5 years.
From our perspective, we do not attempt to forecast the rand over specific time horizons, nor do
we allow currency views to influence our investment decisions.
Our investment process is focused entirely on identifying the strongest risk-adjusted opportunities
within our global equity universe. Portfolio construction is driven by liquidity, momentum, and risk
controls, rather than by expectations around currency movements.
The fund is designed to remain fully invested offshore at all times, irrespective of movements in
the rand. Offshore exposure is therefore implemented based on asset-level opportunities rather
than currency considerations. Where appropriate, and purely for operational or efficiency purposes,
collateral may be held in local money market instruments, but this does not alter the fund’s underlying
offshore exposure.

160 Profile’s Unit Trusts & Collective Investments March 2026