Page 169 - Profile's Unit Trusts & Collective Investments - March 2026

Fund manager interviews Chapter 9

Comment on your investment year (January – December 2025) from a fund manager’s point
of view
2025 was a good year for our clients to grow capital. In a year when it was very difficult to keep up
with the JSE (due to the concentrated nature of performance contribution) we generated very good
absolute returns. Our clients benefited from healthy precious metal exposure which was initiated at
times when these sectors were out of favour. Furthermore, our global process served our clients well
with a number of our higher conviction ideas delivering good returns.

In terms of risk management, what methods or strategies are you able to use to protect your
clients’ investments?
Our main objective is to avoid permanent capital loss. We aim to do this by having a rigorous,
disciplined process that only owns stocks that can be acquired at a margin of safety.

Comment on the year ahead and, if possible, estimate the performance of your fund over 2 or
3 years. What are your targets and objectives for the year ahead?
Our process anticipates further strong returns from the stocks on our buy lists over the medium
term. However, it is appropriate to expect overall portfolio performance to be more muted over the
next three years than the average of the past five years as valuations have risen. With all the focus
on AI, good returns from this area over the past few years, and rapid change in technology, we
think a major shift in investment regimes is being overlooked. We expect the market winners of the
future to look very different to the winners of the past. We anticipate multi-year outperformance from
emerging markets and value stocks. This bodes well for our clients.

Are equity markets in general overpriced? Do you anticipate a significant correction?
It is appropriate to differentiate between markets. The US and large cap growth stocks look
expensive while emerging markets look attractively priced and the JSE offers particular value. We
don’t know whether the pockets of overvaluation correct via a crash or a persistent rotation to better
value parts of the market.

Could you identify three shares that fall within your universe that you think will perform well
in the medium term?
Discovery, Glencore and A-B Inbev.
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Sygnia FANG.AI Equity Fund

Sector: Global–Equity–General Unit Trust
Awards
Portfolio managers: Kyle Hulett and Wessel Brand 2026
Benchmark: NYSE® FANG+Index For performance to 31 December 2025
WINNER
Returns to investors 1 year 3 years
Sygnia FANG.AI Equity Fund 5.1% 45.31%
Sector Average 6.84% 16.25%
Inflation (CPI) 3.60% 3.91%
ProfileData performance stats to 31 December 2025: CAGR with dividends reinvested

Describe your investment universe
Our investment universe is centred around the vanguard of the global digital economy. We focus
primarily on large-cap US technology companies that are not simply participants in but architects
of the artificial intelligence (AI) revolution and other frontier technologies. Our mandate targets
companies with high “innovation density” – those leading in semiconductors, cloud computing,
generative AI and autonomous systems. We capture growth from the structural shift to an AI-driven
global economy by focusing on the “enablers” and “adopters” of the Fourth Industrial Revolution.

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