Page 174 - Profile's Unit Trusts & Collective Investments - March 2026

Chapter 9 Fund manager interviews

Truffle SCI Income Plus Fund
Sector: South African–Interest Bearing–Short Term Unit Trust
Awards
Portfolio managers: Hannes van der Westhuyzen and Raihan Allie 2026
Benchmark: STeFI Composite Index For performance to 31 December 2025
WINNER
Returns to investors 1 year 3 years
Truffle SCI Income Plus Fund 10.76% 11.03%
Sector Average 7.59% 9.36%
Inflation (CPI) 3.60% 3.91%
ProfileData performance stats to 31 December 2025: CAGR with dividends reinvested

Describe your investment universe
Starting with the entire fixed-income market, Truffle employs a disciplined, multi-stage approach
to identify the most suitable investments. The process begins by applying mandate and prudential
limits - essentially the guardrails that ensure investments align with regulatory requirements and
risk parameters. Liquidity constraints are then carefully evaluated to ensure the portfolio can meet
redemption needs without difficulty. Our research team combines significant experience and skill,
in conducting deep analysis to identify the most compelling opportunities. Environmental, social,
and governance (ESG) factors are also integrated into the selection process, reflecting investment
principles that consider sustainability alongside financial returns. This systematic approach
ultimately results in a carefully curated “investment universe” that includes sovereign bonds,
corporate bonds, structured products, and other debt instruments - each selected not just for their
potential returns, but for how well they fit within a comprehensive risk-managed portfolio designed
to meet investors’ income and capital preservation objectives.
Comment on your investment year (January – December 2025) from a fund manager’s point
of view
2025 proved to be yet another eventful and unpredictable year. From shifting global trade policies
to domestic political drama, the year tested our conviction at every turn. We are pleased to report
that our disciplined, quality-focused approach delivered consistently strong results throughout this
volatile period.
The year began with cautious optimism. Markets expected the new US administration to prioritise
tax cuts and business-friendly reform, but instead President Trump moved aggressively on tariffs
from the outset. His April “Liberation Day” announcement introduced sweeping new trade barriers,
sending shockwaves through global markets and rattling investor confidence for much of the first
half of the year. The US Federal Reserve held rates steady for most of the year before cutting in
September – its first move of 2025 – as labour market data softened and consumer confidence
weakened. Two further cuts followed in Q4.
Closer to home, South Africa navigated its own share of challenges. The Government of National
Unity (GNU) faced a near-collapse during the Q1 budget episode, creating real political uncertainty.
Things later stabilised. The South African Reserve Bank cut the repo rate four times over the year,
but maintained a cautious tone throughout, pausing at points to assess global risks.
By the final quarter, the macro-economic picture had brightened considerably. South Africa’s
removal from the FATF grey list, an S&P credit ratings upgrade, and the government’s formal
adoption of a new 3% inflation target at the November MTBPS marked a meaningful shift in
sentiment. The rand strengthened roughly 4% against the dollar in Q4 alone, supported by a weaker
greenback and surging precious metal prices. Inflation remained well-contained for the full year, with
food prices decelerating, fuel costs subdued, and durable goods entering deflation for the first time
in over twelve years.
Our approach throughout 2025 was guided by consistent principles: protect capital and seek
returns from quality. We maintained a deliberately low duration stance, choosing not to take on
interest rate risk in what was a highly uncertain rate environment. While this meant we did not capture

172 Profile’s Unit Trusts & Collective Investments March 2026