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BusinessDay www.businessday.co.za Thursday 13 February 2025
INSIGHTS A robust platform for long-term success The Remo Thematic Growth Fund won the offshore performance, global equity general category. The fund was launched in March 2021 by Rhoan Potgieter, chief investment officer at Remo Investment Management. “The origins of the Remo Thematic Growth Fund trace back to 2017 when I launched my first fund product, the Prescient High Street Wealth Warriors Fund, which I created and managed until November 2020 with a total net return of 118% (22% ann) in dollars against a benchmark MSCI World Return of 60.5% (12.8% ann). At that time, many of my peers were emigrating as the longterm prospects for SA under a captured state were looking increasingly bleak. Eager to remain in the country, and searching for alternative solutions, I set out to create a vehicle for those living in SA to build their wealth in US dollars and gain exposure to global investment trends.” Remo’s Thematic Growth Fund continued the philosophy and investment process that Potgieter had developed managing the Prescient High Street Wealth Warriors Fund. “When I first entered the investment industry as an analyst in 2014, the local investment community was still scarred from the bursting of the dot.com bubble,” he says. “In addition to negative attitudes towards technology stocks, investors were also wary of anything novel. Having grown up on either side of the internet, I was naturally attracted to the sectors of the market where innovation was driving superior growth and profitability. It was against this status quo that I set out to create a framework with which to assess and value these growth opportunities through fundamental analysis.” Over the past decade, he adds, this framework has
Rhoan Potgieter. evolved into a structured investment process designed to cut through market noise and identify both compelling opportunities and key risks. “The Remo Thematic Growth Fund launched at pretty much the peak of the Covid bubble in March 2021 which made for a difficult start as the US Fed’s war with inflation really whittled valuations to the bone. After playing a fair amount of defence over this period — by the time rates had peaked — there was suddenly a lot of value on offer,” he says. An established investment process, he adds, allowed the fund to acquire and hold a relatively concentrated portfolio
of quality companies which have joined and, in some cases, driven the market’s recovery over the past two years. “In an increasingly dynamic and volatile environment, having a sound investment process has been critical to performance,” says Potgieter. Remo, a technology-driven investment firm focused on building a robust platform for long-term success, was founded with the aim of creating a range of high-quality, competitively priced investment products and wealth solutions. While the Remo Thematic Growth Fund remains its flagship product, the firm has expanded its offering to include bespoke investment and wealth management solutions tailored to investors seeking global exposure. It also recently launched the Remo BCI Thematic Growth Feeder Fund (ZAR), providing South Africans who don’t have access to dollars with a way to gain exposure to the fund in rands. Other winners in the Offshore 3 Year performance category include the Contrarius Global Balanced Fund (global asset allocation — flexible); Standard Global Stable Fund (global, asset allocation prudential); and Allan Gray Africa Bond Fund (global, fixed interest, bond). In the Offshore Risk Adjusted — 5 Year performance category, the winners are Orbis Optimal SA Fund (global asset allocation flexible); Standard Global Stable Fund (global asset allocation prudential); GQG Partners Global Equity Fund (global equity general); and the Allan Gray Africa Bond Fund (global fixed interest, bond).
2021
In the March of this year was when was the Remo Thematic Growth Fund launched
2025 PROFILE UNIT TRUST AWARDS
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Unit trust winners ‘truly deserving of recognition’ ards •acAw knowledge
investment decision-makers who deliver the best returns, writes Lynette Dicey
I
nvestment managers navigated a complex and challenging landscape both locally and globally in the past year. Globally, the fallout from the ongoing Russia-Ukraine war continued to disrupt supply chains, fuelling economic slowdowns, market volatility and inflationary pressures. Locally, sluggish economic growth meant that investors and consumers alike faced headwinds, from high interest
Ernie Alexander. rates to rising living costs. Ernie Alexander, executive chairman of the Profile Group, says that despite these challenges, unit trusts have remained a cornerstone of investment portfolios, providing both novice and seasoned investors with opportunities for growth and financial security. Profile supplies financial data and investor information with a
range of products aimed at all levels of the investment industry. For the past 27 years, Profile and its subsidiary, PlexCrown Fund Ratings, have been at the forefront of delivering rigorous performance assessments to identify and celebrate topperforming unit trusts. This year, the Profile Unit Trust Awards 2025 are presented in partnership with Business Day. “Defining the parameters for these awards is no simple task, particularly in an industry that continues to evolve at pace,” says Alexander. “Our primary objective has always been to ensure fairness and transparency while upholding the fundamental principle of rewarding investment decisionmakers who deliver the best returns for retail investors.” The awards are categorised into two key performance areas: straight performance awards, based on three-year returns,
and risk-adjusted performance awards, based on five-year returns. They cover both domestic and offshore funds across selected Asisa and offshore categories. In addition, outstanding fund houses are recognised through the Management Company of the Year awards. “To maintain a competitive and fair process, we reviewed Asisa categories, ensuring awards were allocated only where at least 20 qualifying funds existed,” says Alexander. “Smaller categories were
DEFINING THE PARAMETERS FOR THESE AWARDS IS NO SIMPLE TASK, PARTICULARLY IN AN INDUSTRY THAT CONTINUES TO EVOLVE AT PACE
grouped into broader asset classes for ‘Best of the Rest’ awards. Feeder funds — where both offshore and domestic versions met historical requirements — were considered only in the domestic (rand-denominated) categories to avoid duplicating recognition for the same investment success.” Eligibility criteria played a crucial role in the final selection process. “Only actively managed funds with full historical data were considered, and funds needed to have been available to retail investors for a minimum period. Money market funds were excluded due to their structural limitations compared to other fund types, and offshore funds,” says Alexander. Congratulating the winners, he says their outstanding achievements and commitment to excellence in the investment industry are truly deserving of recognition.
Prioritising relative value extraction is key Taking a three-year performance into consideration, the Allan Gray-Orbis Global Balanced Feeder Fund was ranked the top South African domiciled global multi-asset equity fund while Nedgroup Investments Financials Fund was ranked the top South African equity specialist at the 2025 Profile Unit Trust Awards. In the offshore category, Artisan US Value Equity Fund was the top ranked fund for its performance over the past three years while Orbis Investment Management Limited was the top ranked offshore management company. M&G’s Bond Fund was the top ranked South African, interest bearing, variable term fund in the three-year performance category. Established in 2000, it is a fixed
rate bond fund that has outperformed its benchmark, the All Bond Index, convincingly over the past three years. Portfolio manager Rene Prinsloo says the fund distinguishes itself by prioritising relative value extraction from the South African government bond curve. “This strategy sets us apart from many peers who predominantly focus on corporate debt or macroeconomic-driven duration bets. Our neutral duration stance shielded us from the underperformance experienced by those with underweight duration positions. Our fund management process relies on a disciplined, valuation-driven approach rather than binary, difficult to predict events with a relative
Rene Prinsloo. value strategy proving effective.” In the past year, the fund maintained a significant allocation to the 15-year segment of the curve. “This segment performed strongly, particularly when compared to longer-dated ultra bonds on a duration-adjusted basis. Employing a tactical investment
approach, we actively rotated between different instruments, capitalising on market volatility and shifts in relative attractiveness,” he says. Although South African bond yields remain attractive compared to both historical levels and those of other countries, they have decreased by about 100 basis points since the start of 2024. As a result, replicating last year’s 17% return on local bond yields will be challenging, says Prinsloo. “We anticipate increased market focus on local GDP growth in the coming year. Given that some growth improvement is likely already priced into current bond valuations, the market will be closely monitoring tangible progress in terms of improved economic growth.”
Other winners in the threeyear performance category include Sygnia FANG.AI Equity Fund (global equity, general category); the Global Marathon IP Fund (global, multi-asset, flexible category); the Foord Equity Fund (South African equity, SA general); Granate BCI Flexible Fund (South Africa multi asset, flexible); Granate BCI Balanced Fund (South African, multi asset, high equity); Portfoliometrix BCI Dynamic Income Fund (South African, multi asset, income); Camissa Stable Fund (South African, multi asset, low equity); Nedgroup Investments Opportunity Fund (South African, multi asset, medium equity); Blue Quadrant Worldwide Flexible Prescient Fund (worldwide, multi asset, flexible).
The M&G Bond Fund and the M&G Property Fund win 2025 Profile Unit Trust Awards*
Connect with us to explore extraordinary investment opportunities. Visit mandg.co.za *Best SA- Interest Bearing- Variable Term Fund for straight performance over the three-year period to 31 December 2024. Best SA Real Estate General Fund for straight performance over the three-year period to 31 December 2024. MandG Investments Unit Trusts South Africa (RF) Ltd is an approved CISCA management company (#29). One can obtain all relevant disclosures on the MandG website. Collective Investment Schemes (unit trusts) are generally medium to long-term investments. The value of participatory interest (units) may go down as well as up. Past performance is not necessarily a guide to the future and the manager provides no capital or return guarantees. Performance calculated net of fees. A Collective Investment Schemes (CIS) summary with all fees and maximum initial and ongoing adviser fees and performance fees is available on our website link here. This information is not intended to constitute the basis for any specific investment decision. Investors are advised to familiarise themselves with the unique risks pertaining to their investment choices and should seek the advice of a properly qualified financial consultant or adviser before investing.