As we mark the fifth anniversary since the team, process and philosophy of the Fairtree Global Equity Prescient Feeder Fund changed, we reflect on the milestones achieved over the past half-decade. The Fund has delivered strong risk-adjusted returns across different market climates, driven by our disciplined, style-agnostic approach and an unwavering commitment to fundamental research.

Notable Achievements 

• Raging Bull Awards (2023 and 2024): Awarded Best (SA-domiciled) global equity general fund risk-adjusted performance over five years.
• INN8 Invest Diamond Awards (2024): Awarded Best Global Equity Manager.
• Additional recognition from Citywire.

Leadership and team

The Fund has been spearheaded by lead portfolio manager Cornelius Zeeman and co-portfolio manager Jacques Haasbroek since December 2019. They are supported by an experienced team of 11 analysts. Together, they integrate quantitative insights with fundamental research, seeking to uncover the best opportunities across global developed markets consistently. 

Investment Philosophy

The cornerstone of our investment process is identifying companies with growing free cash flows at attractive valuations. Our philosophy is built on a style-agnostic approach, enabling us to perform consistently in the top quartile of global equity funds, regardless of market conditions. 

We leverage a multi-factor model that enhances scalability, identifies opportunities across market cycles, and mitigates human bias. Our highly experienced team of analysts conducts in-depth fundamental analysis to complement the quantitative screening process. Our active trading strategy ensures that the portfolio responds quickly to evolving opportunities.

This combination of style-agnostic flexibility and highly active management has consistently enabled the Fund to outperform its benchmark across various market environments, demonstrating its resilience and capacity to create long-term value for our investors.

Growth in Assets Under Management (AUM)

Investor confidence in our Fund and team has fuelled notable growth in AUM since its inception. This milestone underscores the trust our clients place in us to navigate both smooth and turbulent market conditions. 

The Fund, domiciled in South Africa, was launched in January 2017. The Irish-domiciled Fairtree Global Equity Fund followed, launching in September 2021.

Source: Bloomberg as at 10 January 2025

Outlook

As we celebrate five years, we look forward to the opportunities and challenges that lie ahead, remaining steadfast in our mission to perform well in any environment. 

2023 and 2024 were trying times for active managers, as only 29% of shares outperformed the S&P 500. The gap between the Fund holdings’ weighted return on equity and price/earnings ratio has not been this wide since 2021, illustrating that the Fund has managed to find higher quality opportunities at cheaper valuations than the MSCI ACWI. 

Upcoming video series and webinars

We are excited to announce the upcoming launch of our Market Insights video series, where we’ll explore the global investment landscape and key macroeconomic themes. This will be followed by our live Equity Explorer webinars, where our analysts will provide in-depth insights into some of the most critical topics in the equity markets.

Disclaimer:

Fairtree Management (Pty) Ltd is an authorised financial services provider (FSP 25917). Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CISs are traded at the ruling price and can engage in scrip lending and borrowing. A schedule of fees, charges and maximum commissions is available on request from the Manager. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate. There is no guarantee in respect of capital or returns in a portfolio. Performance has been calculated using net NAV to NAV numbers with income reinvested. The performance for each period shown reflects the return for investors who have been fully invested for that period. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestments and dividend withholding tax. Full performance calculations are available from the manager on request. A Feeder Fund is a portfolio that invests in a single portfolio of a collective investment scheme which levies its own charges, and which could result in a higher fee structure for the feeder fund. Annualised performance shows longer-term performance rescaled to a 1-year period. Annualised performance is the average return per year over the period. Actual annual figures are available to the investor on request. Highest and lowest is returns for any 1 year over the period since inception have been shown. NAV is the net asset value that represents the assets of a Fund less its liabilities. Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information, such as fund prices, fees, brochures, minimum disclosure documents and application forms, please go to www.prescient.co.za. The Fairtree Global Equity Fund is registered and approved under section 65 of CISCA. The full details of awards and the basis of the awards are available from the manager.