We are delighted to celebrate the one-year anniversary of the Fairtree Blended Equity Prescient Fund. This milestone marks the success of our vision to create an integrated solution that delivers consistent, superior returns by integrating local and global investment expertise.

A unique opportunity in the market

South Africa’s investment landscape often forces a choice between local or global excellence. Many managers perform well in one area but struggle in the other, as demonstrated in the graph below. Recognising this, we launched the Fairtree Blended Equity Prescient Fund (“the Fund”) to provide a seamless solution that delivers outstanding results in both markets.

The Fund is built on the foundation of Fairtree’s strong track record of:

• The Fairtree Equity Prescient Fund, a leader in local markets for over a decade, delivering 16.3% per annum over the past five years.
   
• The Fairtree Global Equity Prescient Feeder Fund*, which achieved exceptional global returns of 16.6% per annum over the past five years. This has led to the fund winning the Raging Bull Global Equity award in 2023 and 2024 for best risk-adjusted performance over five years**.

By combining these award-winning capabilities, the Fund offers a holistic investment strategy, with a benchmark of 65% local equities (Capped SWIX) and 35% global equities (MSCI ACWI), which is effective from 1 January 2025***.

Source: Morningstar as of November 2024

What sets the Fund apart

This innovative approach allows us to navigate opportunities with unparalleled flexibility. For instance, when identifying opportunities in the energy sector, we are no longer confined to only local options like Sasol. Instead, we can leverage global leaders such as TotalEnergies and Petrobras.

The Fund represents an integrated solution that eliminates the inefficiencies of splitting local and global asset management. Investing in general, but especially on the JSE, requires a global perspective. With a single, cohesive strategy, we deliver seamless execution and adaptability across markets.

Strong performance, proven results

In its first year, the Fund has exceeded expectations, outperforming both the standalone Fairtree Equity Prescient Fund and the Fairtree Global Equity Prescient Feeder Fund. This strong performance demonstrates the value of an integrated investment approach, ensuring consistent returns while minimising risk.

 To summarise, the Fund offers:

• Enhanced access to a wider universe of opportunities gives exposure to higher growth, quality and liquid companies.
   
• Elimination of duplication/missed themes when using an integrated strategy.
   
• Efficient and agile asset allocation due to the flat decision-making structure.
   
• Leveraging the best ideas of the successful Local and Global Equity teams.
   
• Less foreign exchange volatility than accessing a 100% global equity fund.
   

As we celebrate this first year, we are energised by the possibilities ahead and remain focused on driving innovation and delivering long-term value.

Thank you for being part of this journey. Together, we look forward to many more milestones. If you would like more information about the Fairtree Blended Equity Prescient Fund or have any other queries, please contact us.

Appendix:

Table 1: Fairtree Equity Prescient Fund annualised performance (%):

Fund inception date: November 2011. | Source: Fairtree as at 30 November 2024.

Table 2: Fairtree Global Equity Prescient Feeder Fund annualised performance (%):

Fund inception date: January 2017 | Source: Fairtree as at 30 November 2024. | Portfolio manager change in December 2019.

Disclaimer:

Fairtree Asset Management (Pty) Ltd is an authorised financial services provider (FSP 612). 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. 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. There is no guarantee in respect of capital or returns in a portfolio . 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. The highest and lowest 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 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.fairtree.com.

* 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.

**The full details and basis of the awards are available from the manager.

***The current benchmark for the Fund is the SA-Equity-General Category Average. Approval for the benchmark change to 65% local equities (Capped SWIX) and 35% global equities (MSCI ACWI) was granted by the FSCA on 16 September 2024. Letters informing investors of this change have been sent out. The new benchmark will officially take effect on 1 January 2025.