Money and Markets

There is a clear favourite among equity unit trust managers in South Africa

Business Insider SA
  • Nine out of South Africa's ten equity funds had Naspers among their biggest holdings at the end of last year, a new report by Kagiso Asset Management shows.
  • In seven of these funds, Naspers was the single biggest holding.
  • Other popular holdings include Anglo American, British American Tobacco, Sasol and Standard Bank.
  • For more stories, go to Business Insider's home page.

Naspers continues to dominate the portfolios of South Africa’s biggest equity unit trusts. SA equity funds are required to invest a minimum of 80% of their investments in companies listed on the JSE.

A report by Kagiso Asset Management shows that Naspers was the biggest holding in seven of the ten biggest equity funds, as at end-December 2019.

Nine out of ten equity funds had Naspers among their biggest holdings, while only one - PSG Equity - didn't have Naspers in its top ten. 

Source: Kagiso Asset Management
Source: Kagiso Asset Management

Seven of the ten South African equity funds also had Prosus among their top ten holdings.

Last year, Naspers listed Prosus -  which now holds the group's 31% stake in China’s biggest online platform Tencent, as well as other international digital businesses – separately. Prosus was created in an effort to remove the discount at which Naspers was trading to its Tencent stake.

Since the Prosus listing in September, the Naspers share price has been flat, while Prosus has lost 10% of its value.

The strong consensus on Naspers and Prosus even between managers with different styles is “amazing”, tweeted Piet Viljoen, of asset manager RECM, 

“Despite my own misgivings, it looks like fund managers approve of the fumbling attempts at reducing the discount embedded in the structure.”

Apart from Naspers, there are a couple of other favourites among the top equity funds, including Anglo American and British American Tobacco (both in six funds), Sasol (five funds) and Standard Bank (four funds).

But otherwise the unit trusts each held quite a divergent group of shares - especially compared to the biggest ten shares on the bourse, which is what the Satrix index fund reflects.

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