The fund has R2bn under management and, unlike its Investec counterpart, does not have a big block of institutional money. Fund manager Anthony Sedgwick from Abax says at times more than 30% of the fund is accounted for by shares which have moved into the Top 40. Under the rules of the sector, the fund may hold them. But he says the Top 40 holding has fallen to less than 20% of the fund, though some are high-conviction holdings which might never be sold. Naspers is 4.8% of the fund, and fits the mandate to look for entrepreneurial businesses. Another large cap is British American Tobacco at 3.4% of the fund. This was acquired, when it was already huge, on a technicality. At the time it did not qualify for the Top 40 as it was an inward listing. But Sedgwick says the fund has held high-conviction positions in small caps such as City Lodge, Cashbuild, Holdsport, Mpact, Raubex and Peregrine — though he recently sold Peregrine. He believes the share price should have come under more pre...
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