Schroders advocates offshore investing after Naspers share swap fallout
Just days after local fund managers called out Naspers for its proposed share swap, global asset manager Schroders has encouraged SA investors to look offshore for returns that carry less concentration risk, whereby one or few stocks comprise a large proportion of a portfolio.
The technology investor has responded to a pushback by 36 asset managers of its plan to narrow the long-standing gap between its market value and the sum of its parts. The asset managers had cited the transaction’s complexity and incentives for the company’s management. Naspers said it had done much work to educate shareholders as a way to address the complexity, while assuring investors that management’s incentives would continue to be aligned with Naspers’s performance. ..