No Naspers in Investec Asset Management funds: here’s why
There are ample offshore opportunities to offset the dearth of local tech and healthcare stocks
Half of the 21% return delivered by the FTSE/JSE all-share index last year came from its largest share, Naspers. At Investec Asset Management, we don’t own Naspers in the Investec Opportunity or Cautious Managed funds. Our zero exposure has been a key question for a number of our clients, given that the multinational internet and media group has been a significant driver of equity returns. Naspers’s dominance in our market reminds us of some of the market structures seen at the turn of the century. Those investors who were involved in the financial markets in 1999–2000 will remember the contribution that Dimension Data made to the South African stock-market performance. Investors may also recall the substantial contribution – more than 80% – that Anglo American and BHP Billiton made to the South African market at the top of the 2006–08 commodity cycle. The local market is narrow and often driven by one or two holdings. The healthcare, technology and consumer staples sectors are a fe...
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