Investment Review – July 2019

Market Indicators

  • JSE All Share (ALSI) 56,784.61
  • Rand/Euro R 15.75
  • Rand/Pound R 17.30
  • Rand/US Dollar R 14.16
  • Rand/Aus Dollar R 9.75

How Naspers is trying to close its valuation discount

Since Naspers acquired a 31% stake in Tencent in 2001, the wealth creation for investors has been very significant. However, there has been a permanent discount between what Naspers is trading at, and the value of its Tencent holding, implying a negative value for the remainder of the Naspers business. As a step to help eliminate this discount, Naspers is planning on seperately listing its Internet based businesses, including Tencent into a new entity called Prosus.

This month’s comment touches on the considerations for investors given the pending restructure.

(Click link to download PDF)

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The Allan Gray-Orbis Global Equity Feeder Fund remains fully invested in global equities. The objective of the Fund is to outperform the FTSE World Index at no greater-than average risk of loss in its sector.