Naspers

Our equity and balanced portfolios’ core holdings include many of the global stocks listed in SA for which the rand strength was a headwind. Despite this, Naspers and Prosus delivered good returns for the quarter (up 18% and 16%, respectively). Their core holding Tencent rose strongly as China finally pulled the trigger on stimulus, announcing a raft of measures in September. Despite the share price move, we view the valuation of Prosus and Naspers as extremely attractive. Both trade at a significant discount to the value of just their Tencent holding. Tencent remains an attractive investment in its own right, delivering strong earnings growth, and is well positioned to benefit should the Chinese stimulus boost consumer spending. Prosus and Naspers trade at an even more material discount to their all-in NAV. Both are buying back shares at a meaningful rate, compounding value for shareholders. They remain a significant holding.

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