Naspers to shake up the JSE once again

Back to Money advice
29 July 2019
Corporate action at JSE-listed technology group Naspers will potentially provide a welcome breath of fresh air to both active and passive managers operating in South Africa. This is one of the key takeaways from our recent OUTvest Investment Advisory Committee.

Naspers has long been regarded as the superstar of the JSE. From its humble media roots in South Africa to its world-beating investments in emerging markets like Russia and China, Naspers has become an outsized giant in South African terms. 

With a market capitalization of R1.5 trillion, Naspers has driven a significant amount of all investment returns on the JSE over the last decade. In the last 6 months, Naspers has risen 20% and successfully unbundled its stake in Multichoice.

Naspers has indicated it will pursue further corporate action by listing its international assets in Europe, with a secondary listing on the JSE.

This will give investors the option of either investing in the overall Naspers group – including SA assets – or a stake in the international business called Prosus.

What does this mean for OUTvest clients?

When holding companies – such as Naspers – group together a number of assets, it often means that the share prices of the collective, will trade at a discount to the value of the individual businesses.

By listing the assets separately, there is more transparency in pricing and this can provide a boost to both the new listing plus the original holding company.

For instance, Multichoice Group listed at the end of February 2019 and has subsequently risen by 27%.

There is an expectation that holders in both Naspers and Prosus will benefit from the separate listing as value is unlocked.

Naspers is a key component in a variety of our portfolios:

  • Coreshares OUTcautious Index Fund (2.5%)
  • Coreshares OUTstable Index Fund (3.6%)
  • Coreshares OUTmoderate Index Fund (5.6%)
  • Coreshares OUTaggressive Index Fund (6.1%)

We have meticulously researched over 115 years of data from a variety of investment markets to help us refine our investment processes.

Our partnerships with the world-class teams at Coreshares and S&P DowJones Indices means that we are able to build tools and portfolios that change the way the investment process works, and aims to improve your outcomes.

If one reviews our portfolio performance for the past 2 years to the end of June 2019, you will find our focus on low cost portfolio design and focus on asset allocation has resulted in our various funds outperforming more than 80% of their peer groups.

Through the sound guidance of our Investment Advisory Committee and our world-class technology, we hope to continue to deliver similar results for OUTvest clients going forward.

Speak to one of our financial advisors and start your investment journey.

 

Marc Ashton
OUTvest is an Authorised FSP.  Past performance is not indicative of future performance
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