| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.6% | 1.8% | 7.6% |
| 2025 |
|---|
| 7.6% |
The Merchant West SCI Money Market Fund delivered 1.77% for Q4 2025, outperforming its STeFI benchmark of 1.70%, with annual returns of 7.60% versus 7.26% for the benchmark. The fund maintains a conservative approach with 64.6% in RSA government treasury bills and exposure to major South African financial institutions including Standard Bank, ABSA, and Shoprite. The investment environment benefited from coordinated rate cuts, with the US Fed reducing rates to 3.50-3.75% and the SARB cutting to 6.75% with further cuts expected. South African inflation remains subdued at 3.5% and is expected to reach 3.0% by February 2026. The country's removal from the FATF greylist and stronger rand contributed to positive sentiment, with the bond market delivering exceptional returns of 24.2% for the year. Portfolio manager Daniel King emphasizes liquidity and credit quality as core principles, positioning the fund defensively to outperform risk assets during potential global growth slowdowns while maintaining immediate liquidity for conservative investors.
The fund maintains a conservative money market strategy emphasizing liquidity and credit quality, positioned defensively for potential global growth slowdown while benefiting from South African rate cuts and improving economic conditions.
The manager emphasizes continued focus on liquidity and credit quality as core to the fixed income philosophy, with the fund positioned to outperform risk assets in a global growth slowdown scenario.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 20 2026 | 2025 Q4 | ABG.JO, INL.JO, NED.JO, SBK.JO, SHP.JO | inflation, liquidity, Money Market, rates, South Africa | - | The US Fed cut rates by 25 basis points in both October and December, bringing the target range to 3.50-3.75%. The SARB cut rates by… |
| Nov 27 2025 | 2025 Q3 | - | Bonds, duration, income, inflation, Yields | - | The fund benefited from overweight positioning in high-yielding South African government bonds amid easing inflation, strong foreign inflows, and declining long-term yields. With real yields… |
| Jun 30 2025 | 2025 Q2 | TTE | Credit quality, diversification, income, rates, Yield | TTE FP | The letter focuses on income-oriented strategies amid volatile macro conditions and shifting interest-rate expectations. Management emphasizes yield generation while managing downside risk through diversification and… |
| Mar 31 2025 | 2025 Q1 | MC FP | - | - | - |
| Sep 30 2024 | 2024 Q3 | - | - | - | - |
| Jun 30 2024 | 2024 Q2 | - | - | - | - |
| Mar 31 2024 | 2024 Q1 | - | - | - | - |
| Sep 30 2023 | 2023 Q3 | - | - | - | - |
| Jun 30 2023 | 2023 Q2 | GOOG, MSFT, NVDA, TFG SJ | - | - | - |
| Mar 31 2023 | 2023 Q1 | APN SJ | - | - | - |
| Sep 30 2022 | 2022 Q3 | HDC SJ | - | - | - |
| Jun 30 2022 | 2022 Q2 | SSS SJ | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
InflationInflation has continued to be a persistent feature in Japan and has prompted changes in both corporate and consumer behavior. Importantly, inflation has fed through to corporate earnings and equity performance. Companies that have successfully passed on higher costs to consumers have benefited from improved operating margins. |
Inflation Corporate Earnings Operating Margins Consumer Behavior Cost Pass-through |
RatesFederal Reserve resumed rate-cutting cycle with first cut since December 2024, signaling resumption of easing. Expected three cuts of 25bps between now and first quarter 2026 as Fed responds to signs of weakness in US labor market. |
Fed Monetary Policy Labor Market Easing Liquidity | |
South AfricaThe fiscal, economic, and inflation outlook has improved meaningfully. History and fundamentals suggest that certain areas within the mid- and small-cap segments of the JSE are positioned to respond and catch up in a powerful way. Previous cycles of relative underperformance and outperformance have lasted approximately eight to thirteen years. |
JSE Emerging Markets Equities Undervalued Cycle | |
| 2025 Q3 |
Income |
|
| 2025 Q2 |
Income |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | Fund Letters | Daniel King | TTE FP | TotalEnergies SE | Energy | Integrated Oil & Gas | Bull | Euronext Stock Exchange | cashflow, energy, LNG, renewables, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| ABG.JO | ABSA represents 9.9% of the fund's exposure |
| INL.JO | Investec represents 4.8% of the fund's exposure |
| NED.JO | Nedbank represents 3.5% of the fund's exposure |
| SBK.JO | Standard Bank represents 10.5% of the fund's exposure |
| SHP.JO | While Pick 'n Pay (-19%), Shoprite (-9%) and Woolworths (-9%) all lost ground |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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