In a recent media statement by the Actuarial Society, they unpack the unbundling of Naspers shares as well as what it means for benchmarks as well as investors.
According to Kyle Hulett, a member of the Investments Committee of the Actuarial Society of South Africa (ASSA) and Head of Asset Allocation at Sygnia, this unbundling can have significant implications for the composition of investor’s portfolios.
“A portfolio’s benchmark determines the nature and composition of an investment portfolio and also how it can be expected to perform over time,” explains Hulett. “Different benchmarks will behave differently depending on their composition. Selecting an inappropriate benchmark can therefore have a significant impact on the volatility experienced and the returns achieved by the portfolio.”
Hulett says it is therefore worthwhile considering the impact of the unbundling of Naspers on the various indices commonly used as benchmarks by institutional investors like retirement funds and individual investors.
Click here to download the media statement that explains how it will impact investors with regards to retirement funds, index tracking portfolios and offshore exposure.