Manager Research

We recently completed our review of the Catalyst fund range and have retained our ratings across the funds.

On the business and shareholder side, we continue to believe that the business is investment led and that staff interests are largely aligned with investors. The product range is focused and within their circle of competence. The muted growth prospects of the South African property market make it important for the business to grow its international footprint and establish a wider client base.

The investment team at Catalyst has remained relatively stable for some time, which we feel is a positive. However, some of the senior members of the investment team are starting to step back from certain management responsibilities. Ultimately, the transition from the old guard to the new guard is being well managed by business, which does provide us with comfort.

We continue to rate Catalyst’s research capabilities highly across both local and global property markets. We do believe that the funds will struggle to achieve consistent outperformance on a net of fee basis due to the benchmark cognizant investment process and tight tracking error budgets applied to portfolio construction.

Below, we provide a summary of our fund ratings.