Manager Research

Following our latest review of the Prescient Investment Management (PIM) fund range, we have downgraded the Prescient Income Provider Fund to Tier 2, while retaining the Tier 2 ratings on the Prescient Balanced and Flexible Bond Funds. A Tier 2 rating is positive and indicates minor concerns that we intend to monitor. We continue to hold the Income Provider Fund across relevant strategies as one of our preferred multi-asset income fund options.

PIM benefits from a stable ownership structure, which is supported by rising staff ownership. Leadership transitions over recent years have been relatively well managed, and we have developed confidence in PIM’s Chief Investment Officer (CIO) Bastian Teichgreeber and Chief Executive Officer (CEO) Cheree Dyers.

Prescient Income Provider Fund 

The Prescient Income Provider Fund has been managed for nearly two decades according to a consistent investment philosophy by a strong team, historically led by Guy Toms.

The fund has delivered strong returns over relevant time horizons, relative to its benchmark and inflation target. Our long-standing Tier 1 rating for the fund was underpinned by Prescient’s disciplined, risk-aware investment philosophy and by Guy’s approach to income investing in South Africa.

Over the past few years, Guy has gradually stepped back from his role, and the management of the fund has slowly been handed over to Henk Kotze. While our assessment of Henk is positive, supported by the strong team around him, our conviction levels are still developing and not yet at the level we had with Guy. In addition to the leadership change, both the size of the fund and the breadth of the investable income universe have increased, adding complexity to the management of the mandate.

Investment oversight in multi-asset income funds is important, given how risk-aware these investors are. Bastian’s CIO oversight role and the credit committee’s input require further evidence of development.

We maintain a positive rating on the fund and continue to include it in mandates where income-oriented exposure is required. However, important leadership changes and the current income investment landscape support a Tier 2 rating in our view.

Prescient Balanced Fund

We have retained our Tier 2 rating on the Prescient Balanced Fund. The fund continues to benefit from a strong and well-resourced team, with Rupert Hare and Bastian playing key roles in maintaining a disciplined and systematic investment approach. Decision-making is well-supported by broader collaboration across Prescient and a clear commitment to ongoing refinement of the process.

Team quality remains strong, but there are aspects of the investment approach that we want to monitor. We view the fund positively and remain confident in the team’s ability to deliver on its objectives, even though we retain minor concerns. 

Prescient Flexible Bond Fund

We have retained our Tier 2 rating on the Prescient Flexible Bond Fund. The fund follows a differentiated approach within the bond universe, with a strong focus on managing risk and generating consistent returns, rather than closely tracking a benchmark. This flexibility has allowed the fund to navigate challenging market environments effectively.

We have confidence in Reza Ismail as portfolio manager. He has played an important role in strengthening the investment framework and has demonstrated skill during periods of market stress. Our main concern is team depth. While Reza is well-supported within Prescient, the team needs broader fixed-income experience to strengthen decision-making.

The table below summarises our rating views.