Merchant West Sanlam Collective Investments Dividend Equity Fund on Naspers Limited

Merchant West initiated Naspers after significant share-price weakness driven by a derating in Tencent, its main investment. At the time of purchase, Tencent traded at only 13.5 times forward earnings while Naspers itself traded at an attractive 45% discount to the value of its underlying assets. The fund believes Tencent is unusually cheap relative to its own history despite projected double-digit profit growth for at least the next five years, creating potential upside from both Tencent fundamentals and a rerating of the Naspers discount. P(1) Merchant West SCI Dividend… naspers.com