The Citadel SA 20/20 Equity H4 Fund ('the fund') fell 2% in Q3-2018, as its benchmark declined 1.1%. At sector level, the fund benefitted from its underweight exposures to healthcare and communication services; along with overweight positions in materials and financials. Detractors were the overweight positions in real estate and consumer discretionary. At stock level, the fund benefitted from being overweight NEPI Rockcastle, Sanlam, Nedbank, Sasol and Richemont; as well as being underweight MTN. Detractors included the positions in Aspen, Shoprite, Standard Bank, Remgro, Woolworths and BHP Billiton.

Fund activity for the third quarter include the sale of the Quilter shares, which had been obtained as a result of the holding in Old Mutual. The managers used the proceeds to increase the position in British American Tobacco.

The Citadel SA 20/20 Equity H4 Fund ('the fund') delivered 5.4% in Q2-2018, outperforming the 4% posted by its benchmark. At sector level, the fund benefitted from an overweight exposure to materials, as well as underweight positions in consumer staples, telecommunications services, industrials and healthcare. Detractors included the overweight positions in financials and real estate; along with the consumer discretionary underweight. At stock level, the fund benefitted from its overweight holdings in Naspers, RMB Holdings, NEPI Rockcastle, Investec and BHP Billiton. Detractors included the overweight positions in Shoprite, Woolworths, Anglo, Quilter; and the underweight position in Richemont.

Portfolio activity in the quarter was driven by the Old Mutual managed separation that has been in progress since 2015. This resulted in the listing of Old Mutual Limited on the JSE; and a secondary listing for Quilter (formerly Old Mutual Wealth). As a result, the fund received an allocation of Quilter plc shares, following the delisting of Old Mutual plc. The managers will look to sell these shares at an opportune time.

The fund continues to adhere to its policy.