Naspers

JSE-listed global consumer internet group and one of the largest technology investors in the world, operating through its portfolio company Prosus and investing in ecommerce, payments, food delivery and education technology across emerging markets including India, Brazil, and Europe.

“Naspers/Prosus fell -6% in the quarter (27% YTD). The weakness reflected concerns, including the near-term earnings impact of Tencent’s stepped-up AI investment, and ongoing capital allocation questions at the Naspers level. We are constructive on both. Tencent’s AI spend, while dilutive to near-term earnings, is being deployed across a massive ecosystem, spanning 1.4bn monthly active users and integration across the Chinese economy in sectors including gaming, advertising, and fintech. We believe Tencent is well-placed to be a meaningful winner as AI reshapes these industries. At the Naspers/Prosus level, there are encouraging signs of improved execution across several assets. A firm commitment to buybacks provides an additional source of value. We believe the stock is deeply undervalued and have built a sizeable position [in our equity and balanced funds].”