Prosus

Euronext Amsterdam-listed (secondary JSE listing) global consumer internet group and one of the world's largest technology investors, building leading companies in online classifieds, food delivery, payments & fintech, and education technology across emerging markets globally.

“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].”