June 2026

Dear Investor

Enhancing the Gryphon Global Equity Fund’s Strategy

Since its launch in 2014, the Gryphon Global Equity Fund has offered investors a simple, cost-effective way to invest in developed global equity markets. Its rules-based approach has delivered performance closely aligned with the total return of the MSCI World Index.

While we firmly believe that equities is one of the best ways for investors to grow their wealth and stay ahead of inflation over the longer term, we also recognise that global equity markets do not all move in step. As the global economy and markets move through their various cycles, different regions and markets take the lead.

Further, the investment universe has changed meaningfully since the Fund was launched. Global markets are now easier and more cost-effective to access, and the range of instruments available to target specific equity-market exposures has expanded. Moreover, the MSCI World Index remains heavily weighted towards a particular set of developed markets, which may not always capture the full opportunity available across global equities.

We are therefore making a carefully considered change to the Fund’s strategy. The Fund will continue to provide rules-based exposure to global equities, but it will now be able to include selected commodity-producing markets when our indicators point to an upswing in the global commodity cycle. We believe this broadening of the strategy will enhance the return potential of the Fund for investors.

What Is Changing

Gryphon uses a set of data-based economic and market indicators to monitor the global commodity cycle.

When these indicators signal a commodity upswing, the Fund will be able to move approximately 30% of its portfolio into the equity markets of commodity-producing countries and currencies. When the indicators no longer support this exposure, the Fund will return to its core MSCI World-tracking strategy.

The Fund will remain fully invested in equities at all times. Only the mix of equity markets will change, with the Fund tilting towards commodity-producing markets when the signal is active.

Why the Commodity Cycle Matters

The commodity cycle is an important driver of global markets. When demand for commodities rises, it supports growth, company earnings and the currency of the commodity-producing countries.

During these periods, the equity markets of commodity-producing economies behave differently to the developed markets that dominate the MSCI World Index. They therefore offer opportunities that are not fully reflected in the Index.

Over the past two decades, Gryphon has developed a quantitative process for monitoring the global economic and commodity cycles, using a range of data-based indicators to identify when conditions favour the equity markets of commodity-producing countries.

The Fund’s Benchmark

The Fund’s benchmark remains the MSCI World Index.

When the commodity-cycle signal is not active, we expect the Fund’s performance to remain closely aligned with the MSCI World Index. When the signal is active, the Fund’s returns may look different from the MSCI World Index, as they will reflect the performance of those selected markets as well as their currencies.

What Will Change?

The Fund will be able to:

  • Tilt approximately 30% of its portfolio towards selected commodity-producing equity markets when supported by Gryphon’s data-based indicators.
  • Participate in opportunities not fully reflected in the MSCI World Index.
  • Seek to outperform the MSCI World Index over time, not simply match it.

What Will Not Change?

  • The Fund remains fully invested in equities.
  • Its investment process remains rules-based and informed by quantitative data.
  • The benchmark remains the MSCI World Index.
  • When the signal is not active, the Fund will follow its existing MSCI World strategy.
  • The Fund remains within the ASISA Global Equity category.
  • Its long-term focus remains growing investor wealth.

What do investors need to do?

  • No action is required by investors – if you have queries or concerns, please raise them with us.

Looking Ahead

The Fund has always been about giving investors disciplined access to global equity markets. This broadened approach builds on that foundation. As global markets evolve, and as the tools available to access them improve, we believe it is in investors’ interests to enhance the Fund’s strategy accordingly.

This change allows Gryphon’s established commodity-cycle process to be used within the Fund, giving it a broader set of equity-market opportunities while keeping it true to its rules-based approach and long-term focus.

 

Casparus Treurnicht                                                                         Ruan Goosen

Portfolio Manager                                                                           Portfolio Manager