May 2024
Adriaan Pask, Chief Investment Officer
PSG Wealth
US stocks rose on Wednesday following the US Federal Reserve's (Fed) decision to keep its key interest rate unchanged between 5.25% to 5.50%, as anticipated. The Fed also hinted that its next move is likely to be a rate cut. According to Trading Economics: “Policymakers acknowledged that while inflation has moderated over the past year, it remains elevated, and there has been a notable lack of further progress towards achieving the central bank's goal in recent months. Still, Chairman (Jerome) Powell stated that he does not foresee a hike as likely and believes that the current policy is sufficiently restrictive to achieve the 2% inflation target.” Both the S&P 500 and Nasdaq climbed more than 1% after these annoucements, rebounding from earlier losses, while the Dow Jones extended its gains to nearly 500 points at 20h20.
On Tuesday, the Shanghai Composite dropped by 0.26%, while the Shenzhen Component fell by 0.90%. This marked a reversal from a four-day upward trend as investors became more cautious before the long Labour Day holiday in China. Trading in mainland markets will resume next Monday. Investors also considered official data indicating that Chinese manufacturing and services sector activities continued to expand in April, albeit at a slower pace. The Nikkei 225 Index declined by 0.34% on Wednesday. This retreat followed a recent rise to two-week highs and mirrored a significant sell-off on Wall Street. The sell-off was triggered by a surge in Treasury yields following stronger-than-expected US wage data. Additionally, investors adopted a more cautious stance ahead of the US Federal Reserve's policy decision late last night.
Local markets were closed yesterday as the country observed Worker’s Day.
The FTSE 100 index closed 0.30% lower on Wednesday, relinquishing early gains and easing slightly from the previous session's record high. Investors were evaluating a slew of corporate earnings reports and preparing for the Federal Reserve's decision after the London Stock Exchange's closing bell. Meanwhile, Frankfurt's DAX extended its early losses and finished 1% lower on Tuesday, tracking the sharp decline in European equities. Despite economic data showing that the Eurozone's GDP expanded by 0.30% in the first quarter of the year, surpassing expectations of a 0.10% increase. This growth was supported by a stronger-than-expected domestic growth rate of 0.20%.
In commodities, crude oil fell to below $83.50 a barrel on Wednesday, driven by a rebound in US crude stockpiles, which bolstered supply, and optimism regarding a potential ceasefire in the Middle East, which reduced the commodity's risk premium.
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Date | Index | Current Level | 1 Day Move | 1 Month Move | 6 Month Move | 1 Year Move |
---|---|---|---|---|---|---|
2024-05-16 | ALSI | 79361.57 | 0.93 | 6.97 | 8.32 | 5.48 |
2024-05-16 | Basic minerals | 46284.38 | 0.85 | -1.44 | 14.26 | -4.84 |
2024-05-16 | Fin + Ind 30 | 10309.39 | 0.97 | 9.81 | 6.93 | 10.56 |
2024-05-16 | Financial | 41847.76 | 1.35 | 9.24 | 2.12 | 21.50 |
2024-05-16 | Industrial index | 118172.80 | 0.72 | 10.99 | 9.37 | 5.85 |
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
ASISA category | Fund name | NAV (Rands) at 16 May 2024 | Performance –As at 2024/04/30 | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |||
South Africa - Equity - General | PSG Equity Fund Class A | 16.93 | 5.75 | 16.54 | 9.96 | 12.82 |
PSG Equity Fund Class A | 16.93 | 5.75 | 16.54 | 9.96 | 12.82 | |
PSG Equity Fund Class E | 16.91 | 4.60 | 15.91 | 9.98 | 8.86 | |
PSG Equity Fund Class F | 16.98 | 6.24 | 17.08 | 10.47 | 9.84 | |
PSG SA Equity Class F | 1.60 | 5.00 | 17.16 | 8.77 | 7.23 | |
PSG Wealth Creator Fund of Funds Class D | 53.84 | 5.87 | 9.89 | 10.17 | 11.95 | |
South Africa - Multi Asset - Flexible | PSG Flexible Fund Class A | 8.08 | 5.13 | 15.39 | 10.16 | 11.26 |
PSG Flexible Fund Class A | 8.08 | 5.13 | 15.39 | 10.16 | 11.26 | |
PSG Flexible Fund Class E | 8.09 | 5.41 | 15.70 | 10.44 | 10.13 | |
South Africa - Multi Asset - High Equity | PSG Balanced Fund Class A | 97.95 | 4.17 | 13.85 | 10.20 | 12.73 |
PSG Balanced Fund Class A | 97.95 | 4.17 | 13.85 | 10.20 | 12.73 | |
PSG Balanced Fund Class E | 98.07 | 4.77 | 14.50 | 10.84 | 9.69 | |
PSG Wealth Moderate Fund of Funds Class D | 41.39 | 7.81 | 9.61 | 8.73 | 10.69 | |
South Africa - Multi Asset - Low Equity | PSG Stable Fund Class A | 1.65 | 4.93 | 9.82 | 7.48 | 8.29 |
PSG Stable Fund Class A | 1.65 | 4.93 | 9.82 | 7.48 | 8.29 | |
PSG Stable Fund Class E | 1.65 | 5.54 | 10.45 | 8.09 | 8.03 | |
PSG Wealth Preserver Fund of Funds Class D | 24.85 | 7.37 | 8.26 | 7.41 | 8.98 | |
South Africa - Multi Asset - Income | PSG Diversified Income Fund Class A | 1.32 | 7.91 | 7.99 | 7.82 | 7.84 |
PSG Diversified Income Fund Class A | 1.32 | 7.91 | 7.99 | 7.82 | 7.84 | |
PSG Diversified Income Fund Class E | 1.32 | 8.59 | 8.61 | 8.39 | 8.28 | |
PSG Wealth Income Fund of Funds Class D | 12.50 | 8.16 | 7.41 | 6.96 | 7.80 | |
South Africa - Interest Bearing - Short Term | PSG Income Fund Class A | 1.08 | 8.14 | 6.76 | 7.27 | 7.11 |
PSG Income Fund Class A | 1.08 | 8.14 | 6.76 | 7.27 | 7.11 | |
PSG Income Fund Class E | 1.08 | 8.46 | 7.07 | 7.59 | 7.77 | |
PSG Wealth Enhanced Interest Fund of Funds Class D | 1.02 | 9.15 | 6.75 | 6.51 | 6.73 | |
South Africa - Interest Bearing - Money Market | PSG Money Market Fund Class A | 1.00 | 8.35 | 6.12 | 5.85 | 7.95 |
PSG Money Market Fund Class A | 1.00 | 8.35 | 6.12 | 5.85 | 7.95 | |
PSG Money Market Fund Class F | 1.00 | 8.66 | 6.40 | 6.12 | 5.30 | |
South African - Multi Asset - Low Equity | PSG Investment Management Cautious Fund of Funds Class D | 1.32 | 6.60 | 9.51 | — | 9.99 |
PSG Investment Management Cautious Fund of Funds Class D | 1.32 | 6.60 | 9.51 | — | 9.99 | |
South African - Multi Asset - High Equity | PSG Investment Management Growth Fund of Funds Class D | 1.54 | 5.17 | 11.95 | — | 12.03 |
PSG Investment Management Growth Fund of Funds Class D | 1.54 | 5.17 | 11.95 | — | 12.03 | |
South African - Multi Asset - Income | PSG Investment Management Multi-Asset Income Fund of Funds Class D | 1.14 | 7.57 | 7.42 | — | 7.67 |
PSG Investment Management Multi-Asset Income Fund of Funds Class D | 1.14 | 7.57 | 7.42 | — | 7.67 |
Performance data on local funds is shown up to the last market close minus 1 day.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
Through our tried-and tested investment philosophy, we have built competitive global solutions to help clients achieve their investment goals.
The following funds are rand-denominated, but invest internationally:
ASISA category | Fund name | NAV (Rands) at 16 May 2024 | Performance –As at 2024/04/30 | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |||
Global - Equity - General | PSG Global Equity Feeder Fund Class A | 4.91 | 10.55 | 18.24 | 14.36 | 13.08 |
PSG Global Equity Feeder Fund Class A | 4.91 | 10.55 | 18.24 | 14.36 | 13.08 | |
PSG Global Equity Feeder Fund Class E | 5.08 | 11.20 | 18.93 | 14.92 | 12.81 | |
PSG Wealth Global Creator Feeder Fund Class D | 4.64 | 22.27 | 11.92 | 15.34 | 15.26 | |
Global - Multi Asset - Flexible | PSG Global Flexible Feeder Fund Class A | 3.77 | 8.63 | 15.87 | 13.83 | 12.87 |
PSG Global Flexible Feeder Fund Class A | 3.77 | 8.63 | 15.87 | 13.83 | 12.87 | |
PSG Global Flexible Feeder Fund Class B | 3.96 | 9.26 | 16.54 | 14.33 | 13.37 | |
PSG Wealth Global Flexible Feeder Fund Class D | 4.79 | 9.50 | 7.25 | 10.48 | 11.15 | |
PSG Wealth Global Moderate Feeder Fund Class D | 4.91 | 10.96 | 8.96 | 9.94 | 12.44 | |
Global - Multi Asset - Low Equity | PSG Wealth Global Preserver Feeder Fund Class D | 1.52 | 8.38 | 8.91 | 7.95 | 7.08 |
PSG Wealth Global Preserver Feeder Fund Class D | 1.52 | 8.38 | 8.91 | 7.95 | 7.08 |
Performance data on offshore funds is shown up to the last market close minus 2 days.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
The following funds invest internationally using foreign currency
ASISA category | Fund name | NAV (Rands) at 15 May 2024 | Performance –As at 2024/04/30 | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |||
EAA Fund GBP Cautious Allocation | PSG Wealth Global Preserver FoF (GBP) Class D | 2.07 | 6.10 | 1.87 | 2.29 | 4.96 |
PSG Wealth Global Preserver FoF (GBP) Class D | 2.07 | 6.10 | 1.87 | 2.29 | 4.96 | |
EAA Fund GBP Flexible Allocation | PSG Wealth Global Flexible FoF (GBP) Class D | 3.80 | 5.64 | 1.53 | 5.43 | 9.20 |
PSG Wealth Global Flexible FoF (GBP) Class D | 3.80 | 5.64 | 1.53 | 5.43 | 9.20 | |
EAA Fund Global Flex-Cap Equity | PSG Global Equity Sub-Fund Class A | 2.29 | 4.10 | 7.90 | 8.19 | 5.84 |
PSG Global Equity Sub-Fund Class A | 2.29 | 4.10 | 7.90 | 8.19 | 5.84 | |
PSG Global Equity Sub-Fund Class B | 2.36 | 4.69 | 8.51 | 8.81 | 7.01 | |
EAA Fund Global Large-Cap Blend Equity | PSG Wealth Global Creator Fund of Funds Class D | 2.94 | 15.91 | 1.87 | 8.85 | 9.43 |
PSG Wealth Global Creator Fund of Funds Class D | 2.94 | 15.91 | 1.87 | 8.85 | 9.43 | |
EAA Fund USD Cautious Allocation | PSG Wealth Global Preserver FoF (USD) Class D | 1.69 | 5.37 | -0.57 | 1.85 | 3.43 |
PSG Wealth Global Preserver FoF (USD) Class D | 1.69 | 5.37 | -0.57 | 1.85 | 3.43 | |
EAA Fund USD Flexible Allocation | PSG Global Flexible Sub-Fund Class A | 19.69 | 2.82 | 6.11 | 7.62 | 5.78 |
PSG Global Flexible Sub-Fund Class A | 19.69 | 2.82 | 6.11 | 7.62 | 5.78 | |
PSG Global Flexible Sub-Fund Class B | 20.87 | 3.30 | 6.60 | 8.20 | 6.40 | |
PSG Investment Management Global Flexible Fund of Funds (Dollar) | 1.60 | 4.36 | -3.28 | 2.51 | 2.52 | |
PSG Wealth Global Flexible FoF (USD) Class D | 3.10 | 5.36 | -1.90 | 4.41 | 7.65 | |
EAA Fund USD Moderate Allocation | PSG Wealth Global Moderate Fund of Funds Class D | 2.05 | 7.06 | -0.51 | 3.86 | 5.01 |
PSG Wealth Global Moderate Fund of Funds Class D | 2.05 | 7.06 | -0.51 | 3.86 | 5.01 |
Performance data on offshore funds is shown up to the last market close minus 2 days.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
Fund display name | Performance –As at 2024/05/16 | |||
---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |
PSG Wealth Income Growth Equity Portfolio | 10.42 | 5.61 | 0.67 | 1.89 |
PSG Wealth Offshore Equity Portfolio (USD) | 16.45 | 4.55 | 10.82 | 11.82 |
PSG Wealth SA Equity Portfolio | 3.22 | 3.67 | 2.02 | 3.52 |
PSG Wealth SA Property Equity Portfolio | 19.06 | 8.58 | -1.74 | -2.85 |
* PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs.
The House view portfolios are bespoke solution portfolios and not part of the Collective Investment Schemes’ portfolios.
Tencent, the largest contributor to the NAV of Naspers and Prosus released its full-year results in March 2024. The market had a neutral reaction to the results, which were mixed. Naspers and Prosus are expected to release the full-year results in June 2024.
In the report, we summarise Tencent’s latest results, update valuation and provide an update on Naspers and Prosus’ respective discounts to NAV. Tencent is trading 4% lower while the respective share prices of Naspers and Prosus are relatively unchanged since our last report in November 2023 (hold recommendation).
Our intrinsic value on Naspers and Prosus has increased marginally due to the market movements of listed investments and the impact of share repurchases. We maintain a hold recommendation for both counters. We also anticipate that Naspers and Prosus will not perform as well as
Tencent, given a potential rebound which depends partly on the successful launch of new games in 2024, improved sentiment towards China, a strengthened Chinese economy, and, importantly, a favourable regulatory environment.
Our research supports a hold recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
On 5 March 2024, Nedbank released its full-year 2023 results. Highlights from the results were as follows: · Headline earnings were up by 11%, with revenue (+12%) rising more than operating costs (+8%).
· Net interest income increased by 14%, with the interest margin rising from 3.93% to 4.21%, benefitting from the endowment rate impact.
· Average interest-earning banking assets grew by 7% from R922 billion to R986 billion.
· Non-interest revenue increased by 6% to R27.7 billion, boosted by fair value adjustments and exchange rate fluctuations on US$ assets in Zimbabwe.
· Expenses increased by 8% to R38.1 billion, with staff costs being the main driver due to salaries and wages increasing by 9%. Headcount decreased by 2%.
Our research supports a buy recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
On 4 March 2024, Aspen released its half-year financial results for the six months ended 31 December 2023. · Total sales increased by 10.40% to R21.1bn, but up only 2% when adjusted for currency.
· EPS (cents) increased by 1.20% from 680 (cents in Dec 2022) to 688 (cents) in Dec 2023.
· EBITDA margins decreased from 26.50% to 24.60% as the company unwinds an inventory backlog of Heparin.
· The acquisition of a portfolio of drugs from Viatris, management of the Chinese volume-based procurement and filling of the vacant sterile contracts will lift growth going forward.
Our research supports a hold recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
View the Economic Calendar
Date | Company | Share code | Expectation |
---|---|---|---|
02 May 2024 | Anheuser-Busch InBev SA/NV | ANH | Cash Dividend |
02 May 2024 | Newbelco Restricted Shares | UNBL | Cash Dividend |
The information above is to the best of our knowledge correct.
The Corporate Actions are updated weekly.
Collective Investment Schemes in Securities (CIS) are generally medium-term to long-term investments. The value of participatory interests (units) may go down as well as up and past performance is not a guide to future performance. Collective Investment Schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from PSG Collective Investments (RF) Limited. Commission and incentives may be paid, and if so, are included in the overall costs. Forward pricing is used. The Portfolios may be capped at any time in order for them to be managed in accordance with their mandate.
Performance is calculated for the portfolio and individual investor performance may differ as a result thereof. Different classes of participatory interest can apply to these portfolios and are subject to different fees, charges and possibly dividend withholding tax and will thus have differing performances. Annualised performances show longer term performance rescaled over a 12-month period. Individual performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The portfolio is valued at 15h00 daily. Income distributions are net of any applicable taxes. Investment performance data is for illustrative purposes only. Actual performance figures are available on request. Always refer to the fund fact sheet (Minimum Disclosure Document) for full details, fees and risks of the fund.
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