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-1.24  /  -0.12%

1057.35

NAV on 2019/05/24
NAV on 2019/05/23 1058.59
52 week high on 2018/09/03 1214.88
52 week low on 2019/05/24 1057.35
Total Expense Ratio on 2019/03/31 2.34
Total Expense Ratio (performance fee) on 2019/03/31 1.46
NAV Incl Dividends
1 month change -6.87% -6.87%
3 month change -4.52% -4.52%
6 month change -5.95% -5.95%
1 year change -9.35% -9.35%
5 year change 2.79% 3.18%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
Basic Materials 592.64 12.05%
Consumer Goods 504.03 10.25%
Consumer Services 191.46 3.89%
Financials 1209.28 24.59%
Industrials 905.51 18.41%
Liquid Assets 19.45 0.40%
Technology 16.92 0.34%
Offshore 1478.75 30.07%
  • Top five holdings
FINANCIALS 1114.73 22.67%
INDUSTRIALS 905.51 18.41%
BASICMATERIAL 592.64 12.05%
CONSUMERGDS 504.03 10.25%
CONSUMERSRVS 191.46 3.89%
  • Performance against peers
  • Fund data  
Management company:
PSG Collective Investments (RF) Ltd.
Formation date:
1997/12/31
ISIN code:
ZAE000181574
Short name:
U-PSGGROW
Risk:
Unknown
Sector:
South African--Equity--General
Benchmark:
FTSE/JSE All Share Total Return Index
Contact details

Email
assetmanagement@psg.co.za

Website
http://www.psg.co.za/asset-management

Telephone
021-799-8000

  • Fund management  
Shaun le Roux
Greg Hopkins
PSG Asset Management (Pty) Ltd.
Gustav Schulenburg


  • Fund manager's comment

PSG Equity comment - Jun 17

2017/09/08 00:00:00
Current context
At an index level (FTSE/JSE All Share Index), the JSE has gained 3.4% this year. However, all of this can be attributed to one share: Naspers (up 26%). Most shares on the JSE have declined in 2017. High levels of political uncertainty and weak economic conditions in South Africa have seen widespread selling of domestic equities, particularly by foreigners. South African banks are down 5%, the general retail sector is down 8% and the broad mid-cap sector is down 7%. Generally, confidence levels are very low and the sentiment around local equities is very poor. In contrast, global equity markets have generally enjoyed a strong year – South Africa is a stand-out underperformer.
Our perspective
The current market environment is a difficult one in which to make short-term investment decisions. This is an unpredictable time, and can result in portfolios being positioned around binary potential outcomes. We position our portfolios based on a consistent process that ensures inherent quality and sufficient margin of safety in all instruments we buy. We also avoid building binary portfolios that are skewed towards any particular outcome. Although this may result in short-term underperformance, we believe it increases the number of outcomes in which we will achieve the benchmarks set by our funds over the relevant time horizons.
Large parts of the South African market are currently deeply out of favour due to the political backdrop, recessionary conditions and aggressive foreign selling. As a result, we can buy quality companies at a widening margin of safety. We believe that this environment – where there are very diverse valuations on equity markets – is good for making long-term investment decisions.
The broad perception of the market is that risk is low when share prices are high, and have been rising. Contrary to this view, we think that risk is in fact lower when share prices are low (as is currently the case with out-of-favour domestic counters). We do not consider very expensive stocks that are deemed to be defensive as low-risk investment opportunities, and we expect muted long-term performance from such stocks. We believe the market is missing the fact that earnings are depressed for many South African companies, and we expect earnings to improve for most of our local investments despite the recessionary conditions. The combination of low earnings and low valuations supports strong long-term investment returns.
Portfolio positioning
We have taken full advantage of our offshore allocation (25%) to invest in high-conviction global ideas. While we anticipate superior returns from some of our domestic opportunities after the recent price declines, we continue to believe that our offshore holdings offer important diversification benefits as well as attractive long-term returns.
We think it is a good environment for long-term stock picking, and have a track record of generating good returns for our clients in tough times when sentiment is poor. Typically, we have enjoyed strong subsequent medium-term outperformance when fear is prevalent.
  • Fund focus and objective  
The PSG Equity Fund is a general equity fund and the manager in selecting securities for the portfolio, will seek to offer investors long-term capital growth and earn a higher rate of return than that of the South African equity market as represented by the FTSE/JSE All Share Index including income, without assuming a greater risk. The investment policy allows the fund to include listed and unlisted financial instruments (derivatives).
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