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NAV on 2019/09/19
NAV on 2019/09/18 103.14
52 week high on 2019/08/30 104.63
52 week low on 2018/12/03 102.32
Total Expense Ratio on 2019/06/30 0.83
Total Expense Ratio (performance fee) on 2019/06/30 0
NAV Incl Dividends
1 month change -1.16% 0.67%
3 month change 0.11% 1.96%
6 month change 0.25% 4.05%
1 year change 0.75% 8.52%
5 year change 0.25% 7.91%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
General Equity 22.45 8.82%
Liquid Assets 231.99 91.18%
  • Top five holdings
FINANCEINSTIT 208.80 82.07%
  • Performance against peers
  • Fund data  
Management company:
PSG Collective Investments (RF) Ltd.
Formation date:
ISIN code:
Short name:
South African--Interest Bearing--Short Term
Stefi Composite Index
Contact details




  • Fund management  
Greg Hopkins
PSG Asset Management (Pty) Ltd.
Lyle Sankar
Duayne Le Roux

  • Fund manager's comment

PSG Income comment - Mar 19

2019/05/24 00:00:00
Current context Local fixed income assets experienced some tailwinds from Moody’s decision to keep South Africa’s credit rating unchanged. This has resulted in sovereign yields reducing slightly, as local and foreign investors continue to see value in South African government bonds. Anchored inflation - well within the South African Reserve Bank’s (SARB’s) 3% to 6% target band - has further supported yields, as the SARB has taken a more neutral stance on interest rates and maintained the existing repurchase rate of 6.75%.
Our perspective As we have noted for some time, there is pervasive fear in certain parts of investment markets. This is in complete contrast to other areas that are well owned and in which investors are inclined to be complacent. Markets therefore continue to be characterised by wide valuation divergences. We are finding far more opportunities in those parts where investors are fearful. In fact, our bottom-up analysis is indicating valuations usually seen in deep bear markets. For longer-term investors who can ride out the storm, the return profile from carefully selected securities at such low valuation levels is promising.
Local short-term interest rates have declined over the quarter, with the rate on the 1-year negotiable certificate of deposit (NCD) reducing from 8.2% to 8.1%, and the rate on the 5-year NCD reducing from 8.8% to 8.6%. This implies that the market has built in even lower interest rate increases. Fixed income yields have declined marginally, but starting yields remain high. 20-year government bonds are offering yields of around 9.5% (down from 10%) and 5-year bonds are yielding 7.6% (down from 8.1%). We expect further market noise in the run-up to the May general elections but believe that local fixed income assets present the potential for strong returns in future.
Portfolio positioning We continue to gradually reduce exposure to expensive corporate bonds and allocate cash to longer-dated NCDs. Over the quarter, the fund reduced its exposure to shorter-dated corporate fixed-rate bonds as spreads tightened. The 5-year government bond (the reference bond for these credits) is yielding around 7.6%, while bank 5-year NCDs offer close to 8.6%.
Cash levels remain healthy, with the fund holding 76.2% in cash and NCDs. This is dry powder that we expect to employ if the opportunities we currently see in many domestic securities become more widespread.
  • Fund focus and objective  
The investment objective of the PSG Income Fund is to maximise income while achieving long-term capital appreciation as interest rate cycles allow. In order to achieve its investment objective, the portfolio will be permitted to invest in assets in liquid form, a diversified range of fixed-interest securities, including but not limited to loan stock, debentures, debenture stock, bonds, unsecured notes and derivatives, whether they have inherent option rights or are convertible, as well as any other non-equity securities which may be approved by the Registrar from time to time and which are consistent with the investment policy of the portfolio.
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