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0.07  /  0.07%


NAV on 2020/02/24
NAV on 2020/02/21 104.56
52 week high on 2019/08/30 104.63
52 week low on 2019/03/01 102.49
Total Expense Ratio on 2019/12/31 0.83
Total Expense Ratio (performance fee) on 2019/12/31 0
NAV Incl Dividends
1 month change 0.7% 0.7%
3 month change 0.16% 1.99%
6 month change 0.1% 3.81%
1 year change 0.32% 8.01%
5 year change 0.3% 8.02%
10 year change 0% 0%
Price data is updated once a day.
  • Sectoral allocations
General Equity 16.48 5.66%
Liquid Assets 274.89 94.34%
  • Top five holdings
FINANCEINSTIT 224.18 76.94%
  • Performance against peers
  • Fund data  
Management company:
PSG Collective Investments (RF) Ltd.
Formation date:
ISIN code:
Short name:
Low - Medium
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 - Sep 19

2019/10/25 00:00:00
Current context Investment markets continue to be event-driven, with trade wars and related global growth concerns driving rate cuts by the US Federal Reserve. This has led to a sharp downward move in US bond yields and, for the first time since 2007, an inversion of the US yield curve (with 2-year bonds trading at a higher yield than 10-year bonds) in August 2019. The clear indication from the US bond market is that US growth and inflation are expected to be lower going forward. Locally, after a disappointing first-quarter GDP decline of 3.1% and stable inflation, markets were pricing in rate cuts of 0.5% over the next six to twelve months in late June 2019. The South African Reserve Bank cut rates by 0.25% in July 2019. Despite a 3.1% rebound in GDP in the second quarter of the year, a further 0.25% cut is still being priced in by the markets. South African bond yields increased marginally across the curve over the quarter, but performance year-to-date remains solid, driven by declines in bond yields relative to their elevated starting yields (cheap valuations) in late 2018.
Our perspective The extreme divergences we are currently seeing in the valuations of popular securities compared to those investors are shying away from are rare, and present risks as well as opportunities. Investors seeking a smoother ride by switching to cash or buying high-quality counters at any cost may find that this ‘fail safe’ proves to be the opposite over the longer term. Missing out on the gains from a market recovery can dramatically erode an investment outcome. Similarly, buying securities at lofty valuations underpinned by high growth expectations may result in losses if expectations prove to be unsustainable.
In contrast, areas in which valuations have been driven lower due to fear and uncertainty present the potential for mispricing. Where prices fall across the board – an entire sector or geography, for example – quality securities become available cheaply, along with the rest. Tainted by pessimism, their earnings potential is easily overlooked. While it may take time for the market to realise mispriced value, investors who can ride out the storm stand to generate outsized returns from such attractive entry points.
Portfolio positioning We have used the opportunity presented by the steep yield curve and the high real yields available to add to bond holdings and move exposures further out on the yield curve (to higher-duration bonds).
From highs of around 9.5%, five-year negotiable certificates of deposit (NCDs) are now yielding around 8.1%. As yields fall, security prices rise, implying that the shorter-term instruments held in the funds offer significant embedded value. However, consistent with our approach, lower real yields have made us more cautious. We have been more selective in extending current positions in fixed-rate NCDs, however wider spreads in floating-rate NCDs have offered an interesting opportunity.
Credit spreads have continued to contract as market participants search for yield, and we believe many credit instruments no longer offer a sufficient margin of safety. Where we have seen credit spreads tightening, we have been selective sellers. We continue to hold credit where we see low probability of default risk and where spreads are above our estimates of fair value.
  • 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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