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Business Review
Refining an enviable team
We continue to hone our capabilities across the executive, operational,
sales and investment teams. The fixed income capability in particular
has been strengthened considerably, an important element in
maintaining our excellent track record in multi-asset funds. The
expertise and tenure of our people make us a great place to build
a career in investment management, and one that talented people
want to be part of.
Looking forward
PSG Asset Management has the building blocks in place to achieve
our goal of becoming an admired fund manager that is taken seriously
by small and large investors. We are proud to have a strong, committed
shareholder behind us, while still being able to take advantage of our
size when it comes to investment opportunities. Our team-based
investment process emphasises risk and consistency from the clients’
point of view and is formalised, yet deceptively simple to explain. The
efficacy of the way we do things is evident in the solid long-term track
records of our flagship products.
Building on strong foundations
For PSG Asset Management, the year ending February 2014 was one
with a strong focus on building on the foundation laid in prior years, to
build a much more substantial asset manager. This involved ensuring
that an appropriate pricing policy and product suite are in place, and
an intensified marketing effort to increase awareness among investors
and intermediaries.
Maintaining superior performance
The investment team continued to build on the enviable long-term
performance track record. Several funds ended the year in the top
decile, while displaying pleasing risk characteristics – a combination
ideally aligned with what most clients prefer. They distinguished
themselves by avoiding several tempting value traps in the South
African equity market, while utilising their skills in selecting shares
across the globe to ensure that clients get the full benefit of the
extended investment universe.
Double the flows
Net flows amounted to R3.0bn into PSG branded single-manager
funds (a twofold increase from the prior year), and R5bn into PSG
branded multi-manager funds. The year also brought more pension
fund clients, with further commitments indicated for the next financial
year. Our efforts to grow awareness of and support for the PSG Asset
Management in the broader IFA market started yielding results. Assets
under administration grew by 46% to R38bn.
Anet Ahern:
Chief Executive Officer
