Introduction - Angles & Perspectives Q4 2023

Introduction

The investments business is one where people tend to be most comfortable when things can be quantified precisely, but, as we know, very little in life can be defined that clearly or pinned down so neatly.

These days, there is a growing appreciation for the importance of culture – not only within organisations generally, but specifically in the investments business. For fund managers, culture can be the make-or-break ingredient when it comes to delivering consistent long-term investment excellence, and yet quantifying what makes a great culture is far from easy. In the first article, Head of Research Kevin Cousins and Co-CIO Greg Hopkins explain how a focus on culture supports our investment process, and aids us in our ability to deliver long-term investment excellence to our clients.

Risk is one of those areas where investment professionals prefer to rely on clear metrics – and Value at Risk is an example of one such measure which has become ubiquitous in the industry. However, risk is a multi-faceted concept, and attempts to reduce it to an easily measurable metric can result in some context being lost. Head of Equities Justin Floor and Co-CIO John Gilchrist discuss the pitfalls of relying solely on one metric to quantify risk in their article We are what we measure – getting to grips with volatility. They then explain our preference for a combination of various quantitative and qualitative measures when evaluating risk, and evaluating our funds’ performance from that perspective.

In our final article, we turn our attention to the risky business of investing in SA assets. With the risks in South Africa being both so visible and serious, the default option for many investors is simply to favour offshore investments instead. However, despite the challenges, PSG Asset Management is positive about the potential returns on offer from South African assets. In the final article, Head of Equities Justin Floor and Fund Manager Dirk Jooste share their thoughts on this profound investment challenge, and explain our approach to finding value for our clients, even under difficult conditions.

At PSG Asset Management, we remain focused on consistently applying our 3M investment approach, no matter how ‘risky’ and uncertain the environment may become. Our long-term track record highlights our ability to find underappreciated gems that have the best potential to help our clients build wealth in the long run, even under uncertain and trying conditions and across asset classes.

We trust that you will find these articles insightful, and their guidance valuable, in these turbulent times.