April 2024
Adriaan Pask, Chief Investment Officer
PSG Wealth
After a preliminary GDP report indicated that the US economy had slowed down significantly in the first quarter of 2024 and pointed to persistent inflation, US stocks closed in the red on Thursday. The Dow Jones shed 375 points, while the S&P 500 lost about 0.50%, and the Nasdaq fell 0.60%. According to the report, compared to expectations of a 2.50% increase, the US economy grew at an annualised rate of 1.60% in 1Q24. However, core PCE prices increased by 3.70%, surpassing expectations. In addition to the economic data, disappointing earnings reports from companies like Meta and IBM also weighed on market sentiment. The report heightened fears about ongoing inflationary pressures and whether the Federal Reserve would be able to deliver an interest-rate cut anytime soon. According to the CME FedWatch Tool, traders now expect only one interest rate cut this year.
European markets closed lower on Thursday, with the STOXX 50 losing 1% and the STOXX 600 falling 0.65%, as new US data raised concerns about the bloc's economic strength and the continuing rise of inflationary pressures.
Asian equity markets traded in mixed fashion on Thursday, pressured by a decline in US stock futures as Meta Platforms fell in after-hours trading following disappointing second-quarter revenue guidance. The Shanghai Composite increased 0.27% to close at 3 053, while the Shenzhen Component rose 0.14% to 9 264, as mainland stocks advanced for the second consecutive session amid improving market sentiment and China's macroeconomic outlook. The Nikkei increased by 0.10% to about 37 665 on Thursday, as investors remained cautious ahead of the Bank of Japan's policy meeting. The central bank is widely expected to keep interest rates near zero, but market participants continue to scan for hawkish signs as the yen weakened past 155 per dollar.
The local bourse closed modestly lower on Thursday, with global counterparts unsettled as investors analysed data revealing that the US economy slowed below expectations. “Anglo-American led the gainers on the local bourse on the day, jumping 18.92% to R611 after BHP Group confirmed on Thursday that it had proposed its London-listed rival regarding a potential combination to be affected by way of an arrangement valuing its rival miner at £31.1bn,” Business Day reported. The FTSE/JSE All Share Index lost 0.25% to 74 329 points, while the rand weakened 0.82% to R19.04/$, 0.62% to R20.40/€ and 0.58% to R23.78/£ at the close of business.
Thursday saw little movement in oil prices as a decline in fuel demand in the US, combined with signs of a slowing economy and concerns about a worsening conflict in the Middle East weighed on market sentiment. Brent crude futures rose to $88.11 a barrel, after falling 0.50% in the previous session. Gold gained 0.76% to $2 333.5/oz while platinum added 0.88% to $920.30/oz at 18h30.
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Date | Index | Current Level | 1 Day Move | 1 Month Move | 6 Month Move | 1 Year Move |
---|---|---|---|---|---|---|
2024-05-06 | ALSI | 76428.33 | 0.50 | 3.87 | 7.02 | 1.57 |
2024-05-06 | Basic minerals | 43980.08 | 0.03 | 2.50 | 8.61 | -9.06 |
2024-05-06 | Fin + Ind 30 | 9966.21 | 0.63 | 4.25 | 7.27 | 6.77 |
2024-05-06 | Financial | 40634.80 | -0.16 | 4.46 | 1.82 | 12.76 |
2024-05-06 | Industrial index | 113891.67 | 1.18 | 4.49 | 9.77 | 3.62 |
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
ASISA category | Fund name | NAV (Rands) at 03 May 2024 | Performance –As at 2024/04/30 | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |||
South Africa - Equity - General | PSG Equity Fund Class A | 16.37 | 5.75 | 16.54 | 9.96 | 12.82 |
PSG Equity Fund Class A | 16.37 | 5.75 | 16.54 | 9.96 | 12.82 | |
PSG Equity Fund Class E | 16.36 | 4.60 | 15.91 | 9.98 | 8.86 | |
PSG Equity Fund Class F | 16.42 | 6.24 | 17.08 | 10.47 | 9.84 | |
PSG SA Equity Class F | 1.54 | 5.00 | 17.16 | 8.77 | 7.23 | |
PSG Wealth Creator Fund of Funds Class D | 51.92 | 5.87 | 9.89 | 10.17 | 11.95 | |
South Africa - Multi Asset - Flexible | PSG Flexible Fund Class A | 7.86 | 5.13 | 15.39 | 10.16 | 11.26 |
PSG Flexible Fund Class A | 7.86 | 5.13 | 15.39 | 10.16 | 11.26 | |
PSG Flexible Fund Class E | 7.86 | 5.41 | 15.70 | 10.44 | 10.13 | |
South Africa - Multi Asset - High Equity | PSG Balanced Fund Class A | 95.59 | 4.17 | 13.85 | 10.20 | 12.73 |
PSG Balanced Fund Class A | 95.59 | 4.17 | 13.85 | 10.20 | 12.73 | |
PSG Balanced Fund Class E | 95.68 | 4.77 | 14.50 | 10.84 | 9.69 | |
PSG Wealth Moderate Fund of Funds Class D | 40.46 | 7.81 | 9.61 | 8.73 | 10.69 | |
South Africa - Multi Asset - Low Equity | PSG Stable Fund Class A | 1.62 | 4.93 | 9.82 | 7.48 | 8.29 |
PSG Stable Fund Class A | 1.62 | 4.93 | 9.82 | 7.48 | 8.29 | |
PSG Stable Fund Class E | 1.63 | 5.54 | 10.45 | 8.09 | 8.03 | |
PSG Wealth Preserver Fund of Funds Class D | 24.53 | 7.37 | 8.26 | 7.41 | 8.98 | |
South Africa - Multi Asset - Income | PSG Diversified Income Fund Class A | 1.31 | 7.91 | 7.99 | 7.82 | 7.84 |
PSG Diversified Income Fund Class A | 1.31 | 7.91 | 7.99 | 7.82 | 7.84 | |
PSG Diversified Income Fund Class E | 1.31 | 8.59 | 8.61 | 8.39 | 8.28 | |
PSG Wealth Income Fund of Funds Class D | 12.44 | 8.16 | 7.41 | 6.96 | 7.80 | |
South Africa - Interest Bearing - Short Term | PSG Income Fund Class A | 1.08 | 8.14 | 6.76 | 7.27 | 7.11 |
PSG Income Fund Class A | 1.08 | 8.14 | 6.76 | 7.27 | 7.11 | |
PSG Income Fund Class E | 1.08 | 8.46 | 7.07 | 7.59 | 7.77 | |
PSG Wealth Enhanced Interest Fund of Funds Class D | 1.01 | 9.15 | 6.75 | 6.51 | 6.73 | |
South Africa - Interest Bearing - Money Market | PSG Money Market Fund Class A | 1.00 | 7.64 | 5.88 | 5.71 | 7.92 |
PSG Money Market Fund Class A | 1.00 | 7.64 | 5.88 | 5.71 | 7.92 | |
PSG Money Market Fund Class F | 1.00 | 7.92 | 6.16 | 5.97 | 5.23 | |
South African - Multi Asset - Low Equity | PSG Investment Management Cautious Fund of Funds Class D | 1.30 | 6.60 | 9.51 | — | 9.99 |
PSG Investment Management Cautious Fund of Funds Class D | 1.30 | 6.60 | 9.51 | — | 9.99 | |
South African - Multi Asset - High Equity | PSG Investment Management Growth Fund of Funds Class D | 1.50 | 5.17 | 11.95 | — | 12.03 |
PSG Investment Management Growth Fund of Funds Class D | 1.50 | 5.17 | 11.95 | — | 12.03 | |
South African - Multi Asset - Income | PSG Investment Management Multi-Asset Income Fund of Funds Class D | 1.13 | 7.57 | 7.42 | — | 7.67 |
PSG Investment Management Multi-Asset Income Fund of Funds Class D | 1.13 | 7.57 | 7.42 | — | 7.67 |
Performance data on local funds is shown up to the last market close minus 1 day.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
Through our tried-and tested investment philosophy, we have built competitive global solutions to help clients achieve their investment goals.
The following funds are rand-denominated, but invest internationally:
ASISA category | Fund name | NAV (Rands) at 03 May 2024 | Performance –As at 2024/04/30 | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |||
Global - Equity - General | PSG Global Equity Feeder Fund Class A | 4.77 | 10.55 | 18.24 | 14.36 | 13.08 |
PSG Global Equity Feeder Fund Class A | 4.77 | 10.55 | 18.24 | 14.36 | 13.08 | |
PSG Global Equity Feeder Fund Class E | 4.94 | 11.20 | 18.93 | 14.92 | 12.81 | |
PSG Wealth Global Creator Feeder Fund Class D | 4.49 | 22.27 | 11.92 | 15.34 | 15.26 | |
Global - Multi Asset - Flexible | PSG Global Flexible Feeder Fund Class A | 3.69 | 8.63 | 15.87 | 13.83 | 12.87 |
PSG Global Flexible Feeder Fund Class A | 3.69 | 8.63 | 15.87 | 13.83 | 12.87 | |
PSG Global Flexible Feeder Fund Class B | 3.87 | 9.26 | 16.54 | 14.33 | 13.37 | |
PSG Wealth Global Flexible Feeder Fund Class D | 4.68 | 9.50 | 7.25 | 10.48 | 11.15 | |
PSG Wealth Global Moderate Feeder Fund Class D | 4.80 | 10.96 | 8.96 | 9.94 | 12.44 | |
Global - Multi Asset - Low Equity | PSG Wealth Global Preserver Feeder Fund Class D | 1.51 | 8.38 | 8.91 | 7.95 | 7.08 |
PSG Wealth Global Preserver Feeder Fund Class D | 1.51 | 8.38 | 8.91 | 7.95 | 7.08 |
Performance data on offshore funds is shown up to the last market close minus 2 days.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
The following funds invest internationally using foreign currency
ASISA category | Fund name | NAV (Rands) at 02 May 2024 | Performance –As at 2024/04/30 | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |||
EAA Fund GBP Cautious Allocation | PSG Wealth Global Preserver FoF (GBP) Class D | 2.06 | 6.10 | 1.87 | 2.29 | 4.96 |
PSG Wealth Global Preserver FoF (GBP) Class D | 2.06 | 6.10 | 1.87 | 2.29 | 4.96 | |
EAA Fund GBP Flexible Allocation | PSG Wealth Global Flexible FoF (GBP) Class D | 3.70 | 5.64 | 1.53 | 5.43 | 9.20 |
PSG Wealth Global Flexible FoF (GBP) Class D | 3.70 | 5.64 | 1.53 | 5.43 | 9.20 | |
EAA Fund Global Flex-Cap Equity | PSG Global Equity Sub-Fund Class A | 2.20 | 4.10 | 7.90 | 8.19 | 5.84 |
PSG Global Equity Sub-Fund Class A | 2.20 | 4.10 | 7.90 | 8.19 | 5.84 | |
PSG Global Equity Sub-Fund Class B | 2.27 | 4.69 | 8.51 | 8.81 | 7.01 | |
EAA Fund Global Large-Cap Blend Equity | PSG Wealth Global Creator Fund of Funds Class D | 2.81 | 15.91 | 1.87 | 8.85 | 9.43 |
PSG Wealth Global Creator Fund of Funds Class D | 2.81 | 15.91 | 1.87 | 8.85 | 9.43 | |
EAA Fund USD Cautious Allocation | PSG Wealth Global Preserver FoF (USD) Class D | 1.66 | 5.37 | -0.57 | 1.85 | 3.43 |
PSG Wealth Global Preserver FoF (USD) Class D | 1.66 | 5.37 | -0.57 | 1.85 | 3.43 | |
EAA Fund USD Flexible Allocation | PSG Global Flexible Sub-Fund Class A | 19.03 | 2.82 | 6.11 | 7.62 | 5.78 |
PSG Global Flexible Sub-Fund Class A | 19.03 | 2.82 | 6.11 | 7.62 | 5.78 | |
PSG Global Flexible Sub-Fund Class B | 20.16 | 3.30 | 6.60 | 8.20 | 6.40 | |
PSG Investment Management Global Flexible Fund of Funds (Dollar) | 1.55 | 4.36 | -3.28 | 2.51 | 2.52 | |
PSG Wealth Global Flexible FoF (USD) Class D | 3.00 | 5.36 | -1.90 | 4.41 | 7.65 | |
EAA Fund USD Moderate Allocation | PSG Wealth Global Moderate Fund of Funds Class D | 1.98 | 7.06 | -0.51 | 3.86 | 5.01 |
PSG Wealth Global Moderate Fund of Funds Class D | 1.98 | 7.06 | -0.51 | 3.86 | 5.01 |
Performance data on offshore funds is shown up to the last market close minus 2 days.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
Fund display name | Performance –As at 2024/05/03 | |||
---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |
PSG Wealth Income Growth Equity Portfolio | 4.33 | 5.54 | -0.46 | 1.56 |
PSG Wealth Offshore Equity Portfolio (USD) | 11.01 | 3.78 | 9.80 | 11.43 |
PSG Wealth SA Equity Portfolio | -2.41 | 2.36 | 0.51 | 3.07 |
PSG Wealth SA Property Equity Portfolio | 14.03 | 7.62 | -2.14 | -2.88 |
* PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs.
The House view portfolios are bespoke solution portfolios and not part of the Collective Investment Schemes’ portfolios.
Tencent, the largest contributor to the NAV of Naspers and Prosus released its full-year results in March 2024. The market had a neutral reaction to the results, which were mixed. Naspers and Prosus are expected to release the full-year results in June 2024.
In the report, we summarise Tencent’s latest results, update valuation and provide an update on Naspers and Prosus’ respective discounts to NAV. Tencent is trading 4% lower while the respective share prices of Naspers and Prosus are relatively unchanged since our last report in November 2023 (hold recommendation).
Our intrinsic value on Naspers and Prosus has increased marginally due to the market movements of listed investments and the impact of share repurchases. We maintain a hold recommendation for both counters. We also anticipate that Naspers and Prosus will not perform as well as
Tencent, given a potential rebound which depends partly on the successful launch of new games in 2024, improved sentiment towards China, a strengthened Chinese economy, and, importantly, a favourable regulatory environment.
Our research supports a hold recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
On 5 March 2024, Nedbank released its full-year 2023 results. Highlights from the results were as follows: · Headline earnings were up by 11%, with revenue (+12%) rising more than operating costs (+8%).
· Net interest income increased by 14%, with the interest margin rising from 3.93% to 4.21%, benefitting from the endowment rate impact.
· Average interest-earning banking assets grew by 7% from R922 billion to R986 billion.
· Non-interest revenue increased by 6% to R27.7 billion, boosted by fair value adjustments and exchange rate fluctuations on US$ assets in Zimbabwe.
· Expenses increased by 8% to R38.1 billion, with staff costs being the main driver due to salaries and wages increasing by 9%. Headcount decreased by 2%.
Our research supports a buy recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
On 4 March 2024, Aspen released its half-year financial results for the six months ended 31 December 2023. · Total sales increased by 10.40% to R21.1bn, but up only 2% when adjusted for currency.
· EPS (cents) increased by 1.20% from 680 (cents in Dec 2022) to 688 (cents) in Dec 2023.
· EBITDA margins decreased from 26.50% to 24.60% as the company unwinds an inventory backlog of Heparin.
· The acquisition of a portfolio of drugs from Viatris, management of the Chinese volume-based procurement and filling of the vacant sterile contracts will lift growth going forward.
Our research supports a hold recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
View the Economic Calendar
Date | Company | Share code | Expectation |
---|---|---|---|
29 April 2024 | Dra Gobal Limited | DRA | Cash Dividend |
30 April 2024 | Ascendis Health Limited | ASC | Tender Offer |
02 May 2024 | Anheuser-Busch InBev SA/NV | ANH | Cash Dividend |
02 May 2024 | Newbelco Restricted Shares | UNBL | Cash Dividend |
The information above is to the best of our knowledge correct.
The Corporate Actions are updated weekly.
Collective Investment Schemes in Securities (CIS) are generally medium-term to long-term investments. The value of participatory interests (units) may go down as well as up and past performance is not a guide to future performance. Collective Investment Schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from PSG Collective Investments (RF) Limited. Commission and incentives may be paid, and if so, are included in the overall costs. Forward pricing is used. The Portfolios may be capped at any time in order for them to be managed in accordance with their mandate.
Performance is calculated for the portfolio and individual investor performance may differ as a result thereof. Different classes of participatory interest can apply to these portfolios and are subject to different fees, charges and possibly dividend withholding tax and will thus have differing performances. Annualised performances show longer term performance rescaled over a 12-month period. Individual performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The portfolio is valued at 15h00 daily. Income distributions are net of any applicable taxes. Investment performance data is for illustrative purposes only. Actual performance figures are available on request. Always refer to the fund fact sheet (Minimum Disclosure Document) for full details, fees and risks of the fund.
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