JSE closed higher ahead of SONA

11 February 2021

JSE closed higher ahead of SONA

Daily Investment Update

Market commentary

	South Africa The JSE closed higher on Wednesday ahead of the State of the Nation Address where government is expected to expand on their economic recovery plan. At the closing bell, the All Share gained 1.52%.
	United States US indices were mixed as concerns over the slow pace of vaccine rollouts overshadowed reports of an increase in consumer prices over the past month.
	Europe European markets opened higher on Wednesday with commodity-linked shares and banking stocks doing the heavy lifting.
	Hong Kong The Hang Seng index rose 1.91% on Wednesday following the release of data that pointed to a sustained recovery in China’s economy.
	Japan The Nikkei looked set to rise above the psychologically important 30 000 points on Wednesday as hopes of a swift global economic recovery persisted.
	Rand The rand continued to firm against emerging market currencies on Wednesday. At 17h30, it traded at R14.67/$, R20.32/£ and R17.80/€.
	Precious metals Bullion rose to a near one-week high as a weaker dollar and hopes of additional stimulus boosted the metal’s appeal as a hedge against inflation. At 17h45, an ounce of gold traded at $1 837.96.
	Oil Brent crude continued its rally on Wednesday supported by supply cuts and optimism that vaccine rollouts will increase demand.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	66 150.82	1.52	4.19	15.00	17.83	19.61
Gold mining	3 875.59	2.13	- 2.24	- 14.17	- 37.32	39.85
Basic minerals	46 443.92	3.49	- 1.11	21.97	11.22	41.78
Industrial index	94 180.05	0.73	8.99	11.47	20.82	22.17
Financial	31 382.67	- 0.02	1.99	10.86	24.19	- 13.32
Fin + Ind 30	8 103.73	0.53	7.03	11.34	21.74	10.02
International markets (Base currency)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Dow Jones (USD)	31 437.80	0.20	1.18	7.39	14.26	9.80
S&P 500 PR (USD)	3 909.88	- 0.03	2.33	10.71	17.31	18.75
NASDAQ (USD)	13 972.53	- 0.25	6.15	19.79	27.69	48.40
FT-100 (GBP)	6 524.36	- 0.11	- 5.05	4.09	9.22	- 9.55
Hang Seng (HKD)	30 038.72	1.91	7.75	14.29	24.12	13.79
Nikkei 225 (JPY)	29 562.93	0.19	5.07	18.86	33.46	27.23
MSCI World (USD)	8 345.05	0.08	1.78	12.00	19.38	17.92
Frankfurt (EUR)	6 013.42	- 0.56	- 0.83	5.85	9.82	3.25
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 836.59	- 0.34	- 2.53	- 1.68	- 9.20	17.12
Platinum ($)	1 244.48	- 0.14	10.05	38.86	25.00	25.26
Brent Oil ($)	61.09	0.88	9.11	44.08	37.59	12.15
Rand/USD	14.73	- 0.08	5.56	5.91	15.16	0.40
Rand/GBP	20.39	- 0.25	3.26	0.67	10.24	- 6.43
Rand/EUR	17.85	- 0.03	5.70	3.35	13.25	- 10.64
ALBI (R)	776.98	0.17	2.58	4.28	9.81	10.04

^{Some data may be delayed, the above table reflects the latest available information
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}

Economic calendar

Local	International
ZA: Manufacturing production DEC	MX: Interest rate decision US: Initial jobless claims 06/FEB

^{Source: Reuters, Business Day, Trading Economics}

PSG Product Matrix

Fund matrix

PSG Wealth Solutions
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Enhanced Interest FoF D	2.12	5.32	6.59	7.04	7.30	7.47
PSG Wealth Income FoF D	4.36	5.86	6.83	7.18	7.38	7.77
PSG Wealth Preserver FoF D	7.16	7.00	7.36	6.57	6.35	6.50
PSG Wealth Moderate FoF D	11.45	9.60	9.24	6.79	6.54	6.99
PSG Wealth Creator FoF D	19.28	16.32	12.07	7.46	6.93	8.71
PSG Wealth Global Preserver FF D	- 9.00	4.38	11.22	-	-	-
PSG Wealth Global Moderate FF D	- 4.67	10.48	16.30	13.96	10.28	6.80
PSG Wealth Global Flexible FF D	- 3.26	17.46	21.12	-	-	-
PSG Wealth Global Creator FF D	- 0.73	18.03	25.93	21.80	18.35	13.88
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	13.07	12.29	11.87	6.98	7.55	8.89
PSG Wealth Global Creator FoF D USD	17.85	19.96	21.69	14.96	15.49	16.23
PSG Wealth Global Preserver FoF (USD) D	7.32	4.81	6.27	4.66	4.53	6.13
PSG Wealth Global Flexible FoF (USD) D	14.76	19.21	17.23	12.80	13.07	13.88
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	2.71	- 0.89	3.29	4.19	2.62	6.60
PSG Wealth Global Flexible FoF (GBP) D	8.83	12.01	13.90	12.37	10.14	14.33
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	1.73	4.65	5.92	6.38	6.67	6.82
PSG Income A	3.84	9.39	8.70	8.50	8.56	8.56
PSG Diversified Income	6.17	9.07	7.92	7.58	7.78	7.95
PSG Stable A	14.10	5.79	3.47	3.50	4.45	5.76
PSG Balanced A	24.30	9.67	2.69	1.75	2.90	5.58
PSG Flexible A	25.73	6.48	1.16	0.87	1.86	5.60
PSG SA Equity D	29.72	7.69	- 6.30	- 7.09	-	-
PSG Equity A	28.41	8.21	- 0.96	- 1.91	- 0.56	5.42
PSG Global Flexible FF A	11.04	13.58	9.91	9.01	6.33	-
PSG Global Equity FF A	15.28	9.07	7.06	7.04	5.39	6.87
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	32.39	16.67	5.84	2.20	3.88	9.41
PSG Global Equity USD	36.74	13.65	3.85	0.83	3.30	9.66

^{The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
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}

Equity portfolio matrix

PSG Wealth House View Portfolios
Portfolio	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth SA Equity Portfolio	14.09	3.49	1.04	- 1.20	1.08	4.18
PSG Wealth SA Property Equity Portfolio	14.20	- 29.23	- 22.70	- 17.18	- 12.73	- 9.85
PSG Wealth Dividend Income Equity Portfolio	15.73	- 5.85	- 6.05	- 6.68	- 1.17	-
PSG Wealth Offshore Equity Portfolio (USD)	15.96	15.32	20.11	14.94	17.40	17.45

^{The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers}

Recent Investment Ideas

Highlights

Coronation has a decent record of growing assets under management (AUM) over the past 17 years; however, AUM growth has been subdued over the past seven years, with funds up only 1.14% since September 2014.
This shows that the group has been heavily impacted by the subdued local economic environment, which has translated into share price underperformance relative to the benchmark over the past five years (Coronation down 7.7% versus Capped SWIX up 11.1%).
Based on the valuations and investment performance, we feel that the share is fairly valued and recommend a neutral exposure to Coronation.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

The counter does not share the high compounding and growth characteristics that we prefer for select portfolios.
It seems attractively priced on a forward P:E of 4.0 times, a 37.6% discount to its historical average, and a 69.9% discount to its peers compared with its 55% historical discount.
We will continue to monitor the market with the intension to exit the position at a price closer to fair value.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

The company estimates that it needs only around 40% of its non-risk-adjusted projected pipeline revenue to accomplish its 6% annual growth objective, which provides some comfort even if there are clinical trial setbacks. However, with another major patent expiration cycle around FY25, we see Pfizer's share upside tied to pipeline success.
Several early trials will guide to the extent to which it needs to replenish its pipeline with mergers and acquisitions.
On a forward P:E basis, the share now trades at 15.1 times, a 13.3% premium to its historical average, and a 16.9% premium to its FactSet peers.
At current prices, we feel the share is fairly valued.
For more information about this counter, please contact your PSG Wealth adviser.

Corporate actions

Date	Company	Share code	Expectation
17 February 2021	FirstRand Limited Non-Cumulative Non-Redeemable B Preference Shares	FSRP	Cash Dividend
17 February 2021	Hudaco Industries Limited	HDC	Cash Dividend
17 February 2021	Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP3	Cash Dividend
17 February 2021	Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP6	Cash Dividend
17 February 2021	Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP7	Cash Dividend
17 February 2021	Mix Telematics Limited	MIX	Cash Dividend
17 February 2021	Octodec Investments Limited (REIT)	OCT	Cash Dividend

^{The information above is to the best of our knowledge correct at the time of distribution but due to the nature thereof cannot be guaranteed.
This document only contains general information and not the opinion of the distributor.}

JSE closed higher ahead of SONA

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11 February 2021