Daily Investment Update

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US stocks ended higher on Thursday, with the S&P 500 hitting fresh record highs above 6 500, the Nasdaq 100 up 0.60%, and the Dow gaining 72 points. Strong economic data and ongoing enthusiasm for artificial intelligence underpinned sentiment, with Nvidia in focus after reporting a 56% surge in quarterly revenue that slightly topped expectations. The company struck a more cautious note on future demand by excluding potential China sales from its outlook, but analysts largely maintained confidence in AI-driven growth, with several raising price targets. The broader tech sector showed strength, with Broadcom, Micron, Microsoft, Meta, and Amazon all advancing. Meanwhile, recent estimates put US GDP growth at 3.30% in the second quarter, while jobless claims came in lower than expected, easing recession concerns.

European stocks ended mixed on Thursday as investors weighed US tech earnings and the outlook for global interest rates. The Eurozone’s STOXX 50 edged above the flatline to close at 5 393 points, while the pan-European STOXX 600 slipped 0.20% to 554. Nvidia’s better-than-expected results reinforced optimism around AI, though its cautious guidance reminded investors that growth could moderate from recent peaks.

On the monetary policy front, the European Central Bank’s July meeting minutes revealed a divided stance on inflation. Some policymakers argued that risks were tilted to the downside over the next two years, citing weaker growth prospects and the impact of US tariffs, while others warned that risks could still skew higher in the longer term, given uncertainty around energy prices and currency moves. Although inflation is currently at target, officials noted that this was partly due to temporary factors that could reverse, keeping the debate alive over whether the ECB should prioritise caution or vigilance. The central bank left rates unchanged in July, effectively drawing a line under its latest easing cycle after eight cuts over the past year, which pushed borrowing costs to their lowest levels since November 2022. The main refinancing rate remains at 2.15%, while the deposit facility rate holds at 2%.

Chinese equities extended their rally, lifted by easing US–China trade tensions, expectations of fresh stimulus, and supportive flows from retail investors and margin buying. Gains were broad-based, with artificial intelligence and semiconductor stocks leading the advance as renewed investor interest outweighed concerns about weak fundamentals. The momentum pushed the Shanghai Composite up 1.14% to 3 844 points and the Shenzhen Component 2.25% higher to 12 571, leaving both benchmarks on track for solid monthly gains.

The offshore yuan also strengthened for a fifth straight session, reaching its strongest level since November 2024. The move was underpinned by a firm central bank fixing - its strongest in nearly a year and well above market estimates. A softer US dollar added to the yuan’s strength, as traders increased bets on Federal Reserve rate cuts, with markets now pricing in an 89% chance of a 25-basis-point reduction in September, up from 82% a week earlier. Looking ahead, investors are awaiting PMI data due over the weekend for clearer signals on China’s economic outlook amid lingering uncertainty around trade relations with the US.

South African markets finished Thursday on a cautious note, with the FTSE/SE All Share Index edging down 0.14% to 101 859 points and the Top 40 Index slipping 0.13% as investors digested domestic economic data and earnings updates. The rand held steady at 17.66 against the US dollar following the release of domestic producer inflation figures. Stats SA reported that producer inflation rose to 1.50% year-on-year in July 2025, up from 0.60% in June, slightly above expectations, while the Producer Price Index climbed 0.70% month-on-month. Investors are now focused on upcoming economic indicators, including money supply, private sector credit, trade balance, and the budget balance, for clearer signals on the health of South Africa’s economy.

In commodities, gold surged to a five-week high, closing at $3 452.60 per ounce, up 1.40% from the previous session, supported by a softer US dollar and renewed investor concerns over Federal Reserve independence, which boosted demand for safe-haven assets. Oil prices also gained, with Brent crude rising 0.80% to trade at $68.62 per barrel and US West Texas Intermediate (WTI) up 0.70% to trade at $64.60, following reports of declining US crude inventories and heightened geopolitical tensions after President Trump criticised recent Russian missile attacks on Ukraine, stoking concerns over potential sanctions.

Navigation

ALBI (R) 1215.98 0.04 Brent Oil ($) 68.24 -0.55 Gold ($) 3407.82 -0.27 Platinum ($) 1352.37 -0.82 Rand/EUR 20.66 -0.42 Rand/GBP 23.91 -0.17 Rand/USD 17.72 -0.25

Market indicators

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Date Index Current Level 1 Day Move 1 Month Move 6 Month Move 1 Year Move
2025-08-29 ALSI 101858.90 -0.14 3.37 20.81 25.44
2025-08-29 Basic minerals 61602.04 -1.32 6.30 51.13 50.89
2025-08-29 Fin + Ind 30 13115.91 0.26 2.37 13.51 19.05
2025-08-29 Financial 54348.17 0.78 3.89 12.26 11.29
2025-08-29 Industrial index 148525.56 -0.13 1.18 14.01 24.82

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.

Morningstar CategoryFund nameNAV (Rands)
at 28 Aug 2025
Performance –As at 2025/07/31
1 year %3 year %5 year %Inception %
South African - Multi Asset - Low Equity PSG Investment Management Cautious Fund of Funds  Class D 1.53 15.40 12.55 13.88 11.55
PSG Stable Fund Class A 1.88 13.46 12.12 13.43 8.91
PSG Stable Fund Class E 1.88 14.11 12.77 14.08 8.84
PSG Wealth Preserver Fund of Funds Class D 28.40 14.60 12.16 11.00 9.49
South African - Multi Asset - High Equity PSG Balanced Fund Class A 116.73 17.94 16.88 20.03 13.08
PSG Balanced Fund Class E 117.08 18.61 17.56 20.72 10.82
PSG Investment Management Growth Fund of Funds  Class D 1.93 20.81 16.00 18.99 14.60
PSG Wealth Moderate Fund of Funds Class D 49.60 18.74 14.61 13.95 11.29
South African - Multi Asset - Income PSG Diversified Income Fund Class A 1.40 11.61 10.20 9.48 8.14
PSG Diversified Income Fund Class E 1.40 12.32 10.90 10.10 8.80
PSG Investment Management Multi-Asset Income Fund  of Funds Class D 1.20 10.92 9.55 8.93 8.53
PSG Wealth Income Fund of Funds Class D 12.95 10.17 9.63 8.42 8.07
South African - Equity - General PSG Equity Fund Class A 20.68 18.12 18.43 22.64 13.18
PSG Equity Fund Class E 20.80 18.73 17.93 22.46 10.12
PSG Equity Fund Class F 20.78 18.66 18.97 23.18 11.02
PSG Investment Management Opportunity Equity Fund of Funds Class D 1.39
PSG Wealth Creator Fund of Funds Class D 67.09 20.94 15.46 16.90 12.70
South African - Equity - SA General PSG SA Equity Class F 2.13 25.38 19.74 25.25 9.51
South African - Interest Bearing - SA Money Market PSG Money Market Fund Class A 1.00 7.68 7.70 6.14 7.94
PSG Money Market Fund Class F 1.00 7.99 8.01 6.42 5.59
South African - Interest Bearing - Short Term PSG Income Fund Class A 1.11 9.71 8.67 7.47 7.36
PSG Income Fund Class E 1.11 10.03 8.98 7.78 8.03
PSG Wealth Enhanced Interest Fund of Funds Class D 1.02 8.53 8.48 6.85 6.91
South African - Interest Bearing - Variable Term PSG Bond Fund Class A 1.07
South African - Multi Asset - Flexible PSG Flexible Fund Class A 9.63 15.72 16.42 20.65 11.57
PSG Flexible Fund Class E 9.64 16.03 16.73 20.96 10.97

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.

Global funds

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:

Morningstar CategoryFund nameNAV (Rands)
at 29 Aug 2025
Performance –As at 2025/07/31
1 year %3 year %5 year %Inception %
Global - Equity - General PSG Global Equity Feeder Fund Class A 5.48 15.19 16.87 19.25 12.67
PSG Global Equity Feeder Fund Class E 5.71 15.85 17.55 19.78 12.42
PSG Wealth Global Creator Feeder Fund Class D 5.16 12.38 16.92 11.43 14.72
Global - Multi Asset - Flexible PSG Global Flexible Feeder Fund Class A 4.16 13.23 15.13 16.20 12.28
PSG Global Flexible Feeder Fund Class B 4.41 13.89 15.79 16.71 12.80
PSG Wealth Global Flexible Feeder Fund Class D 5.28 10.48 11.02 6.69 10.90
PSG Wealth Global Moderate Feeder Fund Class D 5.42 10.25 11.81 7.50 12.12
Global - Multi Asset - Low Equity PSG Wealth Global Preserver Feeder Fund Class D 1.62 6.35 9.34 5.07 6.75

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.

Invest in other currencies

The following funds invest internationally using foreign currency

Morningstar CategoryFund nameNAV (Rands)
at 28 Aug 2025
Performance –As at 2025/07/31
1 year %3 year %5 year %Inception %
EAA Fund GBP Cautious Allocation PSG Wealth Global Preserver FoF (GBP) Class D 2.12 3.21 3.01 2.98 4.84
EAA Fund GBP Flexible Allocation PSG Wealth Global Flexible FoF (GBP) Class D 4.07 7.31 5.08 5.31 9.12
EAA Fund Global Flex-Cap Equity PSG Global Equity Sub-Fund Class A 2.65 12.37 12.54 17.71 6.37
PSG Global Equity Sub-Fund Class B 2.75 12.94 13.17 18.33 8.03
EAA Fund Global Large-Cap Blend Equity PSG Wealth Global Creator Fund of Funds Class D 3.36 11.33 12.65 9.67 9.84
EAA Fund USD Cautious Allocation PSG Wealth Global Preserver FoF (USD) Class D 1.85 6.57 5.76 3.54 3.81
EAA Fund USD Flexible Allocation PSG Global Flexible Sub-Fund Class A 22.46 10.91 11.00 15.00 6.29
PSG Global Flexible Sub-Fund Class B 23.95 11.41 11.51 15.45 6.91
PSG Investment Management Global Flexible Fund of Funds (Dollar) 1.79 9.08 5.83 3.45 3.05
PSG Wealth Global Flexible FoF (USD) Class D 3.51 9.95 7.25 5.17 8.00
EAA Fund USD Moderate Allocation PSG Wealth Global Moderate Fund of Funds Class D 2.32 9.30 7.82 5.82 5.62

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.

House view equity portfolios

Fund display name Performance –As at 2025/08/28
1 year %3 year %5 year %Inception %
PSG Wealth Income Growth Equity Portfolio 9.49 11.54 12.26 4.34
PSG Wealth Offshore Equity Portfolio (USD) 11.11 11.16 9.07 11.55
PSG Wealth SA Equity Portfolio 21.22 11.32 11.51 6.20
PSG Wealth SA Property Equity Portfolio 19.77 20.06 20.52 1.26

* 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.

Recent investment ideas

Harmony Gold

  • In this report, we review Harmony Gold’s most recent released statement on production, grade, and cost guidance for FY25. The information includes: Harmony Gold expects to meet FY25 guidance on production, grade, and costs. FY25 production expected between 1 400 000 and 1 500 000 ounces (in line with guidance). All-in-sustaining costs (AISC) to fall within R1 020 000/kg to R1 100 000/kg guidance range. Underground recovered grades will surpass guided 6g/t. Total capital expenditure will be slightly below the R10.8 billion guidance. Highlights for FY25 include:
    • Achieving or beating all guidance metrics for the 10th consecutive year.
    • Record interim dividend of R1.4 billion.
    • Potential acquisition of MAC Copper in Australia, which would add over 40 000 tonnes of annual copper production (pending conclusion in H2 2025).
    • On-time and on-budget completion of Mine Waste Solutions extension project (Phase 1).
    • MSCI ESG rating upgraded to BB (from B) in June 2025 due to sustainable mining practices.

Renergen Limited

  • This report provides a summary of the Renergen and ASPI offer, along with the latest developments related to it. ASPI has made a firm offer to buy all shares of Renergen. This offer is planned to happen through a formal arrangement between Renergen and its shareholders. If this arrangement does not go through, there is a backup “standby offer” that can be used instead. A detailed document explaining the offer and setting out the meeting details was sent to all Renergen shareholders listed as of 30 May 2025. This document explains how the offer will work and what conditions need to be met for it to proceed. If the main arrangement is successful: 
    •    Shareholders will receive new shares from ASPI according to a set exchange rate. 
    •    ASPI will take full ownership of Renergen 
    •    Renergen Shares will be delisted from the JSE, A2X and ASX. 
    If the arrangement fails because certain conditions are not met, the standby offer will open. This backup offer will have the same terms as the original one and shareholders will be informed when it becomes available. Our research supports a sell recommendation.

South Africa’s largest retailer, Shoprite, remains a market leader with ongoing growth and expansion

  • At current levels, the stock trades below historical price multiples and presents an upside to our intrinsic value. Shoprite is a high-quality SA retailer as evidenced by:
    • Internal price inflation for the period averaged just 1.9%. This reflects Shoprite’s commitment to affordability and its ability to pass on cost savings to consumers, which should help with future volume growth.
    • Shoprite’s consistent margin expansion, driven by pricing power and operational efficiency, underscores its ability to preserve profitability while maintaining affordability, solidifying its value-driven market leadership.
    • Successful platforms like Sixty60 and Xtra Savings have boosted transaction values and customer loyalty, reinforcing margin resilience and evidencing management’s innovation.
    • The group’s consistent rollout of new stores across various formats, without compromising operational efficiency or margin integrity, reinforces its ability to capture market share, drive top-line growth, and deliver long-term shareholder value.
    • South Africa’s recent shift to lower interest rates and a subdued inflation environment creates a supportive backdrop for consumer-focused businesses like Shoprite.
    Our research supports a buy recommendation

Corporate Actions

Date Company Share code Expectation

The information above is to the best of our knowledge correct.
The Corporate Actions are updated weekly.

Fund performance

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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