Introduction - Angles & Perspectives Q2 2025

Introduction - Angles & Perspectives Q2 2025

Uncertainty seems to have become a permanent feature of markets, and these days even geopolitical relationships. This leaves investors in a state of permanent anxiety, constantly anticipating the next surprise. On the one hand, there is the temptation to react to every news headline, which might well be paused (or reversed) tomorrow. This can be exhausting but also self-defeating, given the fleeting nature of many developments. On the other hand, waiting for certainty before acting can easily become paralysing.

At PSG Asset Management, we find remaining focused on patiently applying our 3M investment process positions us well to help our clients navigate the challenges the environment presents. It helps us look beyond the short-term noise in a disciplined manner, to identify the opportunities in the midst of change, and remain focused on achieving the long-run outcomes our clients need to achieve. In this edition, we share some practical examples of how we approach markets, and how our thinking leads us to construct resilient portfolios that are always well positioned to navigate the environment as it unfolds.

In the first article, Fund Manager Felicia Makondo analyses the motivation behind a renewed focus on the South African Reserve Bank’s inflation target. She highlights the potential benefits of such a change, but also points to pitfalls if it is not executed in a well-thought-through manner. Read Navigating a 3% inflation target: what it means for South African markets for deeper insights into our thinking.

Next, in Finding hidden gems when stalwarts fall from grace, Head of Research Kevin Cousins points out that there are relatively few opportunities to buy these high-quality companies at attractive valuations. On occasion, however, the market might consider them to have lost their stalwart status. Where this is due to temporary factors, it can present an excellent opportunity to buy into these gems at attractive valuations.

Finally, analyst Gavin Rabbolini argues that supply-side dynamics are often overlooked in favour of more near-term (and visible) demand-side drivers. We believe a thorough understanding of the capital cycle supply side can provide many advantages when it comes to delivering long-term returns for our investors, and PGMs are no exception. In Platinum group metals’ supply-side revenge, Gavin shares how our analysis led us to finding the certainty to invest in what can be a volatile sector.

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