Introduction - Angles & Perspectives Q3 2025

Introduction - Angles & Perspectives Q3 2025

Investors have experienced an extraordinary time in markets, with indices surging ahead even as concentration levels continue to climb. This dynamic holds a number of challenges for investors, who may inadvertently be taking on more risk than they are aware of. At PSG Asset Management, our focus as always remains on patiently applying our 3M investment process, grounded in our in-depth and independent research. This process leads us to seek out underappreciated, quality assets trading at a discount to inherent value – which is most often found outside the popular and crowded areas of the market. We believe this approach offers enormous value to our clients, and helps us to construct robust portfolios that are well positioned to continue rewarding our clients as market conditions change.

In the first article, The hidden risks of hugging an index, Head of Research Kevin Cousins highlights the assumptions that underpin indexation and passive investments, and details the crucial role that active managers have to play in the market’s price discovery function. When markets become highly concentrated, deviation amplification becomes more prevalent and extended, with important implications for investors.

Next, in Can equity markets continue their strong run? Fund Managers Shaun le Roux and Mikhail Motala argue that equities will have a crucial role to play in portfolios going forward, but that not all equities are equally well positioned to continue rewarding investors in the future. Owning the right equities will be key. Investors need to look outside the popular areas of the market, with local equities specifically poised to offer some attractive opportunities.

Finally, Fund Manager Philipp Wӧrz and Deputy Chief Investment Officer Greg Hopkins highlight the advantages of owning a differentiated portfolio in a sea of similarity. In Opportunities unseen: finding what others have missed they share more details on where they are finding investments that are not only reasonably priced, but are also in a good position to continue growing into the future.

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