Daily Investment Update

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The Stoxx 50 climbed 0.50% by the close of trading after oscillating between gains and losses, driven by tariff relief following remarks from US Commerce Secretary Howard Lutnick. On Thursday, Lutnick suggested that one-month exemptions could extend beyond automakers. Additionally, the Trump administration is reportedly considering exempting specific agricultural products from tariffs on Mexico and Canada. Meanwhile, the European Central Bank proceeded with an anticipated interest rate cut but took a more cautious approach regarding future adjustments while raising its short-term inflation forecasts.

The Hang Seng jumped 3.30%, marking its third consecutive gain and reaching its highest level in over three years. A broad market rally followed positive policy signals from China’s annual parliamentary meeting. The tech sector surged 5.40%, led by an 8.50% jump in Alibaba Group, which has gained 46% since its 2025 low on 13 January, driven by optimism over its AI initiatives. Consumer, property, and financial stocks also saw strong gains, as traders bet that the latest US tariff hikes under President Trump would not dampen market sentiment, especially given Beijing’s 2025 fiscal stimulus. Meanwhile, the Nikkei advanced 0.77% on Thursday, recording its second straight session of gains.

Brent crude oil futures hovered around $69 per barrel on Thursday after hitting a multi-year low of $68.34 in the previous session. Prices remained under pressure amid persistent trade tensions, with the US imposing tariffs on Canadian and Mexican goods, including energy imports, while OPEC+ considered increasing output. There were also reports that the U.S. might exempt automakers from the 25% tariff and potentially remove the 10% tariff on Canadian energy imports such as crude oil and gasoline.

US stocks declined as concerns over escalating trade conflicts under the new administration and economic policy uncertainty weighed on sentiment. The S&P 500 dropped nearly 2%, while the Nasdaq plunged 2.30%, both reaching four-month lows, and the Dow tumbled 500 points. President Trump confirmed that goods covered under the USMCA would be exempt from tariffs on Mexico shortly after imposing broad levies on North American trade partners. However, restrictions on China and Canada remained in place amid ongoing policy uncertainty. These developments compounded fears over economic growth, especially after weak labour market data showed Challenger job cuts reaching a 2020 high and the ADP employment report missing expectations.

On the local front, the stock market maintained its positive momentum, gaining 0.62%, while the rand strengthened to R18.15/$ by 18h00 local time. South Africa’s current account deficit narrowed to R31.6 billion in 4Q24, down from a revised R55.6 billion in the prior quarter, though it exceeded market forecasts of a R3 billion shortfall. This marked the smallest current account gap since 3Q23, supported by a wider trade surplus of R232.9 billion in the final quarter.

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ALBI (R) 1255.64 -0.19 Brent Oil ($) 69.31 2.48 Gold ($) 3752.40 -0.42 Platinum ($) 1505.00 2.03 Rand/EUR 20.28 0.47 Rand/GBP 23.24 0.29 Rand/USD 17.29 0.92

Market indicators

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Date Index Current Level 1 Day Move 1 Month Move 6 Month Move 1 Year Move
2025-09-29 ALSI 105803.18 -0.83 3.35 20.61 27.23
2025-09-29 Basic minerals 74731.54 -1.08 20.02 57.91 80.52
2025-09-29 Fin + Ind 30 12875.19 -0.73 -2.13 10.10 13.85
2025-09-29 Financial 53964.08 -1.79 -2.59 6.18 4.87
2025-09-29 Industrial index 147332.18 0.01 -1.89 12.12 20.73

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 nameDate as ofNAV (Rands)Performance - As at 2025/08/31
1 year %3 year %5 year %Inception %
South African - Multi Asset - Low Equity PSG Investment Management Cautious Fund of Funds  Class D2025/08/31 1.52 14.52 12.46 13.53 11.51
PSG Stable Fund Class A2025/08/31 1.88 13.05 12.20 12.89 8.92
PSG Stable Fund Class E2025/08/31 1.89 13.69 12.84 13.54 8.85
PSG Wealth Preserver Fund of Funds Class D2025/08/31 28.05 14.19 12.31 10.88 9.50
South African - Multi Asset - High Equity PSG Balanced Fund Class A2025/08/31 114.58 17.04 16.57 18.92 13.04
PSG Balanced Fund Class E2025/08/31 114.65 17.71 17.24 19.60 10.75
PSG Investment Management Growth Fund of Funds  Class D2025/08/31 1.95 19.26 15.86 18.34 14.51
PSG Wealth Moderate Fund of Funds Class D2025/08/31 50.10 18.83 14.87 13.76 11.29
South African - Multi Asset - Income PSG Diversified Income Fund Class A2025/08/31 1.39 11.02 10.29 9.48 8.15
PSG Diversified Income Fund Class E2025/08/31 1.39 11.73 10.98 10.10 8.82
PSG Investment Management Multi-Asset Income Fund  of Funds Class D2025/08/31 1.19 10.50 9.54 8.86 8.54
PSG Wealth Income Fund of Funds Class D2025/08/31 12.85 9.67 9.68 8.41 8.08
South African - Equity - General PSG Equity Fund Class A2025/08/31 21.15 18.96 18.34 21.77 13.18
PSG Equity Fund Class E2025/08/31 21.20 19.77 17.90 21.60 10.14
PSG Equity Fund Class F2025/08/31 21.21 19.50 18.89 22.31 11.03
PSG Investment Management Opportunity Equity Fund of Funds Class D2025/08/31 1.43 22.87 20.50
PSG Wealth Creator Fund of Funds Class D2025/08/31 68.96 22.28 16.36 17.06 12.77
South African - Equity - SA General PSG SA Equity Class F2025/08/31 2.12 23.38 19.70 24.51 9.50
South African - Interest Bearing - SA Money Market PSG Money Market Fund Class A2025/08/31 1.00 7.58 7.75 6.19 7.94
PSG Money Market Fund Class F2025/08/31 1.00 7.89 8.06 6.47 5.61
South African - Interest Bearing - Short Term PSG Income Fund Class A2025/08/31 1.12 9.50 8.65 7.47 7.37
PSG Income Fund Class E2025/08/31 1.10 9.82 8.96 7.78 8.04
PSG Wealth Enhanced Interest Fund of Funds Class D2025/08/31 1.02 8.42 8.51 6.90 6.91
South African - Interest Bearing - Variable Term PSG Bond Fund Class A2025/08/31 1.06 9.89
South African - Multi Asset - Flexible PSG Flexible Fund Class A2025/08/31 9.78 16.32 16.17 19.76 11.56
PSG Flexible Fund Class E2025/08/31 9.78 16.63 16.47 20.07 10.96

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 nameDate as ofNAV (Rands)Performance - As at 2025/08/31
1 year %3 year %5 year %Inception %
Global - Equity - General PSG Global Equity Feeder Fund Class A2025/08/31 5.57 18.41 16.55 17.83 12.61
PSG Global Equity Feeder Fund Class E2025/08/31 5.80 19.09 17.22 18.39 12.35
PSG Wealth Global Creator Feeder Fund Class D2025/08/31 5.10 11.40 15.90 10.17 14.53
Global - Multi Asset - Flexible PSG Global Flexible Feeder Fund Class A2025/08/31 4.21 15.82 14.89 14.93 12.20
PSG Global Flexible Feeder Fund Class B2025/08/31 4.46 16.49 15.55 15.48 12.71
PSG Wealth Global Flexible Feeder Fund Class D2025/08/31 5.21 10.51 10.18 5.93 10.73
PSG Wealth Global Moderate Feeder Fund Class D2025/08/31 5.37 9.51 10.83 6.84 11.97
Global - Multi Asset - Low Equity PSG Wealth Global Preserver Feeder Fund Class D2025/08/31 1.60 6.77 7.95 4.79 6.51

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 nameDate as ofNAV (Rands)Performance - As at 2025/08/31
1 year %3 year %5 year %Inception %
EAA Fund GBP Cautious Allocation PSG Wealth Global Preserver FoF (GBP) Class D2025/08/31 2.16 3.30 1.98 2.81 4.76
EAA Fund GBP Flexible Allocation PSG Wealth Global Flexible FoF (GBP) Class D2025/08/31 4.13 7.25 4.59 4.78 9.05
EAA Fund Global Flex-Cap Equity PSG Global Equity Sub-Fund Class A2025/08/31 2.73 19.41 15.86 16.80 6.66
PSG Global Equity Sub-Fund Class B2025/08/31 2.85 20.01 16.50 17.43 8.65
EAA Fund Global Large-Cap Blend Equity PSG Wealth Global Creator Fund of Funds Class D2025/08/31 3.38 10.29 14.58 8.79 9.92
EAA Fund USD Cautious Allocation PSG Wealth Global Preserver FoF (USD) Class D2025/08/31 1.86 6.66 6.67 3.54 3.86
EAA Fund USD Flexible Allocation PSG Global Flexible Sub-Fund Class A2025/08/31 23.09 16.79 14.23 14.17 6.61
PSG Global Flexible Sub-Fund Class B2025/08/31 24.62 17.32 14.75 14.67 7.24
PSG Investment Management Global Flexible Fund of Funds (Dollar)2025/08/31 1.80 9.72 7.41 3.09 3.13
PSG Wealth Global Flexible FoF (USD) Class D2025/08/31 3.52 9.89 8.80 4.66 8.05
EAA Fund USD Moderate Allocation PSG Wealth Global Moderate Fund of Funds Class D2025/08/31 2.34 8.70 9.39 5.49 5.71

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 2025/09/12
1 year %3 year %5 year %Inception %
PSG Wealth Income Growth Equity Portfolio 12.66 12.29 12.75 4.35
PSG Wealth Offshore Equity Portfolio (USD) 14.39 11.37 9.96 11.56
PSG Wealth SA Equity Portfolio 28.08 12.95 12.69 6.50
PSG Wealth SA Property Equity Portfolio 15.16 20.52 22.04 1.27

* 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

Microsoft Corporation

  • Analyst thesis Our recommendation is based on:
    • Microsoft Azure is benefiting from the rapid adoption of multi-cloud strategies, while Azure Local (formerly Azure Stack HCI), and Azure Arc strengthen Microsoft’s hybrid control plane across on-premises and cloud environments.
    • Microsoft’s broad product range drives a strong subscription model with annuity-type revenue and customer loyalty supported by a strong moat (high switching costs, innovation, scale, network effect, and brand). This is evident in the high and stable margins it achieves over the long term.
    • While Microsoft shares trade at a premium relative to peers, this valuation is supported by its superior organic revenue growth, strong free cash flow generation, and a leading cloud platform.
    • Microsoft is well placed to significantly benefit from AI.

Reinet Investments

  • Latest company and market insights: Key highlights In this report, we review the latest management statement released for the first quarter that ended 30 June 2025.
  • Financial results at a glance: 
    • Net asset value (NAV) as of 30 June 2025: €6.6 billion, reflecting a compound growth rate of 8.6% per annum in euro terms since March 2009, inclusive of dividends paid. This is higher than the 5.2% average rate of South Africa inflation over the same period, positioning RNI as a long-term, inflation-beating investment and also being a Rand hedge.
    • Quarter-on-quarter change: NAV decreased by 4.6% due to declines in the estimated fair value of larger investments and currency weakness in sterling and the US dollar, reducing the euro value of certain assets and liabilities.
    • NAV per Share: €36.30 as of 30 June 2025, a 24% discount (previous: €38.04 as at 31 March 2025, a discount of 40%).
    • Listed investments: €121 million, making up 1.8% of NAV.
    • Unlisted investments: €4 682 million, not considering the PICG transaction, making up 70% of NAV, with €3 432 million (52%) in PICG. Note: The unlisted section will appear materially different once the PICG transaction is completed, as the cash received will be transferred from unlisted investments to liquid cash holdings.
    • Cash and liquid funds: €1 941 million, making up 29% of NAV, up from €1 819 million as at 31 March 2025.
    • Investment activity: €293 million committed to new/existing investments in the quarter, with €21 million funded.
    • Post 30 June 2025 highlights: Agreement reached to sell 100% holding in Pension Insurance Corporation Group Limited to Athora Holding Ltd, expected to close in early 2026.

Mr Price Group Limited

  • In this report, we revisit MRP’s voluntary trading update for 1Q26 (13 weeks ended June 2025), released in July 2025, and assess its implications for our current view. Financial results at a glance:
    • During 1Q26, group retail sales were up 6.3% with LFL sales growth up 3% and market share gains of 10 bps were recorded during the period (Retail Liaison Committee; MRP SENS), confirming our outlook of continued long-term growth.
    • Examining recent retail sales growth in detail, we consider the current sentiment to be overly pessimistic at this stage. Sales rose by 11.3% and 11.9% in April and May 2025, respectively, with a 20 bps market share gain. While retail sales in June 2025 saw a 5.1% decline against a strong 12.7% growth in the prior year, this may be influenced by seasonality factors like school holidays and base effects, representing just a single month’s data. As such, the market may be placing disproportionate emphasis on this one data point.
    • South African retail sales were up 6% with LFL sales up 2.6% in 1Q26. Non-South African sales were up 10.4%.
    • Group retail selling price inflation was up 3.1%, which we believe to be supportive and low enough.
    Cash sales (87.5% of sales) were up 6.3%, with credit sales up 6.1%.
    • Apparel, homeware, and telecoms segments were up 6%, 6.4% and 12.7% respectively in 1Q26.

Corporate Actions

Date Company Share code Expectation
01 October 2025 Aspen Pharmacare Holdings LimitedAPN

     Cash Dividend

01 October 2025 African Rainbow Minerals Limited ARI

Cash Dividend

01 October 2025 British American Tobacco Plc BTI

Cash Dividend

01 October 2025 City Lodge Hotels Limited CLH

Cash Dividend

01 October 2025 Exxaro Resources Limited EXX

Cash Dividend

01 October 2025 Motus Holdings Limited MTH

Cash Dividend

01 October 2025 Old Mutual Limited OMU

Cash Dividend

01 October 2025 Putprop Limited PPR

Cash Dividend

01 October 2025 Schroder European Real Estate Investment Trust PLC SCD

Cash Dividend

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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