Daily Investment Update

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US stocks edged higher on Wednesday following the release of the latest FOMC meeting minutes, as investors evaluated the potential impact of new tariffs. Both the S&P 500 and Nasdaq gained 0.30%, reaching record closing levels, while the Dow turned positive after earlier losses. The minutes revealed a readiness to keep interest rates steady for an extended period due to persistent inflation and uncertainties in US economic policy. However, equities found support from comments suggesting it may be appropriate to pause the balance sheet runoff amid concerns over the debt ceiling. Meanwhile, President Donald Trump proposed 25% tariffs on automobiles, semiconductors, and pharmaceutical products, but the muted market reaction suggested investors had become desensitised to repeated tariff threats with limited enforcement.

European stocks experienced a sharp decline on Wednesday, retreating from record highs reached the day before. The drop was driven by disappointing corporate earnings and concerns over potential trade barriers, as investors also evaluated the possibility of increased issuance of joint European bonds. The Eurozone’s STOXX 600 dropped 1.40% to finish at 5 458 points, while the broader pan-European STOXX 600 fell 1% to close at 552.

Asian markets displayed mixed performance on Wednesday, reflecting the volatility of Wall Street trading and declines in European markets. Investor confidence remained subdued due to concerns over US President Donald Trump’s proposed tariffs and cautious signals from Federal Reserve policymakers. Amid this uncertainty, Chinese stocks bucked the trend, with the Shanghai Composite rising 0.81% to close at 3 352 points and the Shenzhen Component climbing 1.46% to end at 10 772. This rebound, following losses in the previous session, was fuelled by renewed optimism after President Xi Jinping's rare meeting with business leaders, which many viewed as a potential shift toward easing the years-long regulatory crackdown. Meanwhile, the broader risk-off sentiment lifted gold prices to a record high, while safe-haven currencies, particularly the Japanese yen, gained strength amid heightened geopolitical tensions. 

The postponement of South Africa’s budget speech on Wednesday, stemming from disagreements within the ruling coalition over proposed fiscal measures, led to immediate negative market reactions. The FTSE/JSE All Share Index experienced a near 0.20% decline, reflecting investor concerns about political stability and the government's ability to implement fiscal policies. At the same time, the rand depreciated by about 1% against the US dollar, as investors grew uncertain about the country's economic direction. The postponement, the first of its kind in post-apartheid South Africa, heightened concerns over investor confidence, potentially affecting both the stock market and the broader economic outlook. These developments underscored the market's sensitivity to political gridlock and uncertainty around fiscal policy, casting a shadow over South Africa's short-term financial stability.

In commodities, oil prices inched higher, driven by concerns over potential supply disruptions in the US and Russia, while markets remained focused on developments in the Ukraine peace talks. Brent crude futures rose by 0.20% to trade at $75.98 a barrel, positioning for a possible third consecutive day of gains.

Navigation

ALBI (R) 1416.40 0.24 Brent Oil ($) 71.02 -1.03 Gold ($) 5162.06 1.07 Platinum ($) 2170.02 0.51 Rand/EUR 18.93 0.42 Rand/GBP 21.64 0.42 Rand/USD 16.01 0.96

Market indicators

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Date Index Current Level 1 Day Move 1 Month Move 6 Month Move 1 Year Move
2026-02-23 ALSI 123022.03 0.97 2.10 23.46 43.08
2026-02-23 Basic minerals 99265.57 2.95 0.95 66.97 123.15
2026-02-23 Fin + Ind 30 14051.79 -0.05 2.70 8.97 21.45
2026-02-23 Financial 66253.97 -0.17 7.94 26.49 40.55
2026-02-23 Industrial index 141768.69 0.08 -1.87 -3.88 6.83

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 2026/01/31
1 year %3 year %5 year %Inception %
South African - Multi Asset - Low Equity PSG Investment Management Cautious Fund of Funds  Class D2025/12/31 1.62 18.78 13.52 13.67 12.14
PSG Stable Fund Class A2025/12/31 2.02 19.32 13.19 13.21 9.28
PSG Stable Fund Class E2025/12/31 2.02 20.01 13.84 13.86 9.29
PSG Wealth Preserver Fund of Funds Class D2025/12/31 29.42 16.21 13.28 11.46 9.66
South African - Multi Asset - High Equity PSG Balanced Fund Class A2025/12/31 124.60 22.94 16.10 18.29 13.20
PSG Balanced Fund Class E2025/12/31 124.90 23.65 16.77 18.96 11.17
PSG Investment Management Growth Fund of Funds  Class D2025/12/31 2.16 27.62 17.59 18.59 15.65
PSG Wealth Moderate Fund of Funds Class D2025/12/31 53.00 21.30 15.74 14.04 11.45
South African - Multi Asset - Income PSG Diversified Income Fund Class A2025/12/31 1.43 12.88 11.14 9.83 8.30
PSG Diversified Income Fund Class E2025/12/31 1.42 13.60 11.85 10.48 9.05
PSG Investment Management Multi-Asset Income Fund  of Funds Class D2025/12/31 1.21 11.21 10.01 8.96 8.75
PSG Wealth Income Fund of Funds Class D2025/12/31 13.12 10.88 10.32 8.79 8.21
South African - Equity - General PSG Equity Fund Class A2025/12/31 23.74 35.26 19.63 21.96 13.54
PSG Equity Fund Class E2025/12/31 23.87 36.42 19.39 21.81 11.05
PSG Equity Fund Class F2025/12/31 23.85 35.87 20.18 22.51 11.91
PSG Investment Management Opportunity Equity Fund of Funds Class D2025/12/31 1.64 41.37 25.31
PSG Wealth Creator Fund of Funds Class D2025/12/31 75.75 29.60 17.64 17.24 13.19
South African - Equity - SA General PSG SA Equity Class F2025/12/31 2.47 38.52 22.14 25.05 10.63
South African - Interest Bearing - SA Money Market PSG Money Market Fund Class A2025/12/31 1.00 7.23 7.82 6.43 7.93
PSG Money Market Fund Class F2025/12/31 1.00 7.53 8.13 6.72 5.65
South African - Interest Bearing - Short Term PSG Income Fund Class A2025/12/31 1.13 11.15 9.61 7.96 7.55
PSG Income Fund Class E2025/12/31 1.12 10.62 9.64 8.11 8.17
PSG Wealth Enhanced Interest Fund of Funds Class D2025/12/31 1.02 8.07 8.63 7.15 6.94
South African - Interest Bearing - Variable Term PSG Bond Fund Class A2025/12/31 1.16 25.54 23.18
South African - Multi Asset - Flexible PSG Flexible Fund Class A2025/12/31 10.70 28.42 16.60 19.61 11.83
PSG Flexible Fund Class E2025/12/31 10.71 28.75 16.90 19.91 11.57

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 2026/01/31
1 year %3 year %5 year %Inception %
Global - Equity - General PSG Global Equity Feeder Fund Class A2025/12/31 5.77 27.62 13.33 17.13 12.53
PSG Global Equity Feeder Fund Class E2025/12/31 6.02 28.36 13.99 17.73 12.29
PSG Wealth Global Creator Feeder Fund Class D2025/12/31 5.16 3.60 16.54 10.79 13.99
Global - Multi Asset - Flexible PSG Global Flexible Feeder Fund Class A2025/12/31 4.29 22.14 11.43 14.37 12.00
PSG Global Flexible Feeder Fund Class B2025/12/31 4.55 22.84 12.07 14.95 12.52
PSG Wealth Global Flexible Feeder Fund Class D2025/12/31 5.12 -1.05 9.32 6.12 10.05
PSG Wealth Global Moderate Feeder Fund Class D2025/12/31 5.32 1.24 10.09 7.52 11.48
Global - Multi Asset - Low Equity PSG Wealth Global Preserver Feeder Fund Class D2025/12/31 1.57 -3.34 6.62 5.64 5.72

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 2026/01/31
1 year %3 year %5 year %Inception %
EAA Fund GBP Cautious Allocation PSG Wealth Global Preserver FoF (GBP) Class D2025/12/31 2.21 2.29 4.07 2.81 4.86
EAA Fund GBP Flexible Allocation PSG Wealth Global Flexible FoF (GBP) Class D2025/12/31 4.27 5.99 6.73 4.12 9.04
EAA Fund Global Flex-Cap Equity PSG Global Equity Sub-Fund Class A2025/12/31 3.01 44.38 14.82 14.62 7.16
PSG Global Equity Sub-Fund Class B2025/12/31 3.13 45.11 15.44 15.25 9.64
EAA Fund Global Large-Cap Blend Equity PSG Wealth Global Creator Fund of Funds Class D2025/12/31 3.62 17.49 17.05 7.91 10.08
EAA Fund USD Cautious Allocation PSG Wealth Global Preserver FoF (USD) Class D2025/12/31 1.92 9.96 7.58 3.07 3.96
EAA Fund USD Flexible Allocation PSG Global Flexible Sub-Fund Class A2025/12/31 24.95 38.20 12.90 12.12 7.09
PSG Global Flexible Sub-Fund Class B2025/12/31 26.65 38.83 13.41 12.61 7.73
PSG Investment Management Global Flexible Fund of Funds (Dollar)2025/12/31 1.88 14.07 8.77 2.25 3.23
PSG Wealth Global Flexible FoF (USD) Class D2025/12/31 3.67 12.38 9.93 3.48 8.04
EAA Fund USD Moderate Allocation PSG Wealth Global Moderate Fund of Funds Class D2025/12/31 2.45 14.62 10.88 4.75 5.87

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 2026/02/19
1 year %3 year %5 year %Inception %
PSG Wealth Income Growth Equity Portfolio 34.75 16.44 13.76 6.22
PSG Wealth Offshore Equity Portfolio (USD) 17.19 12.11 8.96 12.05
PSG Wealth SA Equity Portfolio 41.57 15.53 12.72 7.72
PSG Wealth SA Property Equity Portfolio 43.20 26.73 20.73 3.34

* 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

Shoprite Holdings Limited

Analyst thesis 

Our recommendation is based on:

  • Valuations are subdued from an EV/EBITDA and P:E perspective.
  • SHP’s low value proposition, in keeping pricing inflation lower than general food and non-alcoholic inflation, positions it to continue with its momentum to gain market share.
  • Checkers Sixty60 continues to dominate the grocery delivery space albeit growing competition (Woolies Dash, Pick n Pay ASAP!, Zulzi, etc). 
  • It’s a stable growing business with a hold across LSM bands from its Shoprite & Usave formats to Checkers and Checkers Hyper stores. 
  • SHP is well-positioned to benefit further as consumers experience easing pressure from stabilising inflation and SARB interest rate cuts.

NextEra Energy Inc

Analyst thesis 

 

Our recommendation is based on:

  • Cost advantage: NextEra Energy’s leading scale in wind and solar generation and capital-efficient development model provides structural cost leadership, strong operating leverage, and high free-cash-flow visibility. Its long-standing utility footprint and renewable expertise create durable competitive barriers. 
  • Resilient earnings driven by contracted cash flows: A large portion of earnings is supported by regulated utility operations and long-term power purchase agreements. This stable earnings base, combined with diversified renewable assets, delivers predictable margins and consistent cash generation across cycles. 
  • Expansion into high-growth renewable segments within North America: NextEra continues to scale wind, solar, and energy storage platforms, capturing growth from data centres, industrial customers, and grid modernisation. A roughly 30-gigawatt backlog broadens its addressable market and extends the long-term growth runway. 
  • Room for long-term gains: The company’s visible cash flows, supportive policy tailwinds from IRA incentives, global decarbonisation trends, and potential lower interest rates indicate potential upside relative to its current valuation.

OUTsurance Group Limited

Analyst thesis

Our recommendation is based on: 

  • Direct model cost advantage: OUTsurance’s fully direct distribution model results in structurally lower acquisition costs, fast customer conversion, and a streamlined claims experience. This supports stronger underwriting margins relative to peers.
  • Consistent underwriting discipline: Strong risk selection, telematics-based pricing, and advanced claims analytics provide stable loss ratios and predictable earnings across cycles. This underwriting focus underpins OUTsurance’s long-term return profile.
  • Growing international footprint: Australia continues to scale with improving profitability, while Ireland offers early-stage, but high-potential growth as the book matures and loss ratios normalise. These markets enhance diversification and extend the growth runway.
  • Valuation concerns: Multiples are elevated relative to historical ranges, suggesting limited upside and making the stock less attractive from a risk/reward perspective.

Corporate Actions

Date Company Share code Expectation
25 February 2026 BARLOWORLD PREFSBAWP

Scheme of Arrangement

25 February 2026 MTN ZAKHELE FUTHI RF LIMITEDMTNZF

Scheme of Arrangement

25 February 2026 THARISA PLCTHA

Cash Dividend

18 February 2026 NEWWAVE US DOLLARNEWUSD

Interest

18 February 2026 NEWWAVE POUNDNEWGBP

Interest

18 February 2026 NEWWAVE EURONEWEUR

Interest

18 February 2026 GREENCOAT RENEWABLES PLCGCT

Cash Dividend

11 February 2026 KAAP AGRI LIMITEDKAL

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.

PSG Financial Services +27 (21) 918 7800

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