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26
February 2025
Wall Street slips as S&P 500 hits 5-week low amid geopolitical tensions
Adriaan Pask
PSG Wealth
Wall Street opened lower as the S&P 500 slipped to a five-week low, and the Nasdaq dropped 0.70%, marking its fourth consecutive session of losses. Meanwhile, defensive sectors within the Dow helped it recover, climbing 200 points. Investor sentiment remained under pressure from ongoing geopolitical and trade tensions, particularly following President Trump’s confirmation that tariffs on Mexican and Canadian imports would proceed as planned after a month-long pause. This news led to a 10bps decline in 10-year Treasury yields. Furthermore, reports emerged indicating that the US is tightening restrictions on China’s semiconductor industry. The technology, communication services, and utilities sectors were the worst performers, while real estate, materials, and consumer staples outperformed.
The South African rand remained stable on Tuesday, amid market caution surrounding US President Donald Trump's tariff plans and geopolitical stance. At 15h01, the rand was trading at 18.3725 against the US dollar, just shy of its previous close of 18.3750. The dollar had weakened by about 0.40% against a basket of currencies. Investors took a cautious approach following Trump's comments about proceeding with tariffs on Mexico and Canada.
In the UK, the FTSE 100 closed largely unchanged, with gains in healthcare and defence stocks offsetting losses in retail and mining. Smith & Nephew saw a significant 6% rise, its largest increase since July 2024, following positive guidance despite challenges in China. Analysts pointed to strong performance in the US orthopaedics market and improved margins. BAE Systems also gained over 4% after Prime Minister Keir Starmer announced plans to boost UK defence spending to 3% of GDP over the next decade.
Across Europe, markets mirrored the UK and the US, with most indices closing near the flatline on Tuesday, marking the fourth consecutive session of subdued movement. Investors continued to assess the outlook for higher government spending by European nations and the impact of US-imposed trade barriers. The Eurozone’s STOXX 50 ended 0.11% lower at 5 448, while the pan-European STOXX 600 rose by 0.20% to close at 554. German automakers were among the top gainers, despite President Trump’s announcement of ongoing tariff plans for Mexico, a major manufacturing hub for European automakers. Volkswagen, BMW, and Mercedes-Benz saw their stocks rise between 1.50% and 3.60%.
In Asia, Japanese markets also traded in the red, with the Nikkei 225 Index falling by 1.39% to close at 38 238, and the broader Topix Index dropping 0.43% to 2 725. This marked a five-week low, as Japanese stocks mirrored Wall Street’s overnight losses. The downturn was driven by a pullback in technology and artificial intelligence stocks, raising concerns that the AI-driven rally might be losing momentum. However, some analysts remain optimistic, suggesting the AI sector could continue to thrive in the long term. Traders in Japan are awaiting a series of economic reports due on Friday, which could offer new insights into the Bank of Japan’s future monetary policy.
In China, the Shanghai Composite fell 0.80% to close at 3 346, while the Shenzhen Component dropped 1.17% to 10 854 on Tuesday, extending losses from the previous session. Technology stocks led the decline, following reports that the Trump administration is planning to tighten semiconductor restrictions on China, continuing the Biden administration's efforts to limit China’s access to critical US technologies.
In commodities, WTI crude oil futures slipped below $69 per barrel on Tuesday, nearing their lowest point since 10 December, amid concerns surrounding President Trump’s foreign policies and broader worries about the US economy. Meanwhile, gold fell below $2 900 per ounce, as investors took profits following a record-breaking session. On Monday, bullion had reached an all-time high, driven by safe-haven demand due to concerns over US trade policies.
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Market indicators
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| Date | Index | Current Level | 1 Day Move | 1 Month Move | 6 Month Move | 1 Year Move |
|---|---|---|---|---|---|---|
| 2026-03-20 | ALSI | 110572.12 | -2.76 | -8.86 | 5.60 | 27.00 |
| 2026-03-20 | Basic minerals | 83070.61 | -6.21 | -12.83 | 17.28 | 76.03 |
| 2026-03-20 | Fin + Ind 30 | 13049.91 | -1.08 | -7.14 | 0.52 | 12.43 |
| 2026-03-20 | Financial | 60068.60 | -0.87 | -9.37 | 13.62 | 25.50 |
| 2026-03-20 | Industrial index | 134877.29 | -1.28 | -4.73 | -8.96 | 2.15 |
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.
Local funds
| Morningstar Category | Fund name | Date as of | NAV (Rands) | Performance - As at 2026/02/28 | |||
|---|---|---|---|---|---|---|---|
| 1 year % | 3 year % | 5 year % | Inception % | ||||
| South African - Multi Asset - Low Equity | PSG Investment Management Cautious Fund of Funds Class D | 2025/12/31 | 1.62 | 18.78 | 13.52 | 13.67 | 12.14 |
| PSG Investment Management Cautious Fund of Funds Class D | 2025/12/31 | 1.62 | 18.78 | 13.52 | 13.67 | 12.14 | |
| PSG Stable Fund Class A | 2025/12/31 | 2.02 | 19.32 | 13.19 | 13.21 | 9.28 | |
| PSG Stable Fund Class E | 2025/12/31 | 2.02 | 20.01 | 13.84 | 13.86 | 9.29 | |
| PSG Wealth Preserver Fund of Funds Class D | 2025/12/31 | 29.42 | 16.21 | 13.28 | 11.46 | 9.66 | |
| South African - Multi Asset - High Equity | PSG Balanced Fund Class A | 2025/12/31 | 124.60 | 22.94 | 16.10 | 18.29 | 13.20 |
| PSG Balanced Fund Class A | 2025/12/31 | 124.60 | 22.94 | 16.10 | 18.29 | 13.20 | |
| PSG Balanced Fund Class E | 2025/12/31 | 124.90 | 23.65 | 16.77 | 18.96 | 11.17 | |
| PSG Investment Management Growth Fund of Funds Class D | 2025/12/31 | 2.16 | 27.62 | 17.59 | 18.59 | 15.65 | |
| PSG Wealth Moderate Fund of Funds Class D | 2025/12/31 | 53.00 | 21.30 | 15.74 | 14.04 | 11.45 | |
| South African - Multi Asset - Income | PSG Diversified Income Fund Class A | 2025/12/31 | 1.43 | 12.88 | 11.14 | 9.83 | 8.30 |
| PSG Diversified Income Fund Class A | 2025/12/31 | 1.43 | 12.88 | 11.14 | 9.83 | 8.30 | |
| PSG Diversified Income Fund Class E | 2025/12/31 | 1.42 | 13.60 | 11.85 | 10.48 | 9.05 | |
| PSG Investment Management Multi-Asset Income Fund of Funds Class D | 2025/12/31 | 1.21 | 11.21 | 10.01 | 8.96 | 8.75 | |
| PSG Wealth Income Fund of Funds Class D | 2025/12/31 | 13.12 | 10.88 | 10.32 | 8.79 | 8.21 | |
| South African - Equity - General | PSG Equity Fund Class A | 2025/12/31 | 23.74 | 35.26 | 19.63 | 21.96 | 13.54 |
| PSG Equity Fund Class A | 2025/12/31 | 23.74 | 35.26 | 19.63 | 21.96 | 13.54 | |
| PSG Equity Fund Class E | 2025/12/31 | 23.87 | 36.42 | 19.39 | 21.81 | 11.05 | |
| PSG Equity Fund Class F | 2025/12/31 | 23.85 | 35.87 | 20.18 | 22.51 | 11.91 | |
| PSG Investment Management Opportunity Equity Fund of Funds Class D | 2025/12/31 | 1.64 | 41.37 | — | — | 25.31 | |
| PSG Wealth Creator Fund of Funds Class D | 2025/12/31 | 75.75 | 29.60 | 17.64 | 17.24 | 13.19 | |
| South African - Equity - SA General | PSG SA Equity Class F | 2025/12/31 | 2.47 | 38.52 | 22.14 | 25.05 | 10.63 |
| PSG SA Equity Class F | 2025/12/31 | 2.47 | 38.52 | 22.14 | 25.05 | 10.63 | |
| South African - Interest Bearing - SA Money Market | PSG Money Market Fund Class A | 2025/12/31 | 1.00 | 7.23 | 7.82 | 6.43 | 7.93 |
| PSG Money Market Fund Class A | 2025/12/31 | 1.00 | 7.23 | 7.82 | 6.43 | 7.93 | |
| PSG Money Market Fund Class F | 2025/12/31 | 1.00 | 7.53 | 8.13 | 6.72 | 5.65 | |
| South African - Interest Bearing - Short Term | PSG Income Fund Class A | 2025/12/31 | 1.13 | 11.15 | 9.61 | 7.96 | 7.55 |
| PSG Income Fund Class A | 2025/12/31 | 1.13 | 11.15 | 9.61 | 7.96 | 7.55 | |
| PSG Income Fund Class E | 2025/12/31 | 1.12 | 10.62 | 9.64 | 8.11 | 8.17 | |
| PSG Wealth Enhanced Interest Fund of Funds Class D | 2025/12/31 | 1.02 | 8.07 | 8.63 | 7.15 | 6.94 | |
| South African - Interest Bearing - Variable Term | PSG Bond Fund Class A | 2025/12/31 | 1.16 | 25.54 | — | — | 23.18 |
| PSG Bond Fund Class A | 2025/12/31 | 1.16 | 25.54 | — | — | 23.18 | |
| South African - Multi Asset - Flexible | PSG Flexible Fund Class A | 2025/12/31 | 10.70 | 28.42 | 16.60 | 19.61 | 11.83 |
| PSG Flexible Fund Class A | 2025/12/31 | 10.70 | 28.42 | 16.60 | 19.61 | 11.83 | |
| PSG Flexible Fund Class E | 2025/12/31 | 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 Category | Fund name | Date as of | NAV (Rands) | Performance - As at 2026/02/28 | |||
|---|---|---|---|---|---|---|---|
| 1 year % | 3 year % | 5 year % | Inception % | ||||
| Global - Equity - General | PSG Global Equity Feeder Fund Class A | 2025/12/31 | 5.77 | 27.62 | 13.33 | 17.13 | 12.53 |
| PSG Global Equity Feeder Fund Class A | 2025/12/31 | 5.77 | 27.62 | 13.33 | 17.13 | 12.53 | |
| PSG Global Equity Feeder Fund Class E | 2025/12/31 | 6.02 | 28.36 | 13.99 | 17.73 | 12.29 | |
| PSG Wealth Global Creator Feeder Fund Class D | 2025/12/31 | 5.16 | 3.60 | 16.54 | 10.79 | 13.99 | |
| Global - Multi Asset - Flexible | PSG Global Flexible Feeder Fund Class A | 2025/12/31 | 4.29 | 22.14 | 11.43 | 14.37 | 12.00 |
| PSG Global Flexible Feeder Fund Class A | 2025/12/31 | 4.29 | 22.14 | 11.43 | 14.37 | 12.00 | |
| PSG Global Flexible Feeder Fund Class B | 2025/12/31 | 4.55 | 22.84 | 12.07 | 14.95 | 12.52 | |
| PSG Wealth Global Flexible Feeder Fund Class D | 2025/12/31 | 5.12 | -1.05 | 9.32 | 6.12 | 10.05 | |
| PSG Wealth Global Moderate Feeder Fund Class D | 2025/12/31 | 5.32 | 1.24 | 10.09 | 7.52 | 11.48 | |
| Global - Multi Asset - Low Equity | PSG Wealth Global Preserver Feeder Fund Class D | 2025/12/31 | 1.57 | -3.34 | 6.62 | 5.64 | 5.72 |
| PSG Wealth Global Preserver Feeder Fund Class D | 2025/12/31 | 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 Category | Fund name | Date as of | NAV (Rands) | Performance - As at 2026/02/28 | |||
|---|---|---|---|---|---|---|---|
| 1 year % | 3 year % | 5 year % | Inception % | ||||
| EAA Fund GBP Cautious Allocation | PSG Wealth Global Preserver FoF (GBP) Class D | 2025/12/31 | 2.21 | 2.29 | 4.07 | 2.81 | 4.86 |
| PSG Wealth Global Preserver FoF (GBP) Class D | 2025/12/31 | 2.21 | 2.29 | 4.07 | 2.81 | 4.86 | |
| EAA Fund GBP Flexible Allocation | PSG Wealth Global Flexible FoF (GBP) Class D | 2025/12/31 | 4.27 | 5.99 | 6.73 | 4.12 | 9.04 |
| PSG Wealth Global Flexible FoF (GBP) Class D | 2025/12/31 | 4.27 | 5.99 | 6.73 | 4.12 | 9.04 | |
| EAA Fund Global Flex-Cap Equity | PSG Global Equity Sub-Fund Class A | 2025/12/31 | 3.01 | 44.38 | 14.82 | 14.62 | 7.16 |
| PSG Global Equity Sub-Fund Class A | 2025/12/31 | 3.01 | 44.38 | 14.82 | 14.62 | 7.16 | |
| PSG Global Equity Sub-Fund Class B | 2025/12/31 | 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 D | 2025/12/31 | 3.62 | 17.49 | 17.05 | 7.91 | 10.08 |
| PSG Wealth Global Creator Fund of Funds Class D | 2025/12/31 | 3.62 | 17.49 | 17.05 | 7.91 | 10.08 | |
| EAA Fund USD Cautious Allocation | PSG Wealth Global Preserver FoF (USD) Class D | 2025/12/31 | 1.92 | 9.96 | 7.58 | 3.07 | 3.96 |
| PSG Wealth Global Preserver FoF (USD) Class D | 2025/12/31 | 1.92 | 9.96 | 7.58 | 3.07 | 3.96 | |
| EAA Fund USD Flexible Allocation | PSG Global Flexible Sub-Fund Class A | 2025/12/31 | 24.95 | 38.20 | 12.90 | 12.12 | 7.09 |
| PSG Global Flexible Sub-Fund Class A | 2025/12/31 | 24.95 | 38.20 | 12.90 | 12.12 | 7.09 | |
| PSG Global Flexible Sub-Fund Class B | 2025/12/31 | 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 D | 2025/12/31 | 3.67 | 12.38 | 9.93 | 3.48 | 8.04 | |
| EAA Fund USD Moderate Allocation | PSG Wealth Global Moderate Fund of Funds Class D | 2025/12/31 | 2.45 | 14.62 | 10.88 | 4.75 | 5.87 |
| PSG Wealth Global Moderate Fund of Funds Class D | 2025/12/31 | 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
Berkshire Hathaway Inc
Analyst thesis
Our recommendation is based on:
Diversified conglomerate with permanent capital advantage: Berkshire’s insurance operations generate a substantial float, providing a large, low-cost funding base that supports acquisitions and long-term investments. Its wholly owned subsidiaries span insurance, railroads, energy, manufacturing, and retail, contributing to diversified earnings and cash flows across economic cycles.
Record cash reserves support strategic optionality: Berkshire held a record cash and US Treasury Bills at 4Q25, reflecting disciplined capital allocation and a fortress balance sheet. This substantial liquidity, combined with strong operating cash flow, provides capacity for large‑scale acquisitions and opportunistic deployment.
Leadership transition introduces near term valuation risk: Warren Buffett’s exit creates the risk of removing a long-standing ‘Buffett premium’ from Berkshire’s valuation, reflecting his exceptional capital allocation track record. Any missteps by successor Greg Abel could lead to the shares trading at or below fair value rather than at a premium, as investors reassess management quality and execution risk.
Valuation supported by quality and balance sheet strength: While Berkshire trades at a premium to its long-term average book value multiple, its diversified earnings base, conservative leverage and strong balance sheet provide support for steady intrinsic value growth. Relative to its quality, track record and financial resilience, we see scope for continued long-term outperformance versus the broader market.
Alphabet Inc
Analyst thesis
Our recommendation is based on:
Alphabet is successfully defending its core advertising and search engine businesses by evolving keyword-based search into conversational intent. The integration of Gemini into Search not only protects the Group's competitive position; it expands it by surfacing higher-value, targeted ads within artificial intelligence (AI) overviews.
YouTube is undergoing a long‑term shift. Short videos (shorts) and connected TV (CTV) viewing help brands reach vast audiences and build awareness, while new shopping features allow viewers to purchase products directly from the videos. Together, this helps YouTube turn attention into sales and helps boost advertising revenue.
Google Cloud remains the primary growth accelerator, fuelled by a $240 billion backlog. The current surge in AI workload demand is expected to unwind into a mature, high-margin utility phase by 2028.
Alphabet has raised its 2026 CAPEX guidance to $185 billion, signalling a strong commitment to realising AI-driven gains. However, this raises concerns over the headwind to free cash flow and the time pressure to justify substantial spending and near-term returns on investment.
RTX Corporation
Analyst thesis
Our recommendation is based on:
Diversified portfolio with structural balance: RTX’s ~46% commercial and ~54% defence revenue mix provides earnings resilience across cycles. Core platforms support high switching costs and durable franchise value across the three segments, each generating roughly $28–$30 billion in revenue over the past year.
Record backlog supports multi-year coverage: RTX ended FY25 with a ~$268 billion backlog (+23% YoY) and 1.56x book-to-bill, reflecting strong order momentum. Exposure to long-cycle defence programs and multi-year OEM and aftermarket contracts underpins revenue visibility and operating leverage.
Secular defence and aftermarket tailwinds: Rising NATO and European defence commitments support missile and munitions demand, while Pratt & Whitney’s 4,000+ GTF installed base and fleet ageing dynamics drive high-single-digit aftermarket growth and margin expansion.
Valuation limits near-term upside: Following strong share price performance over the past year, RTX trades at ~29–30x forward earnings, a premium relative to legacy defence contractors. The current multiple suggests the market has largely priced in the company's backlog strength and secular growth tailwinds, leaving limited room for further upside re-rating.
Corporate Actions
| Date | Company | Share code | Expectation |
|---|---|---|---|
| 25 March 2026 | ATTACQ LIMITED | ATT | Cash Dividend |
| 25 March 2026 | BOWCALF | BCF | Cash Dividend |
| 25 March 2026 | BID CORPORATION LTD | BID | Cash Dividend |
| 25 March 2026 | BRITISH AMERICAN TOBACCO | BTI | Cash Dividend |
| 25 March 2026 | THE BIDVEST GROUP | BVT | Cash Dividend |
| 25 March 2026 | CASHBUILD | CSB | Cash Dividend |
| 25 March 2026 | HAMMERSON PLC | HMN | DRIP |
| 25 March 2026 | IMPALA PLATINUM HLD | IMP | Cash Dividend |
| 25 March 2026 | LIGHTHOUSE CAPITAL LIMITED | LTE | Cash Dividend |
| 25 March 2026 | MONDI PLC | MNP | DRIP |
| 25 March 2026 | MOTUS HOLDINGS LIMITED | MTH | Cash Dividend |
| 25 March 2026 | PRIMARY HEALTH PROPERTIES PLC | PHP | Cash Dividend |
| 25 March 2026 | RFG HOLDINGS LIMITED | RFG | Scheme of Arrangement |
| 25 March 2026 | SHOPRITE | SHP | Cash Dividend |
| 25 March 2026 | SANTAM LIMITED | SNT | Cash Dividend |
| 25 March 2026 | VALTERRA PLATINUM LIMITED | VAL | Cash Dividend |
| 25 March 2026 | WOOLWORTHS HOLDINGS | WHL | 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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