Daily Investment Update

US equities advanced modestly on Thursday as investors assessed a mix of economic data and corporate news. The S&P 500 gained 0.37% to close at 5 914.62, the Dow Jones Industrial Average rose 0.33% to 42 190.51, while the Nasdaq edged up 0.07%. Data showed the US Producer Price Index (PPI) fell by 0.50% in April - its first monthly decline in over a year - reinforcing disinflation trends following this week’s softer CPI reading. Core retail sales also unexpectedly contracted, strengthening expectations for Federal Reserve rate cuts to support the economy. Industrials, utilities and pharmaceuticals led sector gains. General Electric climbed over 3% after Qatar Airways placed a record order for more than 400 GE engines to power its Boeings fleet. Cisco Systems also outperformed, rising after strong quarterly results and a raised full-year revenue outlook driven by AI infrastructure demand. In contrast, Walmart shares fell 1.20% after warning that new tariffs imposed by the Trump administration would result in price increases across key product categories. UnitedHealth Group tumbled 16% following reports of a US Department of Justice investigation into alleged fraud within its Medicare Advantage division.

Commodity markets saw mixed performance, with precious and industrial metals leading gains. Platinum rose by approximately 0.32% to $993.15 per ounce amid supply concerns, while gold declined by 0.09% to $3 225.13, supported by a weaker US dollar and soft inflation data. Brent crude oil prices also dropped by 2.38% trading at $64.52 per barrel following remarks by President Donald Trump suggesting that the US and Iran may be nearing an agreement on Tehran’s nuclear programme - news that raised the prospect of increased Iranian oil supply in global markets.

Asian markets closed lower as investor sentiment remained cautious amid global economic uncertainty and geopolitical tensions. Japan’s Nikkei 225 fell 0.98% to 37 755.51, while the broader Topix index declined 0.88% to 2 738.96, pressured by a stronger yen and losses in export-driven stocks. The Hang Seng Index dropped 0.88% to 23 432.26, reflecting ongoing concerns around global trade dynamics. Meanwhile, the Shanghai Composite slipped 0.69% to close at 3 380.40 during subdued investor confidence. 

European stock markets also closed with mixed results during sector-specific movements and broader economic concerns. The STOXX 600 index fell by 0.20%, weighed down largely by a 1.70% drop in the energy sector following the decline in oil prices. In contrast, the STOXX 50 rose 0.16% to close at 5 412.08 points, reflecting strength in certain sectors. The FTSE 100 increased by 0.39% closing at 8 618.64. Investor sentiment was dampened by stalled US-EU trade negotiations and recent inflation data that posed challenges for the European Central Bank. 

Locally, at 20h17 the rand strengthened against the US dollar trading at R18.01. the All Share Index (ALSI) closed at 92 338.44 points, down 0.15% for the day. The Capped Shareholder Weighted Top 40 Index (Capped SWIX 40) also dropped by 0.14%. Gold mining stocks also performed well, with Gold Fields and Harmony Gold increasing by 2.26% and 1.48%, respectively. On the other hand, some large-cap stocks like Sasol and Prosus saw declines of 4.61% and 3.07%, respectively. 

 

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ALBI (R) 1128.76 0.72 Brent Oil ($) 64.97 0.68 Gold ($) 3219.77 -0.63 Platinum ($) 990.82 -0.34 Rand/EUR 20.18 1.26 Rand/GBP 23.99 1.03 Rand/USD 18.02 1.28

Market indicators

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Date Index Current Level 1 Day Move 1 Month Move 6 Month Move 1 Year Move
2025-05-16 ALSI 92338.44 -0.15 3.39 12.17 20.43
2025-05-16 Basic minerals 47746.45 0.52 -10.24 21.19 5.89
2025-05-16 Fin + Ind 30 12462.81 -0.30 7.71 10.36 25.33
2025-05-16 Financial 51705.89 0.76 8.04 4.04 30.75
2025-05-16 Industrial index 140999.23 -1.07 7.86 15.56 22.18

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 nameNAV (Rands)
at 15 May 2025
Performance –As at 2025/04/30
1 year %3 year %5 year %Inception %
South African - Multi Asset - Low Equity PSG Investment Management Cautious Fund of Funds  Class D 1.44 15.54 10.06 13.37 10.96
PSG Stable Fund Class A 1.77 13.37 9.74 12.97 8.66
PSG Stable Fund Class E 1.78 14.02 10.38 13.61 8.53
PSG Wealth Preserver Fund of Funds Class D 26.95 14.43 10.26 10.79 9.32
South African - Multi Asset - High Equity PSG Balanced Fund Class A 108.56 16.12 11.91 19.12 12.86
PSG Balanced Fund Class E 108.70 16.79 12.55 19.80 10.28
PSG Investment Management Growth Fund of Funds  Class D 1.77 20.83 11.73 18.06 13.55
PSG Wealth Moderate Fund of Funds Class D 46.48 16.08 11.43 13.62 11.01
South African - Multi Asset - Income PSG Diversified Income Fund Class A 1.37 12.09 9.46 9.54 8.06
PSG Diversified Income Fund Class E 1.37 12.80 10.15 10.16 8.66
PSG Investment Management Multi-Asset Income Fund  of Funds Class D 1.18 11.41 8.75 8.97 8.33
PSG Wealth Income Fund of Funds Class D 12.77 10.93 8.91 8.33 7.99
South African - Equity - General PSG Equity Fund Class A 18.72 14.45 12.16 21.60 12.88
PSG Equity Fund Class E 18.78 14.66 11.56 21.42 9.35
PSG Equity Fund Class F 18.78 14.97 12.68 22.13 10.27
PSG Investment Management Opportunity Equity Fund of Funds Class D 1.24
PSG Wealth Creator Fund of Funds Class D 61.42 17.07 10.70 17.04 12.27
South African - Equity - SA General PSG SA Equity Class F 1.91 24.72 13.04 25.59 8.65
South African - Interest Bearing - SA Money Market PSG Money Market Fund Class A 1.00 7.95 7.49 6.01 7.95
PSG Money Market Fund Class F 1.00 8.26 7.80 6.29 5.55
South African - Interest Bearing - Short Term PSG Income Fund Class A 1.10 9.92 8.30 7.59 7.31
PSG Income Fund Class E 1.10 10.24 8.62 7.90 7.98
PSG Wealth Enhanced Interest Fund of Funds Class D 1.02 8.83 8.21 6.72 6.89
South African - Interest Bearing - Variable Term PSG Bond Fund Class A 1.00
South African - Multi Asset - Flexible PSG Flexible Fund Class A 8.87 13.26 11.39 19.89 11.34
PSG Flexible Fund Class E 8.87 13.55 11.69 20.20 10.42

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 nameNAV (Rands)
at 16 May 2025
Performance –As at 2025/04/30
1 year %3 year %5 year %Inception %
Global - Equity - General PSG Global Equity Feeder Fund Class A 5.00 0.22 11.73 16.95 12.11
PSG Global Equity Feeder Fund Class E 5.19 0.79 12.37 17.47 11.73
PSG Wealth Global Creator Feeder Fund Class D 4.95 5.25 14.36 11.39 14.39
Global - Multi Asset - Flexible PSG Global Flexible Feeder Fund Class A 3.90 2.17 11.25 14.84 11.94
PSG Global Flexible Feeder Fund Class B 4.12 2.76 11.89 15.33 12.45
PSG Wealth Global Flexible Feeder Fund Class D 5.15 7.60 10.58 7.05 10.84
PSG Wealth Global Moderate Feeder Fund Class D 5.21 6.40 10.73 6.97 11.99
Global - Multi Asset - Low Equity PSG Wealth Global Preserver Feeder Fund Class D 1.59 5.27 9.53 4.59 6.83

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 nameNAV (Rands)
at 15 May 2025
Performance –As at 2025/04/30
1 year %3 year %5 year %Inception %
EAA Fund GBP Cautious Allocation PSG Wealth Global Preserver FoF (GBP) Class D 2.07 -0.04 1.45 2.68 4.63
EAA Fund GBP Flexible Allocation PSG Wealth Global Flexible FoF (GBP) Class D 3.94 3.78 2.96 5.46 8.85
EAA Fund Global Flex-Cap Equity PSG Global Equity Sub-Fund Class A 2.36 3.27 5.93 16.91 5.67
PSG Global Equity Sub-Fund Class B 2.45 3.79 6.54 17.50 6.53
EAA Fund Global Large-Cap Blend Equity PSG Wealth Global Creator Fund of Funds Class D 3.16 7.08 7.51 10.30 9.24
EAA Fund USD Cautious Allocation PSG Wealth Global Preserver FoF (USD) Class D 1.77 6.69 3.58 4.02 3.64
EAA Fund USD Flexible Allocation PSG Global Flexible Sub-Fund Class A 20.53 5.21 5.62 15.16 5.73
PSG Global Flexible Sub-Fund Class B 21.86 5.72 6.12 15.52 6.35
PSG Investment Management Global Flexible Fund of Funds (Dollar) 1.71 7.71 2.82 4.39 2.79
PSG Wealth Global Flexible FoF (USD) Class D 3.35 9.41 4.33 6.27 7.76
EAA Fund USD Moderate Allocation PSG Wealth Global Moderate Fund of Funds Class D 2.19 7.55 4.62 6.32 5.19

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 2025/05/16
1 year %3 year %5 year %Inception %
PSG Wealth Income Growth Equity Portfolio 17.59 7.82 12.33 3.51
PSG Wealth Offshore Equity Portfolio (USD) 7.01 7.62 11.57 11.32
PSG Wealth SA Equity Portfolio 21.46 7.36 11.28 5.24
PSG Wealth SA Property Equity Portfolio 30.08 15.15 21.16 0.19

* 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

Investment Idea: Impala Platinum

  • In this report, we look at the interim results for the period ended 31 December 2024 of Impala Platinum, released in February 2025, alongside the current global macroeconomic environment. Financials:
    • Revenue declined by 2.6% to R42.3 billion, affected by lower realised 6E dollar price and a stronger rand to dollar conversion. This was offset by higher sales volumes and an increase in revenue from Nickel sales during the period.
    • The cost of sales increased by less than 1% during the period, showing the effect of restructuring initiatives during FY24.
    EBITDA declined by 23% to R6.5 billion.
    • Headline earnings per share declined by 43.6% to 206 cents compared to 365 cents for 1H24.
    • The realised price per 6E ounce declined by 7.6% to R23 831.
    Group unit cost worsened by 2.7% with the cost of production per 6E ounce increasing to R20 885.
  • Our research supports a hold recommendation

Investment Idea: Redefine Properties

  • We maintain a Buy recommendation on Redefine Properties (RDF) and leave our intrinsic value unchanged, with an upside of 21%. The recent increased likelihood of a US recession, tariff announcements along with concerns around the GNU have caused the share price to trade lower, however, the investment case remains unchanged given the lack of new information with regards to RDF since the last report.

  • We anticipate RDF’s distributable income per share to benefit from decreasing interest rates. This supported by distributable income per share management guidance for FY25 of between 50 to 53 cents per share when compared to FY24’s 50 cents per share. We anticipate similar levels as management’s guidance on distributable income per share growth. The company is expected to report interim results in mid-May, and we anticipate additional clarity on the outlook and assumptions regarding how expectations of either a slowdown or continuation in rate cuts could impact DIPS guidance. Our research supports a buy recommendation.

Investment Idea: Nedbank

  • On 4 March 2025, Nedbank released its FY24 results which were characterised by:
    1. Headline earnings increased 8% driven by non-interest revenue growth and lower impairments.
    2. Net interest income increased 1% driven by average interest-earning banking assets increasing 5%. The net interest margin decreased from 421 basis points to 405 basis points driven by competition for quality assets, squeeze in deposit spreads and a negative endowment mix impact.
    3. Non-interest revenue increased by 10% driven by net commission and fee income increasing by 10% and the prior year containing a non-repeatable R1 billion net monetary loss relating to Zimbabwe operations.
    4. Expenses increased by 8%, primarily due to staff costs increasing 7%, driven by an average annual increases of 6% and more expensive mix of employees.
    5. Impairments decreased by 17%, driven by an improving macroeconomic environment, the resolution of large counters in the wholesale portfolio, credit policy intervention and collections and origination efforts.

    Our research supports a buy recommendation.

Corporate Actions

Date Company Share code Expectation
23 May 2025 Gemfields Group Limited GML

Rights Distribution

21 May 2025 AFRICAN RAINBOW CAP INVESTMENTS AIL

Tender Offer

21 May 2025 Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference SharesIMRP1

Cash Dividend

21 May 2025 Investec Bank (Mauritius) Ltd IMRP2

Cash Dividend

21 May 2025 Investec Bank (Mauritius) Ltd IMRP2

Cash Dividend

21 May 2025 Investec Bank (Mauritius) Ltd IMRP3

Cash Dividend

21 May 2025 Investec Bank (Mauritius) Ltd IMRP4

Cash Dividend

21 May 2025 Investec Bank (Mauritius) Ltd IMRP6

Cash Dividend

21 May 2025 Investec Bank (Mauritius) Ltd IMRP7

Cash Dividend

21 May 2025 Texton Property Fund LimitedTEX

Cash Distribution (Capital Reduction)

21 May 2025 Texton Property Fund LimitedTEX

Special Cash Dividend

15 May 2025 BNP Paribas Issuance B.V.ZA239

Final Redempion

14 May 2025 Capitec Bank Holdings LimitedCPI

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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