All eyes on Biden’s spending plans

01 April 2021

All eyes on Biden’s spending plans

Daily Investment Update

Market commentary

	South Africa The ALSI reported a loss of 1.20% at the closing bell on Wednesday, as investors shifted focus to the US stimulus spending plans while remaining cautious about US bond yields.
	United States Wall Street opened Wednesday on a high note as sentiment was lifted by robust performance from the tech sector and possible developments around US President Joe Biden’s stimulus spending plan.
	Europe Most European markets traded flat on Wednesday, with the pan-European STOXX 600 being hard-hit, following Deliveroo’s 30% tumble after its London debut. The STOXX 600 closed down 0.24%.
	Hong Kong At the close of trade on Wednesday, the Hang Seng had lost 0.72% weighed down by several disappointing earnings reports and poor performances from the property and materials sectors.
	Japan The Nikkei ended the day 0.86% in the red as investors pulled out of the financial sector after “the fallout from the margin calls that brought down New York-based hedge fund Archegos Capital”.
	Rand The rand continued its winning streak on Wednesday, strengthening against most major currencies. At 17h30, the local currency stood at R14.76/$, R20.35/£ and R17.32/€.
	Precious metals Although gold made up some losses on Wednesday due to a weaker dollar, the metal headed for its worst quarter in four years. At 17h30, spot gold traded $1 70457/oz.
	Oil Oil slipped on Wednesday after OPEC+ lowered its 2021 demand forecasts fuelling market recovery concerns; however, it was offset by lower US inventories. Brent crude traded at $64.49 per barrel at 17h30.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	66 485.29	- 1.20	1.58	13.14	24.18	53.98
Gold mining	3 732.98	0.82	12.17	- 2.33	- 29.04	63.95
Basic minerals	48 030.31	- 0.33	1.31	18.62	28.32	92.20
Industrial index	93 180.85	- 1.47	1.86	12.95	21.29	38.17
Financial	31 243.47	- 2.23	1.73	3.84	24.13	37.81
Fin + Ind 30	8 028.12	- 1.63	1.77	10.29	22.00	38.05
International markets (Base currency)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Dow Jones (USD)	32 981.55	- 0.26	6.78	8.29	19.91	53.78
S&P 500 PR (USD)	3 972.89	0.36	4.38	6.17	19.07	56.35
NASDAQ (USD)	13 246.87	1.54	0.48	2.95	19.04	73.40
FT-100 (GBP)	6 713.63	- 0.86	4.16	4.97	16.37	21.91
Hang Seng (HKD)	28 378.35	- 0.70	- 1.76	4.55	21.53	23.93
Nikkei 225 (JPY)	29 178.80	- 0.86	1.35	7.02	26.87	56.68
MSCI World (USD)	8 402.62	0.24	3.33	4.92	19.57	54.03
Frankfurt (EUR)	6 473.46	0.00	8.86	9.40	17.61	51.05
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 711.39	0.22	- 3.88	- 9.63	- 9.91	4.45
Platinum ($)	1 185.42	- 0.17	- 2.89	15.78	34.63	62.38
Brent Oil ($)	63.54	- 0.94	- 3.01	24.93	56.63	181.81
Rand/USD	14.80	0.88	0.93	- 1.64	11.51	17.35
Rand/GBP	20.39	0.50	2.23	- 2.38	5.10	8.04
Rand/EUR	17.35	0.74	3.92	2.92	11.37	12.11
ALBI (R)	745.75	0.51	- 2.54	- 1.74	4.86	16.96

^{Some data may be delayed, the above table reflects the latest available information
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}

Economic calendar

Local	International
ABSA Manufacturing PMI MAR Total New Vehicle Sales MAR	EU: Markit Manufacturing PMI Final MAR UK: Markit/CIPS Manufacturing PMI Final MAR US: ISM Manufacturing PMI MAR

^{Source: Reuters, Business Day, Trading Economics}

PSG Product Matrix

Fund matrix

PSG Wealth Solutions
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Enhanced Interest FoF D	1.99	4.82	6.32	6.87	7.17	7.37
PSG Wealth Income FoF D	3.53	9.58	6.26	6.65	6.99	7.45
PSG Wealth Preserver FoF D	9.21	23.75	6.53	6.40	6.28	6.06
PSG Wealth Moderate FoF D	16.11	37.55	8.07	7.31	6.78	6.22
PSG Wealth Creator FoF D	28.23	65.01	12.11	9.20	8.09	7.60
PSG Wealth Global Preserver FF D	- 3.99	0.99	7.62	13.23	-	-
PSG Wealth Global Moderate FF D	0.31	11.68	12.05	15.06	10.88	7.12
PSG Wealth Global Flexible FF D	- 0.10	14.43	16.10	-	-	-
PSG Wealth Global Creator FF D	4.71	25.52	21.07	23.82	18.85	14.38
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	12.25	32.79	10.03	6.39	6.78	6.79
PSG Wealth Global Creator FoF D USD	17.32	53.17	18.90	14.55	14.37	13.89
PSG Wealth Global Preserver FoF (USD) D	7.70	19.56	5.31	4.68	4.24	4.95
PSG Wealth Global Flexible FoF (USD) D	11.50	38.61	14.21	11.75	11.60	11.84
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	2.71	10.55	2.80	4.77	2.29	5.16
PSG Wealth Global Flexible FoF (GBP) D	5.22	25.96	11.45	12.45	8.69	11.88
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	1.33	4.36	5.45	6.05	6.58	6.77
PSG Income A	2.61	8.79	8.07	8.02	8.16	8.31
PSG Diversified Income	4.92	14.95	7.21	6.88	7.24	7.55
PSG Stable A	15.27	31.53	4.09	3.49	4.38	5.30
PSG Balanced A	28.31	55.77	5.08	3.02	3.48	4.89
PSG Flexible A	31.38	60.97	3.53	2.52	2.99	4.77
PSG SA Equity D	31.02	73.91	- 1.78	- 5.97	-	-
PSG Equity A	33.49	66.86	2.01	- 0.12	0.44	4.05
PSG Global Flexible FF A	25.88	45.90	10.29	12.51	8.81	-
PSG Global Equity FF A	33.20	56.82	8.32	11.07	8.04	7.88
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	41.57	78.63	8.30	3.96	4.84	7.68
PSG Global Equity USD	49.63	89.97	7.05	3.14	4.46	8.09

^{The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
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}

Equity portfolio matrix

PSG Wealth House View Portfolios
Portfolio	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth SA Equity Portfolio	19.27	37.72	0.61	- 0.62	1.53	2.64
PSG Wealth SA Property Equity Portfolio	36.04	41.64	- 18.51	- 15.74	- 11.83	- 10.66
PSG Wealth Dividend Income Equity Portfolio	19.89	37.71	- 5.10	- 6.44	- 1.34	-
PSG Wealth Offshore Equity Portfolio (USD)	17.30	43.85	18.15	14.51	16.43	15.51

^{The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers}

Recent Investment Ideas

Highlights

We believe the group is a good quality company with attractive and sustainable operating margins and reliable cash conversion.
On a forward P/E basis, the group is trading at an 18.4% discount to its long-term average of 17.9 times and a 20.2% premium to its FactSet peers.
We feel this is attractive, given the low double-digit earnings growth expected over the medium term, which is ahead of most consumer staple counters trading as much richer valuations.
We maintain the overweight portfolio positioning.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

Diageo is a high-quality company with a strong portfolio of brands, a global footprint and structural growth tailwinds as it focuses on the premiumisation of its brands.
As such, the medium-term outlook for organic revenue growth remains positive.
However, in lieu of the Covid-19 lockdown disruptions, it will take time for the on-premise market to be fully operational.
We feel this is justified given the quality of its operations and its attractive growth; thus, we reaffirm the current overweight portfolio positioning.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

We believe BTI can consistently grow earnings over the long-term despite volume declines in the combustible segment.
We feel that medium-term earnings are likely to be supported by continuous investments in next generation products as these mature and improve profitability.
Regardless of a growth outlook that mirrors the broader staple market, the group is trading at a significant discount to staple counters.
Thus, we maintain an overweight position for the counter.
For more information about this counter, please contact your PSG Wealth adviser.

Corporate actions

Date	Company	Share code	Expectation
07 April 2021	AECI Limited	AFE	Cash Dividend
07 April 2021	Fairvest Property Holdings Limited (REIT)	FVT	DRIPOption 1 - (Cash Dividend) Gross - ZAR0.1059Less 20% DWT - ZAR0.02118Net - ZAR0.08472Option 2 (Reinvestment)Reinvestment Price - ZAR1.85082Default - Option 1 (Cash)
07 April 2021	Libstar Holdings Limited	LBR	Cash Dividend
07 April 2021	Mondi Plc	MNP	DRIPOption 1 - (Cash Dividend) Gross - ZAR7.3432845Less 20% DWT - ZAR1.4686569Net - ZAR5.8746276Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash)
07 April 2021	Quilter Plc	QLT	Cash Dividend
07 April 2021	Rand Merchant Investment Holdings Limited	RMI	Cash Dividend
07 April 2021	Standard Bank Limited 6.5% First Cumulative Preference Shares	SBKP	Cash Dividend
07 April 2021	Standard Bank Limited Non-Redeemable, Non-Cumulative, Non-Participating Second Preference Shares	SBPP	Cash Dividend
07 April 2021	Sea Harvest Group Limited	SHG	Cash Dividend
07 April 2021	Shoprite Holdings Limited	SHP	Cash Dividend
07 April 2021	Sanlam Limited	SLM	Cash Dividend

^{The information above is to the best of our knowledge correct at the time of distribution but due to the nature thereof cannot be guaranteed.
This document only contains general information and not the opinion of the distributor.}

All eyes on Biden’s spending plans

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01 April 2021