Daily Investment Update

US equities gained traction on Tuesday, continuing a trend of tracking Treasury market developments as weak economic data and downbeat corporate signals bolstered expectations of forthcoming interest rate cuts. The S&P 500 and Nasdaq both moved higher, while the Dow Jones Industrial Average added 200 points. March job openings in the US fell to 7.19 million - below economists’ forecasts - while the Conference Board’s consumer sentiment survey revealed a notable rise in pessimism.

The South African rand weakened on Tuesday as markets awaited Finance Minister Enoch Godongwana’s announcement on the timing of a revised national budget. The minister faces pressure to amend fiscal plans after shelving a controversial increase in value-added tax (VAT), which had drawn strong opposition from across the political spectrum. By 14h16 GMT, the rand had depreciated by around 0.30%, trading at 18.5475 against the US dollar. The protracted debate over the 2025 budget represents the most significant challenge to date for the Government of National Unity, formed after the African National Congress lost its parliamentary majority in last year’s general election. The VAT increase - initially proposed as a two percentage-point rise in February - was scrapped following last-minute disagreements within the coalition.

In London, the FTSE 100 hovered around 8 410, trading slightly lower as investors absorbed a flurry of mixed corporate earnings reports. Associated British Foods fell over 7% after reporting a 10% drop in first-half profits, with sales marginally behind last year’s figures. BP declined by 3.60%, weighed down by falling oil prices and a 48% year-on-year drop in net profit to $1.4 billion, attributed to weaker refining margins, subdued gas trading, and the departure of its chief strategy officer. AstraZeneca also declined 4% following disappointing first-quarter results.

European markets were mixed, reflecting investor uncertainty in the face of varied earnings reports and geopolitical concerns. The Stoxx 50 edged down 0.20%, while the broader Stoxx 600 gained 0.20%. However, the automotive sector lagged, falling 0.40%, led by Volvo Cars, which posted a sharp decline in first-quarter profits and suspended its full-year guidance. The Swedish carmaker also announced SEK 18 billion (approximately $1.87 billion) in planned cost reductions.

In Japan, the Nikkei 225 advanced 0.38% to close at 35 840, while the broader Topix Index rose 0.86% to 2 651 on Monday, building on last week’s rally. Gains were led by export-driven firms as the yen weakened from recent highs, improving the earnings outlook for exporters and enhancing the appeal of Japanese assets to foreign investors.

Meanwhile, in China, markets extended their losing streak. The Shanghai Composite slipped 0.05% to 3 287, and the Shenzhen Component also declined by 0.05% to 9 850 on Tuesday. This marked the third consecutive session of losses amid persistent uncertainty surrounding Sino-US trade relations.

In commodities markets, WTI crude oil futures dropped by over 1% to approximately $61.10 per barrel, recording a second consecutive session of losses amid ongoing concerns about potential oversupply and the lack of clarity in US-China trade negotiations. Gold also declined, falling below $3 320 per ounce, as easing fears of a trade war reduced investor demand for traditional safe-haven assets. US Treasury Secretary Scott Bessent noted on Monday that several major trading partners had made “very good” tariff proposals, adding that China’s move to exempt certain US goods from retaliatory duties suggested a willingness to de-escalate tensions.

Navigation

ALBI (R) 1118.79 0.07 Brent Oil ($) 61.04 -0.03 Gold ($) 3234.07 -1.66 Platinum ($) 962.19 -0.80 Rand/EUR 21.06 0.21 Rand/GBP 24.78 0.29 Rand/USD 18.65 -0.43

Market indicators

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Date Index Current Level 1 Day Move 1 Month Move 6 Month Move 1 Year Move
2025-05-01 ALSI 91583.39 0.30 4.34 9.19 24.60
2025-05-01 Basic minerals 49949.87 0.26 2.05 16.65 14.94
2025-05-01 Fin + Ind 30 12176.65 0.33 5.02 7.53 27.93
2025-05-01 Financial 50867.32 -0.16 4.61 1.98 32.12
2025-05-01 Industrial index 137058.61 0.70 5.01 11.70 25.48

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 29 Apr 2025
Performance –As at 2025/03/31
1 year %3 year %5 year %Inception %
South African - Multi Asset - Low Equity PSG Investment Management Cautious Fund of Funds  Class D 1.43 17.00 9.66 14.27 10.92
PSG Stable Fund Class A 1.77 13.12 9.13 13.91 8.59
PSG Stable Fund Class E 1.77 13.78 9.75 14.56 8.45
PSG Wealth Preserver Fund of Funds Class D 26.78 12.50 9.48 11.72 9.23
South African - Multi Asset - High Equity PSG Balanced Fund Class A 107.57 16.08 10.95 21.17 12.82
PSG Balanced Fund Class E 107.68 16.75 11.59 21.86 10.16
PSG Investment Management Growth Fund of Funds  Class D 1.76 23.75 11.08 19.73 13.49
PSG Wealth Moderate Fund of Funds Class D 45.81 13.16 10.11 15.24 10.87
South African - Multi Asset - Income PSG Diversified Income Fund Class A 1.36 11.87 9.18 9.90 8.04
PSG Diversified Income Fund Class E 1.36 12.58 9.86 10.52 8.63
PSG Investment Management Multi-Asset Income Fund  of Funds Class D 1.17 11.65 8.52 9.13 8.29
PSG Wealth Income Fund of Funds Class D 12.72 11.01 8.82 8.46 7.99
South African - Equity - General PSG Equity Fund Class A 18.46 17.80 11.63 24.59 12.90
PSG Equity Fund Class E 18.52 17.81 10.99 24.39 9.35
PSG Equity Fund Class F 18.52 18.35 12.15 25.13 10.28
PSG Investment Management Opportunity Equity Fund of Funds Class D 1.23
PSG Wealth Creator Fund of Funds Class D 60.02 16.36 9.03 19.91 12.14
South African - Equity - SA General PSG SA Equity Class F 1.89 28.87 12.03 27.91 8.56
South African - Interest Bearing - SA Money Market PSG Money Market Fund Class A 1.00 8.04 7.41 5.99 7.95
PSG Money Market Fund Class F 1.00 8.35 7.72 6.27 5.54
South African - Interest Bearing - Short Term PSG Income Fund Class A 1.10 9.86 8.16 7.67 7.30
PSG Income Fund Class E 1.09 10.19 8.47 7.99 7.97
PSG Wealth Enhanced Interest Fund of Funds Class D 1.02 8.96 8.12 6.70 6.88
South African - Interest Bearing - Variable Term PSG Bond Fund Class A 0.99
South African - Multi Asset - Flexible PSG Flexible Fund Class A 8.79 15.33 10.89 22.34 11.32
PSG Flexible Fund Class E 8.80 15.63 11.18 22.65 10.36

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 30 Apr 2025
Performance –As at 2025/03/31
1 year %3 year %5 year %Inception %
Global - Equity - General PSG Global Equity Feeder Fund Class A 4.95 0.61 12.15 21.37 12.12
PSG Global Equity Feeder Fund Class E 5.14 1.19 12.80 21.77 11.74
PSG Wealth Global Creator Feeder Fund Class D 4.86 1.09 13.05 13.90 14.41
Global - Multi Asset - Flexible PSG Global Flexible Feeder Fund Class A 3.90 1.30 11.07 18.24 11.82
PSG Global Flexible Feeder Fund Class B 4.12 1.89 11.71 18.60 12.33
PSG Wealth Global Flexible Feeder Fund Class D 5.16 3.35 10.52 8.74 10.79
PSG Wealth Global Moderate Feeder Fund Class D 5.23 1.43 10.75 8.40 11.91
Global - Multi Asset - Low Equity PSG Wealth Global Preserver Feeder Fund Class D 1.62 2.04 10.95 5.79 6.73

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 29 Apr 2025
Performance –As at 2025/03/31
1 year %3 year %5 year %Inception %
EAA Fund GBP Cautious Allocation PSG Wealth Global Preserver FoF (GBP) Class D 2.04 2.34 2.56 3.83 4.84
EAA Fund GBP Flexible Allocation PSG Wealth Global Flexible FoF (GBP) Class D 3.82 3.99 3.02 7.25 9.03
EAA Fund Global Flex-Cap Equity PSG Global Equity Sub-Fund Class A 2.27 4.38 4.07 20.36 5.77
PSG Global Equity Sub-Fund Class B 2.36 4.91 4.67 20.93 6.76
EAA Fund Global Large-Cap Blend Equity PSG Wealth Global Creator Fund of Funds Class D 3.01 3.99 4.49 12.72 9.34
EAA Fund USD Cautious Allocation PSG Wealth Global Preserver FoF (USD) Class D 1.76 5.05 2.52 4.79 3.63
EAA Fund USD Flexible Allocation PSG Global Flexible Sub-Fund Class A 19.97 4.87 3.22 17.80 5.71
PSG Global Flexible Sub-Fund Class B 21.26 5.36 3.71 18.03 6.33
PSG Investment Management Global Flexible Fund of Funds (Dollar) 1.67 5.07 0.75 5.94 2.78
PSG Wealth Global Flexible FoF (USD) Class D 3.27 6.25 2.22 7.84 7.77
EAA Fund USD Moderate Allocation PSG Wealth Global Moderate Fund of Funds Class D 2.13 4.40 2.35 7.59 5.18

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 2025/04/30
1 year %3 year %5 year %Inception %
PSG Wealth Income Growth Equity Portfolio 20.34 6.33 10.49 3.43
PSG Wealth Offshore Equity Portfolio (USD) 5.54 5.51 10.16 10.90
PSG Wealth SA Equity Portfolio 24.85 6.02 9.84 5.14
PSG Wealth SA Property Equity Portfolio 31.91 13.52 18.94 0.16

* 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: PPC

PPC’s largest segment is South Africa and Botswana:
a) Price increases should continue to help improve margins.
b) Increased construction from lower interest rates, improvement in infrastructure and thematic themes such as urbanisation could potentially help with industry growth. Volumes could also further benefit from expansion projects such as the R3 billion cement plan in the Western Cape. Thanks to its premium cement, the company can safeguard its market share against competitors offering lower-quality products, especially where quality is a priority for customers.
c) However, volumes are going to remain under pressure as competition remains high and exacerbated by price increases.
d) The real opportunity lies in government intervention: government spend (infrastructure plan), import tariffs and SOE performance.
International (Zimbabwe): The company switched to hard currency; the dollar cleans up reporting with no more hyper-inflation items.

Our valuation has an upside of 6% which supports our hold view. We value the company on a discounted cash flow basis which takes into account dividends received in international business. A high discount rate was applied due to inflationary pressure in Zimbabwe and uncertainty relating to supply demand dynamics in the cement industry.

Investment Idea: Standard Bank

On 13 March 2025, Standard Banks released its FY24 results. Highlights from the results were as follows:

1. Net interest income increased by 3% to R101 billion.
   a) Average interest earning assets grew by 4%.
   b) Net interest margin decreased from 4.94% to 4.90%.
2. Non-interest revenue (NIR), including insurance and asset management, increased by 1% to R80 billion.
   a) Banking net fee and commission income (representing 40% of the total R80 billion) increased by 4% (11% in constant currency) due to client and volume growth combined with price increases.
   b) Combined net income from insurance and asset management had strong growth (+11%) benefiting from positive market movements while insurance also benefitted from 14% growth in new business value.
   c) Other gains and losses on financial instruments were a large detractor, with R1.7 billion decrease, impacted by assets being reclassified resulting in the related income being classified to net interest income in 2024.

Our research supports a buy recommendation.

Investment Idea: Old Mutual

  • Old Mutual has 12% upside to our intrinsic value at the time of this report. We believe a continuation in an improving consumer from lower interest rates combined with management efforts to improve profitability through margin-accretive sales (mix), interventions to improve persistency and expense and capital management should serve as potential catalysts to unlock this upside.
  • We expected the near-term loss run rate of the bank to be a headwind in an already very competitive environment in both the insurance and banking sectors.

Headline earnings increased by 20% to R8.8 billion, driven by higher results from operations, stronger shareholder investment returns, and a non-repeat of prior year once-off losses relating to IFRS 17 accounting transition. Our research supports a buy recommendation.

Corporate Actions

Date Company Share code Expectation
29 April 2025 Glencor PlcGLN

Share Premium Distribution

29 April 2025 aREIT Prop Limited APO

Cash dividend

23 April 2025 BNP Paribas Issuance B.V.ZA235

Interest payment

23 April 2025 Wilson Bayly Holmes Ovcon Limited WBO

Cash dividend

 

23 April 2025 Thugela Resources Limited TGA

Cash dividend

23 April 2025 Supermarket Income Reit PLC SRI

Cash dividend

23 April 2025 Shafterbury Capital PlcSHC

Cash dividend (PID Portion)

23 April 2025 Stadio Holdings Limited SDO

Cash dividend

23 April 2025 Investec Bank (Mauritius) Ltd IMRP5

Cash dividend

23 April 2025 Hammerson PlcHMN

DRIP

23 April 2025 Choppies Enterprises Limited CHP

Cash dividend

23 April 2025 CA Sales Holdings Limited CAA

Cash dividend

23 April 2025 Barloworld Limited 6 percent Cumulative Preference Shares BAWP

Cash dividend

23 April 2025 Anglo American Platinum Limited AMS

Cash dividend

23 April 2025 Anglo American Platinum Limited AMS

Special cash dividend

23 April 2025 ABSA Bank Limited Non-Cumulative Non-Redeemable Preference Shares ABSP

Cash dividend

23 April 2025 ABSA Group LimitedABG

Cash dividend

09 April 2025 ADvTECH Limited ADH

Cash Dividend

09 April 2025 AECI LimitedAFE

Cash Dividend

09 April 2025 AVI LimitedAVI

Cash Dividend

09 April 2025 Curro Holdings LimitedCOH

Cash Dividend

09 April 2025 Harmony Gold Mining Company Limited HAR

Cahs Dividend

09 April 2025 HomeChoice International PLC HIL

Cash Dividend

09 April 2025 Libstar Holdings Limited LBR

Cash Dividend

09 April 2025 Lighthouse Capital LimitedLTE

DVOP

09 April 2025 Mpact Limited MPT

Cash Dividend

09 April 2025 Momentum Metropolitan Holdings Limited MTM

Cash Dividend

09 April 2025 MTN Group Limited MTN

Cash Dividend

09 April 2025 Nedbank Group Limited NED

Cash Dividend

09 April 2025 Old Mutual Limited OMU

Cash Dividend

09 April 2025 Quilter Plc QLT

Cash Dividend

09 April 2025 Resilient REIT Limited RES

Cash Dividend

09 April 2025 Standard Bank Group Limited SBK

Cash Dividend

09 April 2025 Sabvest Capital Limited SBP

Cash Dividend

09 April 2025 Schroder European Real Estate Investment Trust PLC SCD

Cash Dividend

09 April 2025 Sea Harvest Group Limited SHG

Cash Dividend

09 April 2025 Sun International Limited SUI

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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