By PSG Asset Management
There can be little doubt that the past few years since the advent of the Covid-19 pandemic has marked some of the most challenging times for investors in recent memory.
We believe this is symptomatic of some deep-seated changes taking place in the investment environment. At their essence, these changes will mean a fundamental recalibration in the returns investors are likely to see from various asset classes over the next decade and perhaps even longer. There are a multitude of reasons for this, but briefly: we are likely to see a period of structurally higher inflation and interest rates, driven by real-world pressures like chronic underinvestment into real assets during the period following the global financial crisis (GFC), the cost-pressures introduced by the urgent need to transition to a green economy, as well as the impact of slowbalisation and the need to develop more resilient supply chains. The result: the environment investors will need to navigate will be very different in future and the transition is unlikely to proceed smoothly.
To successfully navigate this changing landscape, investors need to partner with independent thinkers with a proven track record of delivering alpha in the long-term and who can search for opportunities on a globally integrated basis. Simply trying to replicate the successful strategies of the past will not work. Our proven 3M (moat, margin, management) research process has demonstrated its worth over time, and enables us to identify opportunities that we believe will reward investors well for their patience in this emerging landscape. Because our portfolios are constructed using a benchmark-agnostic, bottom-up stock picking and globally integrated approach, they can look very different from the rest of the pack, offering our clients valuable diversification benefits. The multiple nominations and awards PSG Asset Management received, in this year’s Raging Bull Awards, highlights the success of this approach. It also reaffirms our view that the changing environment will be especially well-suited to stock pickers who can be selective about the opportunities they pursue, especially since we believe many of these will reside outside the popular indices.
Most importantly, even as we celebrate a strong shorter-term performance, we remain focused on achieving our fund objectives over the longer term. We believe our strong team-based approach, in-depth research and independent thinking drives our ability to look beyond the short-term noise and continue finding investment opportunities for our investors, even as conditions change. This provides our portfolios with a long runway to be a valuable alpha-generator and diversifier as a part of an overall balanced client portfolio.
PSG Asset Management manages a focused range of rand-denominated local unit trusts, and offers access to global markets through both rand-denominated and foreign currency denominated global funds.
PSG Asset Management won multiple awards across various categories at this year’s Raging Bull Awards.
For more information on all funds administered on the PSG Collective Investments (RF) Limited scheme or more information on the awards, visit www.psg.co.za/asset-management
PSG Asset Management (Pty) Ltd is an authorised financial services provider. FSP 29524