Performance At the start of 2023, the markets were preoccupied with inflation, especially in developed economies. In response, central banks persisted in raising interest rates to counteract inflation and safeguard economies against overheating. In this climate, consumers were the hardest hit as the cost of living, which had increased substantially in 2022, continued to climb. This resulted in a material reduction in disposable income, which limited consumers’ ability to save; a trend observed throughout the industry. While the US economy was more resilient than expected, market strength was rather narrow. Growth was limited to select sectors, with technology – especially artificial intelligence – being a standout performer. The Chinese economic recovery was underwhelming with its overleveraged property sector continuing to take strain. In South Africa, the Reserve Bank effectively controlled inflation, although economic growth encountered obstacles such as the persistent power supply crisis and logistical challenges at ports. Despite this, PPS Investments had another exceptional year with assets under management (AUM) increasing from R66.7 billion to R84.0 billion, exceeding R80 billion for the first time. The number of investors also increased by 8% to 66 546. Annual gross inflows from individual investors reached an impressive R7.6 billion which was 98% of the previous year’s record result, while net flows reached R2.5 billion. Profit before interest and tax (PBIT) increased from R121 million to R153 million, making this a milestone year for the business. Looking ahead As we look ahead, we acknowledge that forthcoming global and local events may trigger unforeseen market dynamics. However, we maintain confidence in the positioning of all our portfolios to capitalise on prevailing market conditions. More specifically, PPS Investments will continue to follow a diversified investment strategy to maximise opportunities and mitigate risks, including South Africa’s persistently low economic growth rate. We continue to believe that restoring consumer, business and investor confidence in the country is crucial for economic growth and are committed to contributing constructively to this goal. DOWN by 2% from R7.7 billion to R7.6 billion Gross inflows STRONG net flows of R2.5 billion UP from R121 million to R153 million Profit before interest and tax (PBIT) Morningstar ratings: 1 fund = 5-star 4 funds = 4-star UP from R66.7 billion to R84 billion Total assets under management UP by 8% from 61 460 to 66 546 Number of investors 37 Group performance
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