“ Balancing risk and opportunity in this evolving market remains essential . ”
INVESTMENTS
“ Balancing risk and opportunity in this evolving market remains essential . ”
benchmark . These changes , of course , are insufficient to prevent climate change but will help better manage the risk and add a new dimension to how certain managers can be mandated going forward ( exclusions have not been implemented before ).
Since May 2024 , PPS Multi-Managers has maintained its tactical overweight in South African equities relative to its strategic asset allocation . This approach favours potential local economic recovery through equities rather than bonds , where the stance remains neutral . Given the valuation advantage of South African equities over global equities and the strong performance of appointed managers in 2024 , this position is expected to continue through much of 2025 .
With US equity valuations appearing less attractive over a ten-year period than global bonds , PPS Multi-Managers has been shifting towards an overweight global bond position . If economic conditions underperform market expectations , this asset class could serve as a key diversifier .
A DIVERSIFIED VIEW In the PPS Profit-Share Account™ , nearly 10 % is now allocated to South African hedge funds , with selective additions to private equity , particularly in education-focused investments . These alternative assets offer diverse return sources and provide some protection during equity market downturns .
Backing its manager research process , PPS Multi-Managers is introducing several partnership strategies in 2025 , focusing on specialised mandates . Some of these will be integrated into new postretirement solutions set to launch in the first half of the year , tailored to the needs of graduate professional members and their longevity risk .
The team is also actively engaging with appointed asset managers – especially in South Africa – on inclusion , transformation and climate risk to align solutions with member preferences , particularly younger cohorts .
PPS Multi-Managers continues to refine its approach to meet member needs while navigating an unpredictable market . With skilled active managers adept at capitalising on opportunities and market shifts , the strategy remains focused on balancing risk and opportunity – aiming to be approximately right rather than precisely wrong in an ever-changing landscape
* Kindly note that this does not constitute financial advice the information provided is purely informational . In terms of the Financial Advisory and Intermediary Services Act , an FSP should not provide advice to investors without an appropriate risk analysis and thorough examination of a client ’ s particular financial situation . The information , opinions and communication from the PPS Group or any of its subsidiaries , whether written , oral or implied , are expressed in good faith and not intended as investment advice , nor do they constitute an offer or solicitation in any manner .
David Crosoer
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