PPS Multi-Managers have also implemented selective exclusions in its largest global equity portfolio and will target a weighted carbon intensity somewhat less than the 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 exclusions 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 educationfocused investments . These alternative assets offer diverse return sources and provide some protection during equity market downturns .
PPS Multi-Managers is enhancing its manager research with new partnership strategies in 2025 , focusing on specialised mandates . Some will feature in post-retirement solutions launching in early 2025 , tailored for graduate professionals and longevity risk .
The team is also engaging asset managers , especially in South Africa , on inclusion , transformation and climate risk to align with member preferences , particularly younger cohorts .
PPS Multi-Managers continues to refine its approach to meet member needs in an unpredictable market . Our skilled active managers capitalise on opportunities and shifts , balancing risk and reward to stay approximately right rather than precisely wrong
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* 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 . PPS Ltd is a licensed insurer conducting life insurance business , a licensed controlling company and an authorised FSP .
David Crosoer
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