Asset Manager of the Year explains why differentiated thinking is needed now more than ever
Anet Ahern, CEO at PSG Asset Management
Winner of the coveted South African Manager of the Year at the recent Raging Bull Awards, PSG Asset Management, see the accolades as an endorsement of their 3M investment philosophy, and its ability to deliver on clients’ needs and objectives in the long run.
PSG Asset Management CEO, Anet Ahern, says these awards hold special significance coming after an exceptionally challenging period in the markets.
While markets may be very efficient weighing machines in the long run, they can also be highly irrational voting machines in the short run – the sentiment is powerful and can sway market directions (and human behaviour) for far longer than you’d expect. “While savvy investors know that one way to investment success is to buy quality investments at a wide margin of safety, this is easier said than done,” says Ahern.
Ahern believes that investors need exposure to differentiated thinkers in order to ensure that their portfolios have a better chance of future success.
“With the era of ‘easy money’ having come to an end, we believe a market cycle change is under way. History has shown that during these transitionary periods, the best investment opportunities are seldom the obvious ones. It is now more important than ever to have an investment manager on your side who can identify and exploit the investment opportunities that lie ahead – as the winning investments of the future are likely to look very different to those of the past.”
Ahern notes that the price paid for an investment is key to the investment outcomes generated. PSG Asset Management’s 3M investment approach therefore combines a preference for attractively priced investments (Margin of safety) with a rigorous quality overlay (assessment of Moat and Management).
They manage a suite of rand-denominated local unit trusts and offer access to global markets through both rand-denominated and foreign currency denominated global funds.
Ahern says that their long-term track record affirms the success of proven process and offers important diversification and alpha generation benefits to patient investors, as part of a blended client portfolio. Their portfolios are also good options for retail investors, who can take a longer-term approach and ride out the occasional volatility which is part and parcel of active management.
“We follow a bottom-up, research driven and globally integrated investment process that seeks to find the best possible investment opportunities for our clients. Our research teams create carefully curated buylists across all asset classes, from which our fund managers construct portfolios within the parameters of the specific mandates in our focused fund range”, says Ahern.
As benchmark-agnostic, bottom-up stock pickers, portfolios are constructed on a globally integrated basis and can look different from the rest of the pack, offering clients valuable diversification benefits. Importantly, PSG Asset Management’s team-based approach ensures consistent and replicable process implementation over time. This underpins a successful long-term track record.
Ahern continues, “We are also very proud of the fact that our investment process has proven to be effective in the selection of global investment opportunities”. Winning Best (SA-Domiciled) Global Equity General Fund underscores the fact that, with the right team and the right process, being located in SA is not necessarily a constraint on our ability to deliver excellence to our clients.
“Looking ahead, we are excited by prospects for our funds and remain firmly focused on applying our tried and tested team-based process. Despite market volatility, we continue to find great opportunities for our clients, which we are confident will help them build wealth in the long term,” concludes Ahern.
PSG Asset Manager has been awarded as South African Manager of the Year.
Raging Bull certificate awards:
- The PSG Diversified Income Fund: Best SA Multi-Asset Income Fund for straight performance over three years.
- PSG Income Fund: Best SA Interest-Bearing Short-term Income Fund on a risk-adjusted basis over five years.
- PSG Global Flexible Feeder Fund: Best SA Domiciled Global Multi-Asset Flexible Fund for straight performance over three years.
Raging Bull trophy winners:
- PSG Diversified Income Fund: Raging Bull trophy winner for the Best South African Interest Bearing Fund.
- PSG Global Equity Feeder Fund: Raging Bull trophy winner for Best (SA-Domiciled) Global Equity General Fund.
- South African Manager of the Year