Cheap assets and high bond yields still make SA attractive: PSG
With many firms trading at a 55% discount to true value, there has never been a better time to buy SA equities
The JSE, which is on track for its worst year in a decade, can still provide good returns for SA investors, says PSG Asset Management. The asset manager, which has more than R47bn in assets under management, says the key is to look beyond blue chip stocks because there is myriad of “above-average” companies that are trading roughly at 55% discount of their true value. “Where there’s fear, you find the best prices, you find cheap assets,” said Tyrone Green, manager of PSG’s diversified income fund. PSG’s optimism about SA bonds and equities comes at a time when the JSE is down 12.37% year-to-date and has not delivered inflation-beating returns in five years. A number of asset managers are increasing their offshore allocation in search of better returns. Statistics from the Association for Savings and Investments in SA (Asisa) show that total industry flows — excluding funds of funds and money market funds — have shrunk from quarterly highs of around R50bn to R60bn five years ago to R...
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