2020 INTEGRATED REPORT

PROFESSIONAL PROVIDENT SOCIETY INVESTMENTS PROPRIETARY LIMITED (CONTINUED) An expected increase in redemptions did not materialise and this is testimony to the overall stability of the professional market. Similarly, only a few members switched to lower-risk investment options, again confirming the understanding they have of short-term market shocks and the long-term performance of well-managed investment portfolios. The business managed the challenges it faced primarily through regular communication with staff, financial advisers and investors, keeping them updated on notable shifts in the economy and the markets. Due to our mutual model and the fact that markets rebounded intermittently throughout the year, we were able to retain our full staff complement on full pay. This was an important response as financial services staff working in investments are highly skilled and experienced, and it was important to retain this value for our members. A number of opportunities also presented themselves as a direct result of the pandemic. PPS Multi-Managers was able to purchase South African government bonds at attractive levels. While government continues to lack urgency in addressing its fiscal situation, PPS Multi-Managers is of the view that the yield on these investments is attractive, especially as cash rates are expected to remain low for a considerable period. While prevailing socio-economic conditions are likely to continue to have an impact on the investment industry, PPSI is buffered by the relative prosperity and resolute nature of its professional members. PROSPECTS PPS and PPSI will continue to follow a diversified investment strategy in order to mitigate against the weak economic conditions in South Africa as much as possible. Restoring consumer, business and investor confidence in South Africa is also crucial for economic growth and we at PPS are committed to playing a constructive role in doing this. We expect to see members continuing to take advantage of the family fee structure introduced in 2020, which will continue to support an intergenerational culture of saving and investment. All of our portfolios also remain well-positioned to achieve their longer-term objectives, should the environment for risk assets globally remain generally supportive, as it is expected to do. 60 | PPS INTEGRATED REPORT 2020