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PPS INVESTMENTS
PPS Investments (PPSI) provides investments and
savings solutions. Investors with PPSI are assured of
the highest investment standards, and also earn a
portion of the PPSI profit allocation as qualifying PPS
members. Purchasing a PPS product and a PPS fund
gains access to two layers of profit share.
What we do
Whether investing for retirement, preserving
savings or saving for a specific goal, PPSI offers
tax-efficient investment solutions for every life
stage. Our tax-structured products include living and
retirement annuity funds, personal pension funds,
preservation funds and investment accounts.
PPS Investments structure clients’ solutions using
our selection of funds. Our preferred investment
approach is multi-management, combining
complementary managers to ensure consistency
of returns and reduced risk. We conduct thorough
research before selecting the best combination of
asset managers to operate funds that are diversified
across investment strategies.
Performance
Despite weak economic fundamentals, PPSI continued
generating healthy metrics, with 46% growth in new
business recorded for 2018. The primary growth
drivers were improved support from external advisers
and distribution channels, along with new wholesale
services to advisers.
PPSI grew its investor base to over 41 000 members,
with assets of R31.4 billion in the register.
Each year PPS evolves further as a sophisticated,
multi-faceted builder and protector of member
wealth, from graduation into golden, well-provisioned
retirement.
In April 2018 we launched the new PPS Horizon
online advisory tool that enables advisers and
clients or potential clients to jointly navigate through
advice and products to build savings propositions.
Face-to-face meetings are not required at any stage,
but easily arranged at client request.
Advisers easily customise the PPS Horizon advisory tool
to their specific advice framework so that members
can use Horizon at leisure to explore their options in
their own time.
New distribution strategies have transformed PPSI’s new
business efforts into the realm of wholesale business
services, which are more scalable than the traditional
member-by-member approach. Consequently, PPSI
is able to contribute to a member’s broader financial
wellbeing.
A PPSI milestone was our introduction of the first three
funds in our new range of PPS Partnership Funds,
which are:
• PPS Defensive Fund
• PPS Stable Growth Fund
• PPS Managed Fund
Each of the Funds features an exclusive mandate
awarded to a leading boutique asset manager,
presenting unique opportunities for investors to access
these skills sets.
During the year, and without interruption of service
standards, we future-proofed clients and advisers’
administration backbone by migrating these functions
to Intembeko Investment Administrators, which is
South Africa’s first 100% black-owned investment
administration platform.
Benchmarking against peers
The PPS mutuality ethos requires all PPS products
to return contributions with profits, ensuring that
members with PPS Investments are getting profits
back. This is a major factor in maintaining outflows
frommember accounts at rates of below 10% of assets,
against the industry’s 17% average. The persistence of
the professional community of professionals allows
PPS members to maintain their premiums during tough
economic circumstances, particularly as many have
control of consistent cash flows.
GROUP OVERVIEW
(continued)
PPS
INTEGRATED REPORT 2018
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