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PPS INVESTMENTS
PPS Investments (PPSI) is the only investment business
in South Africa that returns its profits to investors. Profit
sharing, together with a proven track record, makes PPSI the
investment provider of choice for graduate professionals.
Our proposition is focussed deliberately around the needs of
members which has assisted us in avoiding unnecessary
product proliferation that we find ourselves surrounded by.
With assets under administration approaching R30 billion,
our members collectively own an investment business of
significant scale. They need to look no further than PPSI for all
their investment needs.
What we do
PPSI provides a carefully selected range of unit trusts to
house member investments. We also utilise a multi-manager
approach to consistently deliver on our stated portfolio
objectives. We conduct thorough research before selecting the
best combination of asset managers to operate funds that are
diversified across investment strategies.
PPSI offers tax-structured products that include living and
retirement annuity funds, personal pension funds, preservation
funds and investment accounts. While most investment
houses may offer similar portfolios, PPSI uniquely links
investment options to the PPS Profit-Share Account, so that
members can maximise and prolong the growth of their
profit-sharing portions.
Performance
Despite disappointing industry-wide figures for new business,
we increased our new business value by 14% to reach R4 billion.
Assets under administration increased 14% year-on-year to
close at R28.6 billion. The PPS specialised distribution model
distinguishes the group from other financial services firms and
continues to be a perennial driver of growth and profits.
Key performance indicators
PPSI's two key performance indicators (KPIs) are to achieve
the investment performances we targeted and to grow the
proportion of PPS members who save and invest with PPSI.
Despite challenging investment conditions towards the end of
2017, our various investment portfolios performed satisfactorily
and PPSI recorded the fastest growth of individual clients within
the PPS group, approaching the 40000 mark during the year.
Opportunities and challenges
South Africa’s volatile politics and linked investment ratings
downgrades hindered the investment market throughout
2017. Reviving economic growth in South Africa is set to be
a major challenge for the corporate world and government.
Nevertheless, opportunities for worthwhile returns are out
there and we strongly encourage investors to entrust their
assets to us. Our members should also seriously consider
retirement annuity structures or investment accounts that
South African Revenue Services (SARS) has exempted from
tax to grow national savings. Time-and-again, maintaining a
disciplined savings plan through periods of market uncertainty
has proven to effectively create wealth over the medium to
long term.
Investing via smartphone
The recently introduced PPS member smartphone app
has been widely acclaimed. This in-house developed
app enables members to interact with and manage their
investments through a smartphone interface. Similarly, by
year end, some 35% of our investors had registered for our
digital services, which we expect to be increasingly utilised by
time-pressured professionals.
Prospects
As 2018 unfolds, the PPS group is extending and refining our
member value proposition to further distinguish PPS, where
every policyholder is effectively a shareholder, from our
shareholder-owned competitors. PPSI’s role is to continue
delivering the consistent investment returns and product
integrity that characterised our first decade of trading.
This year we are revamping our back-office systems to further
optimise service standards for investors and financial advisors.
By end-2018, members should be able to access a dashboard
view of their entire relationship with PPS products and services.
At PPSI, we aim to double our number of investors over the next
five years, based on innovative digital tools and by upskilling
the independent financial advisers we utilise.
As a leading and responsible investment firm, PPSI will continue
imparting the need for personal financial accountability and
fiscal discipline to the incoming generations of professionals.
Expertly designed investment and savings plans through
economic cycles is the key to lifelong self-sufficiency for
our members.
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