1. Note Financial assets and liabilities classified as fair value through profit or loss on initial recognition Financial assets and liabilities at amortised cost PPS ProfitShare accounts and reinsurance contracts Total carrying amount Fair value 7 15 691 – – 15 691 15 691 7 6 607 – – 6 607 6 607 7 20 042 – – 20 042 20 042 7 57 – – 57 57 7 11 500 – – 11 500 11 500 9 – – 1 382 1 382 1 382 13 – 1 069 – 1 069 1 069 14 – 2 915 – 2 915 2 915 10 – – (32 293) (32 293) (32 293) – – (7 290) (7 290) (7 290) – – (240) (240) (240) 9 – – (118) (118) (118) 15 (4 495) – – (4 495) (4 495) 16 (15 086) – – (15 086) (15 086) 9 – – (13) (13) (13) 20 – (221) – (221) (221) (a) * Fair value analysis of financial statement line items with a fair value (continued) The note has been restated to align with IFRS 17 disclosures and to remove prepayments from the table Qualifying policyholders’ residual interest in the net assets of the PPS Group Group R’m 2022 Restated* Equity securities(a) Local listed International listed Debt securities(a) Government and local bonds International listed Unit trusts and pooled funds(a) Reinsurance contract assets Receivables Cash and cash equivalents PPS Profit-Share accounts Liability for remaining coverage and incurred claims Short-term insurance policy liabilities Investment contract liabilities Debt securities are designated at fair value through profit and loss and Equity securities and Unit trusts and pooled funds are mandatorily held at fair value through profit and loss. Payables Liabilities to unit trust holders Reinsurance contract liabilities NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023 33 37. Management of risks (continued) 37.3 • • • • • • a. Funds managed by PPS Multi-Managers (Pty) Ltd The Collective Investments Scheme Control Act also imposes specific restrictions which the underlying managers have to comply with and also restricts the interest rate and credit risk, where applicable, that they are able to take. PPS Conservative Fund of Funds making manager changes where PPS Investments feels this is in the best interest of investors. Financial risk management (continued) writing segregated investment mandates with selected managers to tightly control portfolio risk; continuous monitoring of the portfolio risk and return characteristics of each selected manager as well as of the overall portfolio; and PPS Investments Group employs a combination of single- and multi-manager investment approach that is designed to generate acceptable levels of returns at lower than average levels of risk. This is achieved by: This multi-managed fund invests in a number of underlying managers with the specific mandate to employ real return strategies to provide real capital growth. Flexible asset allocation provides diversification across all asset classes and sectors, with equity exposure limit to not more than 40% of the portfolio value. Typical investments The managers invest in fixed instruments such as money market and bonds, as well as local and international equities. Investment objective To maximise total portfolio return while outperforming a conservative return target of CPI + 2% per annum over the medium term. Investment mandate Risk exposure A conservative fund exposed to credit risk, interest rate risk, local and international equity price risk and currency risk. thorough and ongoing quantitative and qualitative research of potential managers in the market; selecting specialist and multi-asset managers and multi managers, taking their investment style and specific areas of expertise into consideration; determining the optimal blend of selected managers within the portfolio through a portfolio construction and optimisation process; 228 Notes to the Consolidated Financial Statements
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