Fund in focus - the PPS Global Equity Fund

Hayley Brown, Executive of Business Development at PPS Investments

In the current market conditions, offshore investing has become vital in diversifying your investment portfolio as it offers an opportunity to adequately benefit from a greater investment universe.

When you have offshore exposure, it means that you’re spreading your risks - or diversifying - geographically. Diversification across different asset classes, asset managers, geographical locations or investment strategies means that at any point in time you have exposure to an element in your portfolio that, when optimally combined, should act in a complementary way. Your portfolio is therefore better able to withstand fluctuating market conditions, creating smoother returns over the long run.

But investing offshore can be a difficult landscape to traverse with various ways to access. Some of the common approaches are through opening an offshore bank account, or investing in unit trusts that offer offshore asset class exposure. When selecting unit trusts, an important aspect to consider is choosing an asset manager with extensive knowledge and experience to navigate the large universe of stocks and markets available, while having a keen understanding of the global market place and where to find value.

As a multi-manager, we spend a substantial amount of time finding exceptional asset managers through our extensive quantitative and qualitative research screening and selection process. We embarked on this process to find a partnership manager for our newly launched offshore solution, the PPS Global Equity Fund, as part of our PPS Partnership Fund range. The manager selection for this fund bears testimony to our process, having partnered with one of the largest and oldest managers in the world.

Accessing diversified offshore exposure via the PPS Global Equity Fund
The PPS Global Equity Fund, managed in partnership with Capital Group, is suited for investors who have discretionary savings that they would like to invest offshore in a global equity, dollar denominated fund. The primary objective of the Fund is to outperform the MSCI All Country World Index over the long term.

The Fund will invest in a diversified portfolio of global equity and equity-related securities with strong growth potential, listed on recognised exchanges worldwide. Using a bottom-up and research focused investment process, opportunities in both developed and emerging market equities are considered. Investments will have a global focus and are diversified across geographic regions and markets.

For investors that prefer to invest in a rand-denominated fund, the PPS Global Equity Feeder Fund, which invests directly into the PPS Global Equity Fund, is also available on the PPS Investments platform.

Introducing Capital Group - partnership manager for the PPS Global Equity Fund
Capital Group is a well-established manager with a strong performance history through various market cycles. Their time-tested strategy has uncovered opportunities from changing patterns of world trade for 45 years. Using a bottom-up, research-driven approach that focuses on a combination of early stage and established multi-nationals, has fared well over the years. A multi-councillor approach to investing helps to diversify the fund to ensure smoother returns over the investment horizon, reducing factor and style biases.

Offshore investing made accessible
As an investor, you may not have the resources or appetite to research offshore investment options. Investing in the PPS Global Equity Fund gives you access to a top international investment manager with a proven track record through various market cycles.