PSG’s Asset Management business simplifies product offering

The restructuring of PSG’s asset management business has gained further momentum. PSG Fund Management’s core range of funds is to be renamed with effect from 1 September 2010 with the aim to simplify its product offering and to centralise common functions within the business.

This follows an earlier announcement that PSG Group has embarked on a restructuring process to streamline the holding company of its various asset management businesses, PSG Fund Management, with the objective to provide for a focused and simplified asset management business.

PSG Fund Management’s marketing and sales director, Ross Breedt, said the aim is to providing an ‘easy-to-understand’ fund offering which each caters for specific needs and each occupies a unique space within a total investment solution covering the full asset risk spectrum. This will entail amongst others simplifying the choice of PSG unit trusts under the umbrella of a single brand, PSG Asset Management.

Breedt emphasised that there will be no changes to the management of the funds. “We will still encourage a culture of team management at product level, as has been the case at PSG Alphen Asset Management, PSG Tanzanite and PSG Absolute Investments.

“We believe that through this restructuring process we have not only significantly enhanced synergies, but also ensured that the crucial corporate DNA of PSG, which encourages entrepreneurial flair, has remained intact.

“Key personnel and particularly the asset managers will remain significant shareholders within their own underlying business units, being the ‘product stewards’ of the PSG unit trust range. We strongly believe that ‘Institutions are not accountable, PEOPLE are’,” Breedt said.

The funds that are to undergo name changes are:

Old name: New name:

PSG Alphen Growth Fund PSG Equity Fund

PSG Alphen Balanced Fund PSG Balanced Fund

PSG Alphen Optimal Income Fund PSG Optimal Income Fund

PSG Tanzanite Flexible Fund PSG Flexible Fund

The names of the remaining funds will not be changing.

From a risk spectrum perspective, the range of funds will be as follows:

(Click on image to enlarge)

Jan Mouton and his team of fund managers at the PSG Tanzanite Flexible Fund (becoming PSG Flexible Fund), is of the opinion that the name change is only cosmetic of nature. They will still be responsible for managing the highly rated PSG Flexible Fund with the same investment philosophy and processes.

According to Morningstar Inc the PSG Tanzanite Flexible Fund rankings in the Domestic Asset Allocation Flexible sector as at 30 June 2010 were:

· 2^nd out of 53 funds over 1 year

· 1^st out of 49 funds over 2 years

· 1^st out of 46 funds over 3 years

· 2^nd out of 24 funds over 5 years