PSG Konsult a deserved winner at Morningstar

PSG Konsult nudge up a well-deserved win at this year’s Morningstar South Africa Fund Awards with the PSG Konsult Moderate Fund of Funds being selected as winner of the Morningstar Moderate Allocation Award. The R3,56 billion fund is listed in the Prud

Adriaan Pask, head of PSG Multi-Management and manager of the fund, said that he is delighted with the win, but that it is very much a team effort. We have had the same individuals involved in the decision making process since inception of the portfolios in 2005.

“As a multi-manager our philosophy is first and foremost to generate superior relative returns at a lower risk than a single managed fund. Of key importance to us is finding a balance between conviction in selected managers (with a blend of styles) and not too diluting the performance with too many portfolios. We try to have conviction in our research and decision making abilities.

“That is also why the Morningstar award is appreciated as it gives us recognition not only for superior performance, but also superior performance generated on a risk-adjusted basis, which is exactly what we try to achieve.

“We follow a best-of-breed approach by aligning our portfolio objectives with that of our underlying portfolio managers and ultimately with that of our investors. We believe that this promotes an increased cognisance of exactly what the investor expects of us and also what PSG Multi-Management expects of the underlying managers.

“Ultimately this translates into a greater probability that investor objectives will be reached. Therefore, although we monitor the asset allocation position very carefully in order to anticipate possible future outcomes, we do not meddle in the asset allocation strategy of the underlying manager. If we believe that the prevailing asset allocation risk is beyond that of what is suitable we will find a more suitable solution,” Pask said.

PSG Multi-Management makes use of between three and six underlying portfolios, while funds in the Prudential Variable category are mandated to invest between 0% and 75% of their portfolios in equities. PSG Konsult Moderate Fund of Funds’ exposure as of December 2011, including both foreign and domestic investments, was 62.5% and is aimed at a minimum investment term of 5 years.