The South African asset manager that turned R100,000 into R17.63 million in 20 years
A R100,000 investment in PSG Financial Services’ (PSG) shares in April 2005 would be worth R17.63 million today.
This investor would have seen a 27.3% annual growth in their investment, outperforming the JSE All-Share Index (ALSI), which returned 14.2% over that same period.
This was revealed in PSG’s results presentation for the first half of the 2027 financial year.
The firm’s results for the six months through August 2026 were released on Thursday, 15 October.
PSG’s results presentation showed that, from 11 April 2005 to 31 August 2026, its share price has compounded at an annual growth rate of 22.6%.
Over that same period, its recurring headline earnings per share have achieved a compound annual growth rate of 19.7%.
This means both PSG’s earnings and share price have outperformed the JSE ALSI from April 2005 to August 2026.
The JSE ALSI is South Africa’s primary benchmark stock market index, tracking the performance of the largest companies listed on the local bourse.
A R100,000 investment in the JSE ALSI on 11 April 2005 would be worth R1.71 million today – R15.92 million less than an investment in PSG over that same period.
From 11 April 2005 to 31 August 2026, the JSE ALSI compounded at an annual growth rate of 14.2%.
11 April 2005 is used as the starting date because it marks the date when PSG’s shares commenced trading over-the-counter.
This established the starting line for its tracking index before the firm transitioned to the JSE’s main board in June 2014.
PSG Financial Services was established under the PSG Group, founded by billionaire businessman Jannie Mouton and Chris Otto. Their firm was also an early investor in Curro and Capitec.
PSG Financial Services was originally known as PSG Konsult, but was rebranded in August 2023.
Today, the company operates through three specialist divisions – Wealth, Asset Management, and Insure.
It boasts a network of 998 advisers spread across 266 offices across all of South Africa’s nine provinces.
| Date | PSG Financial Services investment | PSG Annual growth in investment | JSE ALSI Investment | Annual growth in investment |
| 2005/04/11 | R100,000 | R100,000 | ||
| 2006/02/28 | R286,797 | 187% | R146,929 | 47% |
| 2007/02/28 | R490,706 | 71% | R203,678 | 39% |
| 2008/02/29 | R526,854 | 7% | R248,335 | 22% |
| 2009/02/27 | R426,014 | -19% | R154,988 | -38% |
| 2010/02/26 | R509,895 | 20% | R229,848 | 48% |
| 2011/02/28 | R597,845 | 17% | R284,027 | 24% |
| 2012/02/29 | R790,336 | 32% | R311,393 | 10% |
| 2013/02/28 | R1,203,871 | 52% | R371,546 | 19% |
| 2014/02/28 | R2,177,731 | 81% | R456,251 | 23% |
| 2015/02/27 | R3,190,197 | 46% | R529,912 | 16% |
| 2016/02/29 | R3,080,237 | -3% | R506,779 | -4% |
| 2017/02/28 | R3,419,266 | 11% | R538,627 | 6% |
| 2018/02/28 | R4,022,205 | 18% | R632,573 | 17% |
| 2019/02/28 | R5,040,607 | 25% | R626,884 | -1% |
| 2020/02/29 | R3,771,876 | -25% | R591,116 | -6% |
| 2021/02/28 | R4,396,771 | 17% | R787,380 | 33% |
| 2022/02/28 | R6,836,217 | 55% | R948,548 | 20% |
| 2023/02/28 | R6,601,990 | -3% | R1,007,780 | 6% |
| 2024/02/29 | R7,894,985 | 20% | R978,948 | -3% |
| 2025/02/28 | R9,620,794 | 22% | R1,199,769 | 23% |
| 2026/02/28 | R15,327,336 | 59% | R1,853,517 | 54% |
| 2026/08/31 | R17,634,303 | 15% | R1,716,096 | -7% |
| CAGR | 27.30% | 14.20% |
Outperforming the ALSI
Following the release of these results, PSG CFO Mike Smith told Daily Investor that the outperformance of the company’s shares against the JSE ALSI comes down to execution and adoption.
“A lot of it is good execution and implementation of your project’s priorities, ensuring good alignment and that you spend your time doing things that are going to have a positive impact for the business in the long term,” he said.
“Over a long period of time, it delivered very good results, and the growth in the share price and the growth in earnings have a fairly close correlation.”
He explained that the firm dedicates a lot of time to planning, then prioritises ensuring 100% adoption of that plan.
“And if you don’t get that 100% adoption, then you probably haven’t focused on what was important for your end clients to be able to grow the business,” he said.
Smith has been with the firm since 2003 and has served as PSG CFO since June 2013. This means he has seen all the plans and adoptions at PSG from the beginning.
“We’ve been focused and executing on features and rolling out things that are going to have a positive financial impact and making sure that we have good adoption,” he said.
He used the example of PSG’s advisor network as an example. This network grew in the first half of its 2027 financial year despite a challenging economic backdrop.
Since the 2023 financial year, PSG’s network has grown by 51 advisers, from 947 to 998.
Smith explained that market cycles impact talent recruitment, yet PSG managed to add 22 new wealth advisers during this tougher market environment.
This is because PSG’s extensive adviser network gives the firm a major strategic advantage, allowing it to have a presence in every province and many towns and cities across the country.
“Sometimes when the markets are a little bit tougher, it’s easier to conclude deals with people because they tend to want to hold out,” Smith explained.
“They’re very optimistic; they think tomorrow is going to be better. Sometimes, one needs these different cycles to be able to help win in other areas.”
In other words, in challenging markets, advisers face greater operational pressure, making them more willing to join PSG’s established platform to leverage its infrastructure, compliance, and brand.
Smith explained that expanding the adviser network is an immediate operational win, but said there is a time lag before the financial benefits show up in earnings.
Therefore, this hiring during a difficult time will pay dividends in the firm’s future reporting periods.
