PSG is rocking

PSG Financial Services reported impressive results for the year through February 2024, including 15% growth in assets under management (AUM).

PSG released its full-year results for the period ended 29 February 2024 today, which revealed strong results for the asset manager.

The firm reported a 23.4% return on equity and an 11% increase in recurring headline earnings per share for the period, following net client inflows of R23 billion. 

PSG increased its core income by 11% compared to the prior year.

The firm attributed its continued growth, delivered despite continued tough market conditions, to its ability to sustain a healthy new business pipeline, attracting inflows from current and new clients. 

CEO Francois Gouws said that this ability to consistently secure new business in a challenging operating environment is a marker of a healthy business with a clear strategy.

“The group’s proud track record of delivering consecutive earnings growth demonstrates the success of our advice-led business model and strong network of advisers – which is continuing to expand,” he said. 

“This network and its commitment to excellent client service has helped the business gain market share and has generated significant value for shareholders over the years.” 

He said this is evidenced in PSG’s total AUM growing by 15% to R406.9 billion during the year under review. This is a strong performance in a tepid environment where the JSE lost 6% of its value over the period.

The 15% increase in AUM comprised of assets managed by PSG Wealth increasing by 16% to R355.1 billion, PSG Asset Management by 7% to R51.8 billion, while PSG Insure’s gross written premium amounted to R7 billion – a 13% increase over the prior year. 

Performance fees earned constituted 2.8% (2023: 6.5%) of headline earnings.

“The firm remains confident about the fundamentals and prospects of the Wealth division and believes that our commitment to long-term relationships with clients will continue to differentiate us in the markets in which we compete,” he said.

From a cost perspective, the group’s Insure division was adversely impacted by several catastrophe events during the year, including two severe flooding events in the Western Cape and a hailstorm in Gauteng. 

However, Western National’s comprehensive reinsurance programme cushioned the effect on underwriting results. 

PSG declared a dividend of 42 cents per share, up 17% from the previous year.