Performance As in the previous two years, there were several macroeconomic challenges during 2022. Global growth slowed markedly in the wake of the pandemic as supply chain issues continued to impact markets worldwide. This was exacerbated by steep increases in food and energy costs, primarily driven by the Russian invasion of Ukraine and the ongoing conflict that ensued, as well as China’s restrictive zero COVID-19 policy. Internationally, inflation rates remained stubbornly high, while the average annual inflation rate of 6.9% at home pushed up the cost of living significantly. Together with the effects of the ongoing power supply crisis, this had a very real impact on both individuals and businesses. Despite operating in this environment, PPSI had another exceptional year. Assets under management (AUM) increased from R54.0 billion to R66.67 billion, which saw the business exceeding its five-year goal of doubling AUM from R30 billion to R60 billion. Over the same period, we more than doubled the number of investors to 61 460. Gross inflows increased by 9% to R7.71 billion and net flows bucked the downward industry trend increasing 21% to R3.3 billion. Profit before interest and tax increased from R98.0 million to R121.2 million, making this a milestone year for the business. More than ever, investing in a diversified portfolio that can deliver on its investment objectives despite negative sentiment and large-scale selloffs proved its value. The key benefit of our multi-manager investment approach is that we can combine different but complementary manager strategies, enabling us to ride out short-term reversals and perform well in various environments. About PPSI is an established asset management business with an excellent 15-year performance track record. We manage a diversified range of single- and multi-managed funds, locally and offshore. Our investment process is designed to identify the optimal asset allocation and select exceptional asset managers who are expertly blended to meet the unique investment needs, risk appetite and time horizons of our members. Members benefit from our asset management capability in two ways: through their individual investment portfolios and their PPS Profit-Share Account, which PPSI also manages. Our investment platform provides a range of investment solutions for pre- and post-retirement and wealth creation, enabling members to meet specific goals across their life stages tax-efficiently. Members who hold qualifying PPS life products can earn additional Profit-Share allocations when they take up investment solutions from PPSI and invest in one or more of the PPS unit trusts. These Profit-Share allocations are further enhanced through the PPS Profit-Share CrossHoldings Booster. Uniquely, investing as a family with PPSI provides additional benefits. Once a family is linked, their combined assets are applied to our sliding administration fee scale. The more assets the family invests, the more everyone in the family can benefit. Additionally, members can link the assets of their non-member family and earn additional Profit-Share allocations on those assets. UP by 9% to R7.71 billion Gross inflows Net flows UP by 21% R3.31 billion UP from R98.4 million to R121.3 million Profit before interest and tax (PBIT) Morningstar ratings: 3 funds = 5 star 2 funds = 4 star UP from R54.03 billion to R66.67 billion Total assets under management UP by 10% to 61 460 Number of investors PPS INVESTMENTS (PPSI) 35 PPS Group performance at a glance
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