Increased awareness of PPS Investments’ products amongst individual members ensured a comfortable pace of growth in the year that marked the eighth anniversary of the business.
By year end a total of 28 500 individual members held investments products (up from 24 000 in the prior year).
Two new unit trusts – the PPS Balanced Index Tracker Fund and the PPS Global Balanced Fund of Funds – were launched towards the end of 2015 to offer investors diversification across investment styles and geographical focus.
Institutional and retail assets under management and administration increased to R21,7 billion, up from R18,9 billion, bucking the trend in the industry where inflows were subdued.
Retail funds under management increased from R11,6 billion to R14,8 billion on the back of new client inflows of R3,5 billion, up from R3,1 billion in the prior year.
Despite disappointing global and local economic growth, 94% of the assets invested in PPS unit trusts achieved their mandated investment returns over respective specified investment periods.
The local stock market ended the year flat, however the cautious positioning across the range of unit trusts provided welcome protection from market volatility late in the year, and the portfolios are considered to be well positioned at the beginning of 2016 should protect against anticipated increased volatility.
Key to the success of the business is attracting new clients and to continually improve service to members. A sizeable investment was made to improve customer relationship management to reflect the client-centric focus of a mutual company.
In December 2015 the client administration was seamlessly migrated onto a global administration system, thereby consolidating all our outsourced administration services at leading local administrator, Maitland Fund Services.
In January 2016 PPS Investments launched the PPS Tax Free Investment Account for graduate professionals and the OPN Tax Free Investment Account for all other discerning investors. The flexible tax-free investment account allows contributions up to a maximum of R30 000 per tax year and R500 000 over an investor’s lifetime. The contributions are not tax-deductible, but the growth is completely tax-free as investors do not pay tax on dividends, interest income, on withdrawals or switches.
PPS Investments has contributed to the PPS Profit-Share Accounts of its investors for the fourth consecutive year. The aggregate contribution to the PPS Profit-Share Accounts increased by 14% year on year.
Individual clients currently represent 30% of the total members of PPS, which presents scope for growth by attracting more members to benefit from comprehensive financial plans including investment and savings products in conjunction with life products to meet the full financial needs of PPS members.
PPS Investments is committed to the value proposition to members: to achieve their medium term savings goals to assist as many as possible to retire how they want to, when they want to.
|PPS INVESTMENTS||KEY INDICATORS||2015||FIVE YEAR REVIEW|
|PPS Investments is a 100% owned investment company that offers retirement and savings products to PPS members.||Total assets under management||R21.7 billion|
|New business: flows||R3.5 billion|