PSG Konsult ekes out earnings growth despite rotten market
JSE-listed wealth and asset management outfit attracts strong client inflows even while local equities flounder
PSG’s JSE-listed wealth and asset management unit PSG Konsult said it will stick to its strategy of growing existing businesses following its strong performance in the year to February. Headline earnings per share rose 4% to 44.6c as total assets under management increased 8% to R222bn and assets under administration rose 5% to R422bn.
“We often get asked if we plan to be acquisitive but we don’t envisage that right now. We still managed to grow when most life insurers’ earnings were down and I think we can attribute that to us being highly focused,” said PSG Konsult CEO Francois Gouws.
Gouws said achieving double-digit growth in profits when the market is falling would have been impossible. He said if it was not for the company’s highly focused strategy, equity market losses would have caused its profit to fall. (The JSE all share index dropped more than 11% in 2018.)
What helped the company’s earnings growth were strong inflows to its wealth and asset management businesses. The wealth business had R10bn of new inflows and the asset management unit increased clients’ assets under management by 11% to R47bn.