Adapting to the Changing Investment Landscape

In an engaging conversation with Shaun Ruiters, CEO of PPS Investments, he shares reflections on his first year in the role, as well as PPS's distinctive mission of empowering graduate professionals in South Africa. As a mutual company owned by its members, PPS stands apart in the financial services industry by prioritising purpose over profit, a trait that deeply resonates with Ruiters.

Ruiters offers a detailed look into the evolution of multi-management in the investment landscape. Once a largely institutional strategy, multi-management now focuses more on addressing client-specific challenges. By carefully selecting different managers and strategies, PPS builds tailored solutions for its members. Ruiters explains how this approach is particularly effective in creating pre-retirement and post-retirement portfolios, where factors like the sequencing of returns and downside protection are crucial.

Passive investments have also seen a remarkable rise, both globally and locally. Ruiters notes that South Africa has experienced rapid growth in passive portfolios, with market share increasing from under 3% to nearly 10% over the past decade. This shift has added complexity for financial advisors, who now need to choose from an even wider range of investment products. PPS supports these advisors by offering tools and solutions to help them stay relevant, focusing not only on financial returns but also on aligning investment strategies with client aspirations and personal purpose.

Key points

• Empowering Graduate Professionals: PPS focuses on building solutions that empower South African graduate professionals, reflecting its mutual ownership structure and purpose-driven approach.

• Multi-Management: Ruiters emphasises the evolution of multi-management, now more solution-oriented, addressing specific client needs in both pre- and post-retirement.

• Growth in Passive Investments: South Africa has seen a significant increase in passive investment growth, with market share rising to 10% in 2023.

• Advisors' Role: Financial advisors face more complexity, balancing between active and passive solutions. PPS offers guidance and tailored solutions to help advisors navigate these challenges.

• Purpose-Driven Investing: The importance of understanding client aspirations, including aligning investment strategies with personal purpose (e.g., ESG, education), is highlighted.