PSG Asset Management on balanced fund selection and market concentration risk
Understand this event
On October 12, 2026, Business Day reported that Dirk Jooste, a fund manager at PSG Asset Management, said choosing a balanced fund with an appropriate management approach is crucial to long-term retirement savings outcomes. He said markets are experiencing the end of the era of cheap money, and global bonds can no longer automatically serve as a diversifier for equity portfolios. Meanwhile, technology’s share of the MSCI ACWI has risen from about 10% to roughly one-third, while the shares of energy and materials have fallen from about 20% to around 8%.
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Impact and actions
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Fund manager warns that stock-bond diversification may be failing and technology indexes are becoming concentrated
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Impact level
⚪ Background
What happened
On October 12, 2026, Business Day published an opinion article by PSG fund manager Dirk Jooste, who argued that the era of cheap money may be ending and that global bonds may not automatically diversify stock risk. The article says the MSCI ACWI technology weighting rose from about 10% to around one-third, while energy and materials fell from about 20% at the end of 2007 to about 8%. It provided no independently verified data. [1]
Involves:Balanced fund
Seller impact
- InferenceAt the macro level, the author links higher, less predictable inflation to a decline in stock-bond diversification, presenting this as a structural change. This view alone cannot confirm that global financing costs have entered a sustained upward trend. [1]
- InferenceAt the micro level, if financing costs remain high, sellers who rely on borrowing to manage working capital may face cash flow pressure. The material provides no evidence on loan rates, orders, or inventory, so it is not possible to estimate the increase in costs or determine whether sellers can raise prices. [1]
Suggested action
If you need to borrow to manage working capital, check whether current financing quotes have risen since the previous period, then assess the impact on cash flow.
Evidence that would disprove the assessment
- Assessment 1：Over the next two weeks, verify this by checking the latest inflation, financing-rate, and stock-bond correlation data. If they do not support this direction, this assessment should be downgraded.
- Assessment 2：Verify actual financing quotes over the next two weeks. If rates fall or companies have no borrowing exposure, this transmission mechanism does not hold.
Coverage timeline
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- Business Day International BusinessOriginal ↗PSG Asset Management fund manager Dirk Jooste: Choosing the right balanced fund is key
Dirk Jooste, a fund manager at PSG Asset Management, says choosing a balanced fund with an appropriate management approach is crucial to long-term retirement savings outcomes. Markets are experiencing the end of the era of cheap money, global bonds can no longer automatically serve as a diversifier for equity portfolios, and technology’s share of the MSCI ACWI has risen from about 10% to roughly one-third, while energy and materials have fallen from about 20% to around 8%.
Interest trend for this event
Current interest 3·Comparable scope peak 10（10/12 12:00）·Change over 24 hours within comparable scope -49%
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