Coronation, this year has won the Raging Bull Award for the Management Company of the Year for the fifth time. In their latest quarterly commentary, their market review provides some insight into their views on economic trends for the year. The full article is available on our website (click here), for your convenience we have summarised it below:
- Global equity markets maintained their strong run; MSCI returned 5.1% (USD).
- S&P Composite index at an all-time high.
- We prefer global to South African equities on a basis of valuation.
- International equity markets have rallied strongly.
- Despite this, we are still able to find the best companies trading at attractive ratings with strong fundamentals.
- We prefer emerging market to developed market equities.
- Our global balanced funds remain at the maximum 25% offshore limit.
- Locally, the JSE returned 7.2% for the past quarter, also reaching a new all-time high.
- The rand weakened by 0.9% against the USD over the quarter.
- The deterioration of SA fundamentals is a concern, namely twin deficits, manufacturing sector, lack of structural reform, & militant labour force.
- We maintain high cash holding across our balanced portfolios, providing flexibility to act when opportunities arise and when markets, which are currently overpriced, eventually correct.
- In conclusion, markets continue to grind higher, with little regards to underlying risks. We remain committed to our proven investment philosophy of focusing on investing for the long term, in order to generate the best return for our clients.
For more investor advice or if you would like us to help you start a new investment, call us on 021-794 2469 or email info@investonine.co.za
