The Netherlands general election, held on 15 March 2017, was not expected to rattle markets. And it hasn’t. It was assumed that even if the Party for Freedom (PVV), which opposes immigration and the euro, won the election it would not garner sufficient votes to govern as the remaining mainstream parties, which are unlikely to affiliate themselves with the PVV, would effectively rule through a coalition
The US Federal Reserve’s decision on 15 March 2017 to increase the target range for the federal funds rate by 0.25% to 0.75-1.0% was widely anticipated. It is clear from the Federal Open Market Committee (FOMC) statement that the hike reflected the satisfaction of the Committee with the continued progress of the economy, notably the firmness of jobs growth amid a moderate medium-term GDP growth outlook.
ASISA recently released the latest statistics showing which funds, asset classes and managers investors are entrusting their money to. The SA unit trust industry’s 2016 statistics reveal a few interesting long-term investor trends and also knee-jerk reactions to current markets. Carl Roothman, head of Retail at Sanlam Investments, highlights some of the trends observed.
February was an exceptional month for international markets – one in which we saw most major indices explore new territory. Early in the month the Nasdaq Composite Index reached a new record, despite a tumble by General Motors and oil-driven businesses. Mid-February the Dow Jones Industrial Average, the S&P 500 and the Nasdaq reached new highs for the fifth consecutive day after President Trump promised details around his proposed tax cuts and Yellen signalled that higher rates are on the way. A week later all three indices again touched a new high.
In an era of volatility and uncertainty, the world of investing often resembles a labyrinth of indecision and changing goal posts. Even the most focused investors can find themselves caught up in external noise and emotion, eventually questioning their investment choices. During periods of volatility, investors need to be able to depend on funds that have proven their ability to reduce drawdowns and potential capital loss. Volatility therefore requires effective tactical asset allocation. The Sanlam Investment Management (SIM) Inflation Plus Fund meets this need.
The year 2017 started with world leaders decisively executing on voters’ wishes. And on the European continent there are signs of economic recovery, even if it’s happening slowly. Locally, inflation has accelerated further and political tension is mounting. But despite this, the major market indices are all up.
‘We live in a world with very low interest rates, which are likely to cause very low returns from global bonds and which have changed the pricing levels on all alternative asset classes,’ says Frederick White. It is also a highly indebted world. How did we get here? And going forward, how do we attain the best of both worlds: long-term growth together with short-term protection against downside risk? Fred White, the co-manager of the Sanlam Investment Management (SIM) Balanced Fund, shares how the fund is positioned to provide investors with yield in a risk-off environment.
Investment Strategy gives investors a QUARTERLY overview of key developments in the economic and financial markets, as well as insight into a topical trend or event.
After the 21st Raging Bull Awards ceremony held in Johannesburg last night, several portfolio managers brought home awards for being first in their category. The prestigious Raging Bull Awards ceremony recognises the top managers in the South African unit trust industry, measured on their long-term performance. The winners were the SIM Enhanced Yield Fund, the SIM Small Cap Fund and the SIIP India Opportunities Fund.
Locally, the most anticipated event for December, was the potential downgrade of SA debt by ratings agency Standard and Poor’s (S&P). In the end, S&P kept the foreign currency debt rating at one notch above sub-investment grade, but downgraded the local currency debt to BBB, still two notches above junk.