Sanlam Investments fund update series – H2 2022
Our active management team provided an overview of their Sanlam Investment Management (SIM) funds and how they performed in the second half of 2022. In addition to a macroeconomic overview, the team also provided fixed income, absolute return, balanced and equities views. Watch the post-event webinars below for more information on the fund performances:
Below is a summary from the fund update webinars:
- It is important to understand fundamental drivers of inflation and why there is still upside risk to interest rates. The central role played by the SA Reserve Bank in anchoring inflation expectations and the rand was also covered in the macroeconomic webinar.
- The Fixed Income Funds performed well to protect capital and deliver performance to clients in 2022, one of the toughest years on record in global and local financial markets.
- Locally, the economy and markets still face a number of headwinds. However, the performance outlook appears quite favourable given that a lot of bad news and risks are priced in, and valuations are still looking quite attractive.
- The Funds are positioned to take advantage of the attractive returns and investment opportunities available, however we are cognisant that volatility will still be around for some time and as such have positioned accordingly.
- With Absolute Returns, 2023 could be another challenging year for risky assets, as not least recession risk looms. The appealing aspect in SA is that money market and bond yields are back to pre-Covid levels, providing a notable margin of safety.
- The SIM Balanced Fund strategy worked well during 2022 in a volatile market and the combination of asset allocation, stock selection and risk management added value.
- It was again a testing time for equity markets given all the macro uncertainty in 2022. We’ve experienced volatile markets before and investors were reminded on the importance of investing for the long term. There were several material issues that emerged throughout 2022 but not withstanding these, markets ended the year positively from a return perspective. Our General Equity Funds had a reasonable year in 2022 and continue to exhibit excellent long-term performances.
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