Carla da Waal

Global markets have remained volatile this year, driven by shifting interest rate expectations, geopolitical tensions and trade policy uncertainty. Proposed policy changes by US President Donald Trump, including tariffs, tax reforms, deportations and deregulation, kept market participants guessing, as the extent and pace of implementation will be critical in shaping global market dynamics over the coming months.

Locally, improved investor sentiment, moderating inflation and early signs of progress on structural reforms have supported asset class performance. In the year to date, South African equities have been among the best-performing asset classes, outperforming developed markets and other emerging markets. Local bonds and listed property are also on track to deliver double-digit returns.

Growing client wealth at consistent rates above inflation requires both yield and growth – outcomes that are best achieved through diversified exposure across a broad range of risk and income assets.

Diversification remains a fundamental pillar of our investment philosophy, enabling us to balance opportunity with resilience across market cycles.

While we aim to look past short-term noise and remain focused on long-term outcomes, the current environment of heightened uncertainty inevitably brings increased volatility. The prudent approach is to stay close to our strategic asset allocation benchmarks while maintaining a slight defensive tilt.

Holding elevated levels of local and offshore cash reflects this cautious positioning but also provides the flexibility to take advantage of opportunities as they arise in volatile markets.

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