Jessica Fannin

We are positioning portfolios with a good level of diversification, while continuing with allocations that reflect our constructive view of growth assets. This is on the back of expectations for a softer interest rate environment and positive economic growth outlooks, while being mindful of unexpected macroeconomic or political risk factors.

South Africa has seen several positive tailwinds, and local bonds have been swift to price the good news in. The valuation of this asset class is, however, far less attractive than it has been, and we continue to trim exposure.

Locally, we expect performance to be broader-based than last year and active managers to benefit going forward. Offshore, we remain cautious of hefty valuations and increased concentration in technology as a sector specifically. Our portfolios are spread into emerging markets and foreign property to reduce some of the overall exposure as a result.

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