Kamini Naidoo

We continue to favour local equities, where valuations remain supportive despite South Africa’s political strain and sub-1% growth outlook. While the Government of National Unity (GNU) has struggled to deliver reform, selective opportunities persist, particularly in sectors with resilient earnings.

Globally, we expect US dollar weakness to continue, which supports emerging market equities over the medium term. That said, risks to global growth are rising with tariffs and policy uncertainty weighing on sentiment, while sticky inflation keeps monetary easing uneven across regions.

Europe’s more accommodative stance contrasts with US constraints, where slowing growth and fiscal fragility limit policy flexibility. Against this backdrop, we see opportunities in diversified equity exposure, with a tilt toward emerging markets, while maintaining a cautious view on developed markets until growth and policy signals become clearer.

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