Jaco-Chris Koorts

The Glacier Invest asset allocation team recently conducted its monthly asset allocation review and increased our South African equity allocation from moderately overweight to strongly overweight. This was mainly on the back of strong expected earnings growth for SA equities, leading to a very healthy return expectation over the next two years. 

As a balancing item, SA-listed property was moved from neutral to moderately underweight due to property also adding equity-like risk to an investor’s overall portfolio. 

On the global side, there were no changes to the tactical outlook. We remain constructive on global developed market and emerging market equity over the longer term on the back of inflation beating long-term earnings growth forecasts, although the expectation is for SA equities to outperform their global counterparts in the shorter term.

Overall, the team retains a neutral to moderately underweight position on our overall offshore exposure.

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