Lubabalo Khenyane

2025 was a good year for growth assets, especially in the domestic market. Local equities soared on the back of higher commodity prices, property companies shot up and bonds rallied, driven by the lower inflation environment and SA’s removal from the greylist. Globally, equities did well in dollars but were behind SA equities. Global fixed income produced muted returns, and the stronger rand lowered returns for SA investors.

The disparities between SA and global assets tilted valuations in favour of offshore markets. This, coupled with better growth prospects, made offshore investments more attractive. To take advantage of this, our solutions lessened their allocation to SA winners like resources and long-dated bonds and allocated to global equities and bonds. While we are keeping this position into 2026, we are in the process of reviewing it.

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