Local investment update: Always pay the right price

Jacques Plaut and Duncan Artus discuss the positioning of our equity and multi-asset funds given the pre-existing trends exacerbated by the war in Ukraine. These trends, which we have been discussing for some time, include higher realised inflation, higher global interest rates and an increasingly divided world geopolitically. The offshore portion of our asset allocation funds has been well positioned for these changes.

The surprise to many clients and investors was how well local assets performed in the first quarter of the year. It is not often that the rand strengthens during a global crisis. We examine the reasons for this strength, what it has meant in terms of the makeup of our portfolios, and how sustainable it is. Lastly, in the context of the global sell-off in technology shares and its large weighting in most local portfolios, we take a closer look at Naspers post its 50% decline.

Read full article on: https://www.allangray.co.za/latest-insights/local-investing/local-investment-update-always-pay-the-right-price/

June 15 2022 By Duncan Artus and Jacques Plaut - Allan Gray