Investments Notes

South Africa’s Credit Rating: Reprieve or Relief?

The classic disclaimer that past performance (or even a lack thereof) does not guarantee future success (or lacklustre returns), now holds true as much as in the past. This means that past averages cannot be expected to predict with great conviction certain outcomes. However, this article expresses our view of what the recent credit rating (non-)event means to our portfolios. In short, it is our opinion that recent below average performance might not be expected in the next business cycle. Although we briefly introduce our views on other macro risks such as an expected synchronised slowdown in global developed economies and potential recessions, this article will focus on credit ratings applicable to South African bonds.

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Time to manage RISK

Some retirement fund members may have noticed that the value of their retirement savings has not increased much over the past year. These members are worried and unsure why their savings are not growing. As the growth is not satisfactory, the questions in their minds are:

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