In this edition of Inside Track, we view the world of investment through the lens of the exchange traded fund. Johann Erasmus explains why ETFs are efficient vehicles for investing in platinum; Ryan Basdeo discusses the nuances involved in choosing between different ETFs; and Wehmeyer Ferreira irons out some common misconceptions about index investing in light of a major regulatory step forward in South Africa.
This should all be read in context, November often signals the final few weeks of full-steam business activity in South Africa for the year – and 2023 has been a year of complexity and change, both here and abroad. From politics to currency volatility and central bank activity, the strong forces that move markets have been relentless.
The ongoing war in Ukraine and more recent developments in the Middle East are grave concerns for all of us on multiple levels. Economically, the post-Covid revival has continued in some markets and is spluttering in others. Here in South Africa, party politics dominate news headlines ahead of general elections next year.
Globally, inflation rates are gradually coming under control. However, not enough to suggest interest rate cuts soon. Investors are watching central bankers carefully for signs that more expansionary policies are on the cards.
South Africans desperate for some positive news as we head into the festive period might look to the International Monetary Fund (IMF). They recently raised our growth forecast from 0.3% to 0.9%. Sure, that’s not enough. But it’s going in the right direction.
In markets, Big Tech has been a standout theme for our products. Despite high interest rates internationally (usually bad news for technology stocks), the rise of AI has been a strong tailwind for the tech-heavy Nasdaq-100 in particular.
We hope you find this edition of Inside Track interesting and useful.
Collective Investment Schemes (CIS) are generally medium- to long-term investments. The value of participatory interests may go down as well as up. Past performance is not necessarily a guide to future performance. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and maximum commissions is available on request from the manager. The manager does not provide any guarantee with respect to the capital or the return of a CIS portfolio. These portfolios are third-party-named incubator portfolios. The manager retains full legal responsibility for these portfolios.
1nvest Fund Managers (Pty) Ltd is an authorised financial services provider (FSP), FSP No. 49955, under the Financial Advisory and Intermediary Services Act (FAIS), Act No. 37 of 2002. The manager of the Schemes is STANLIB Collective Investments (RF) Pty Ltd and registered in terms of CISCA. For the basis and information on awards and rankings, please contact [email protected].
