The 10th edition of our annual Long-Term Perspectives (LTP) was recently published and continues to be an informative and insightful source of information. There are key themes identified by tracking investment market performance for over 90 years and draw investors’ attention to the long-term patterns in asset class behaviour, while putting shorter-term volatility into perspective. Look out for the LTP webinar in August, where Graham Tucker will share informative lessons that we believe empower the long-term investor.

President Ramaphosa signed into legislation the Revenue Laws Amendment Bill of 2023 which will formalise the introduction of South Africa’s two-pot retirement system on 1 September 2024. The objective is to encourage long term preservation of retirement savings whilst enabling access to a portion of clients’ investments in times of financial distress, limited to once a tax year. As Old Mutual, we encourage investors to take a long term view. There are several myths about the new system and Gontse addresses some here.

The most notable performance was recorded from the Old Mutual Global Equity Fund, which showed top quartile performance over all investment periods. The Old Mutual MSCI World ESG Index Feeder Fund and Old Mutual SA Quoted Property Fund are also showing top quartile performance over all periods depicted. The Old Mutual Core Balanced Fund is also top quartile over one and three years. Over the short term (one year period), the Old Mutual Core Moderate Fund, Old Mutual Mid and Small-Cap Fund and Old Mutual Income Fund have showed top quartile performance too. Several multi-manager funds as well as the Old Mutual Core Conservative Fund, are now above median for one year.

Following South Africa’s recent elections, a Government of National Unity (GNU) has been formed due to the ANC losing its majority. The speaker and deputy speaker were elected, President Cyril Ramaphosa has been re-elected and key cabinet positions recently announced. The GNU aims to stabilise the political landscape, already boosting market confidence, and is prioritising economic growth and private sector involvement to address logistical challenges. Meryl Pick and Jason Swartz reflected as events unfolded and shed some light on the elections and investments.

Meet Veekash Ramowthar, the Business Development Manager for Old Mutual’s Investment Group Retail Distribution. Veekash brings a wealth of experience and expertise to his role, shaping strategies that drive growth and innovation in client services. Beyond his professional accomplishments, Veekash shares info about his career journey and background, revealing a multifaceted personality.

The Centre for Affordable Housing in South Africa (CAHF) reports a high demand for affordable rental housing, especially in Gauteng. Futuregrowth is tackling this by investing R2 billion, with another R1.05 billion planned. Partnering with Africrest Properties works because they provide quality, affordable rentals whilst integrating marginalised households into urban areas with essential amenities.

Busi Ngqondoyi, Head of Properties and Hedge Funds at Old Mutual Multi Managers, looks at why local investors who are concerned about how a changing socio-political environment may adversely affect their investment portfolios are increasingly turning to the absolute return and downside protection promises of hedge funds.

We are excited to announce that Old Mutual Unit Trusts has launched the Old Mutual Global Managed Alpha Equity Feeder Fund as part of our fund range. This unit trust fund (available in ZAR) is fully invested in the Old Mutual Global Managed Alpha Fund, which has a five-star performance rating from Morningstar. The Old Mutual Global Managed Alpha Equity Feeder Fund is a unique addition to Old Mutual’s range of global unit trust funds as it offers exposure in both developed and emerging markets. The fund is managed by the South African investment team at Old Mutual Investment Group, with co-portfolio managers Warren Mcleod and Reza Fakie, as well as Mario Fisher, Head of Quantitative Investment Research.

Our investment process revolves around our unique systematic model which evaluates six broad market factors – value, growth, quality, momentum, size, and volatility. Leveraging this insight, our model carefully crafts a diversified portfolio that is tailored to capture exposure to these important factors. Throughout this process, we prioritise a portfolio construction approach that aims to consistently produce the optimal blend of risk, liquidity and expected excess returns.

The Old Mutual’s Global Islamic Equity fund tops in the latest Alexforbes Shariah report, highlighted in City Wire SA. The fund’s strategic investments in US mega-cap tech stocks have significantly bolstered its performance.