In this newsletter, we share key insights from the 2023 National Budget, to enable you to help your clients make the right decisions when it comes to achieving their financial goals.
Resilient investors have a long-term investment perspective and are able to stay calm and make rational decisions even during times of market uncertainty and turbulence. In these volatile times, we can learn a lot from resilient investors. Firstly, they remain patient and stay invested for the long term. Secondly, they are disciplined, as they have a well-defined investment strategy and stick to it, even when the market is volatile. Lastly, resilient investors focus on the underlying fundamentals of companies and assets rather than short-term market fluctuations.
This year, I challenge you to display the same characteristics of patience, discipline, and focus, as the resilient investor, to all areas of your life. By embodying these characteristics, you may find that you are better equipped to weather any storm and achieve long-term success.
Our flagship Global Equity Fund is a top-quartile performer over all investment periods. Majority of our multi-asset funds managed by Old Mutual Investment Group are showing above median performance over the 3-year period, with Stable Growth and Maximum Return Funds being top quartile over that period. The Maximum Return Fund of Funds managed my Old Mutual Multi-Managers is also top quartile over the 3-year period, with Old Mutual Multi-Managers Aggressive Fund of Funds being above median over the same period.
Watch our experts share their insights on the 2023 National Budget, from investing responsibly to contribute to a just energy transition to the importance of investor’s maintaining a diversified portfolio, that can withstand various market cycles.
Most people think of the Budget as a speech, but it is actually a 280-page document containing eight chapters, six addenda and three explanatory memoranda. In the legal-technical sense, it is also a set of bills tabled for Parliament to approve. It contains a bewildering array of numbers, tables, and charts, denoted in millions, billons and even trillions. There are projections, actuals, ratios, and percentages in spades, some of it in calendar years, and the rest in fiscal years. Eyes glaze over a few pages in and it is easy to get lost, distracted or confused.
The global Islamic funds market has grown by over 300% to nearly $300bn over the past decade, with growth exceeding that of the broader mutual fund industry. Old Mutual's Shari'ah funds have almost 30% of non-Muslim investors, suggesting that these investments appeal to a broader investment universe beyond Muslims.
With South Africa firmly in the throes of crippling electricity blackouts, the 2023 Budget was always going to be judged on its ability to table a comprehensive solution to Eskom’s debt overhang while still credibly committing to fiscal probity.
In this special edition of Fundamentals, we unpack Old Mutual Investment Group’s Investment Outlook for 2023, offering varied investment perspectives from across our investment capabilities of what the year ahead could hold and where to find returns for the resilient investor who is looking to ride out the storm.
