April monthly commentary from our friends at Retirement Investments and Savings for Everyone (RISE).
RISE is an approved retirement fund administrator and has 12 bundles on our platform geared for retirement across ZAR, TFSA and RA accounts, go check them out HERE.
A word from RISE's Portfolio Manager (Duane Gilbert) on the need for a diversified portfolio.
"The events of April highlight the inherent uncertainty in investment markets and the need to hold a diversified portfolio. Broadly speaking, risks are rising – escalation in the war between Russia and Ukraine, inflationary pressures, the risk of recessions in the US and Europe, and a prolonged slowdown in China. For these reasons, we have systematically de- risked our portfolios over the course of 2022 – A decision that has benefitted our investors. Our last commentary indicated that we expect the volatility caused by global events to create buying opportunities.
The sell-off in the rand and bond market in April created such opportunities. Overall, our portfolios have taken a more defensive stance, favouring US quality equities and defensive sectors. South African equities are particularly cheap; however, one needs to carefully pick companies that can grow their earnings in a low growth environment.
Our portfolios have a high allocation to SA Bonds (where longer-dated instruments are still offering double-digit yields) and an exposure to dollar-denominated African sovereign bonds. Finally, we have introduced a position in renewable energy infrastructure projects, which are not only attractive from an IRR perspective but will meaningfully increase electricity production and reduce carbon emissions in South Africa."
To read why Duane feels this way, please read the rest of RISE's March commentary below, which is broken down under the following headings:
- 2022 Market Correction Intensified in April
- China's Zero-Covid Chaos
- Russia’s Invasion of Ukraine continues to weigh on Europe
- US Fed gets more Hawkish
- Local equities followed the global market downwards trend
- The Bond Market Ended the Month Down
If you are looking for more info on all of the RISE bundles make sure to view and compare them on our EasyWealth site.
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