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March Market Commentary from RISE

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March 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.

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"The events of March 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 a US recession and a slowdown in China. For these reasons, we have de-risked our portfolios by increasing our allocation to USD Cash. We believe that the volatility caused by global events will create buying opportunities for patient investors.

Overall, we have also taken a more defensive stance in our portfolios, favouring developed markets over emerging markets, and US quality equities over Europe and Japan. Higher commodity prices and South Africa’s isolation from the war have supported the rand and SA equities. However, risks to the rand remain to the downside and we have used the recent period of rand strength to increase our offshore exposure. 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  nfrastructure 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:

  • Poor quarter for global equities
  • Higher energy prices, global inflation and fears of a recession
  • Chinese growth under pressure
  • Local equities had a strong performance in March
  • The JSE All Bond Composite (ALBI) ended the month up
  • Repro Rate increases due to the rise in global oil price

RISE March commentary

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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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an employee of EasyEquities an authorised FSP (FSP no 22588) as general market commentary and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.