September 2024 was an active month for global markets, driven by decisions from central banks, inflation trends, and economic events. The Federal Reserve and South African Reserve Bank (SARB) lowered interest rates, impacting stocks and bonds. While inflation eased in several regions, concerns about global politics and rising energy costs remained. Investors faced mixed results across different markets and types of investments.
OIG’s Capital Edge Portfolio strategy offers investors a low-risk and stable long-term total return while allowing regular withdrawals. The portfolio will predominantly invest in interest-bearing investment products, while also making use of up to 30% hedge funds.
August was marked by significant volatility across global markets, driven by various macroeconomic developments. While most financial assets managed to recover by the end of the month, the performance varied significantly by region and asset class. Below, we provide a breakdown of the key developments in each region.
The Two-Pot Retirement System represents a significant shift in the South African retirement landscape. Financial advisors will play a crucial role in educating and guiding investors through these changes, ensuring they can make informed decisions that secure their financial future. Investors are encouraged to seek financial advice when making decisions regarding possible withdrawals.
July 2024 saw strong market performances driven by easing inflation and favourable economic policies. In the US, inflation moderated to 3.0% year-over-year, leading the Federal Reserve to maintain interest rates, with potential cuts expected.
Capitec, Cashbuild, and the NHFC's Zakhelikhaya project offer affordable, customizable homes for first-time buyers in Gauteng with incomes between R3,500 and R22,000, aiming to boost homeownership and address housing shortages. In Cape Town, the Shoprite Group is pioneering renewable electricity wheeling at its Brackenfell headquarters, using excess power from Checkers Hyper Brackenfell, sold by Enpower Trading, to reduce reliance on the national grid and advance its carbon neutrality goal by 2050. Meanwhile, TotalEnergies has scrapped its gas-condensate projects at Brulpadda and Luiperd off South Africa's coast, finding them too costly and challenging. The $400 million investment and 1 billion barrels of estimated hydrocarbons were deemed unviable, impacting South Africa’s gas-to-coal shift plans. Additionally, TotalEnergies will exit a nearby oil block but continue exploration near Namibia.
June 2024 presented diverse economic developments and market performances across various regions and asset classes. This report provides insight into the significant movements, key sectors, standout equities, and broader economic trends that shaped the financial landscape during this month.
President Joe Biden announced he will not seek re-election in 2024 and endorsed Vice President Kamala Harris as the Democratic nominee. On the S.A. front, President Cyril Ramaphosa signed the Pension Funds Amendment Bill, initiating the two-pot retirement system. Meta Platforms is negotiating a 3-5% stake in EssilorLuxottica to advance its smart glasses development.
Pick ‘n Pay has awarded CEO Sean Summers four million shares, potentially worth R200 million, contingent on achieving leadership, succession, and financial targets. Positive sentiment grows as the new Government of National Unity addresses corruption and operational inefficiencies. Following the attempted assassination of Donald Trump, global markets have reacted with increased volatility and a shift towards safe-haven assets. Meanwhile, foreign investors show renewed interest in South African government bonds, driving significant net purchases.
Shoprite has introduced an online shopping and bulk delivery service for small businesses, including spaza shops, with free delivery within 50km. Bidvest is restructuring its financial services division, planning to sell Bidvest Bank and FinGlobal, aligning with its strategy to focus on automotive services. The new two-pot retirement system, effective 1 September 2024, aims to enhance retirement savings by splitting contributions into accessible savings and retirement components, despite initial delays in payouts.
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