Tag: Old Mutual Investment Group

Dividing your savings into two separate categories – each with its own unique purpose – can provide clarity and boost your progress towards achieving your financial goals. When it comes to saving money, having a clear strategy in place can make all the difference.

Following our recent announcement that we have joined the Net Zero Asset Managers Initiative, we have highlighted the urgent need for a tangible commitment by the local asset management industry through the establishment of a South Africa-centric low carbon and socially inclusive listed equity investment benchmark.

Globally, asset managers can play a decisive role in redirecting institutional and retail investors’ capital towards achieving the decarbonisation goals set by the recent COP26 Climate Change Conference. This is our message following the conference held in Glasgow, Scotland this November, which has singled out capital, or the impactful application of capital, as a vital cog in the world’s climate response machinery.

With several companies announcing their intention to delist from the JSE in 2020, many South African investors may feel that they have a limited investment universe when considering local stocks. While this may be true, it shouldn’t hinder but reinforce the case for pursuing a local environmental, social and governance (ESG) strategy.

The case for economic recovery out of the deep COVID-19 recession has been given a confidence boost by the Government’s decisive response to the crisis. The praise being showered on President Cyril Ramaphosa’s steps taken to unlock the economy and the economic stimulus packages to address the impact of the COVID-19 pandemic should give the country confidence that we are moving in the right direction.

The South African Reserve Bank (SARB) cut rates by another 100 basis points this morning in an inter-meeting move. Rates are now down 225 bps since the start of the year, and down 250bps since July last year.

Moody’s cut both the local and foreign currency-denominated debt from Baa3 to Ba1 and retained the negative outlook. Their statement highlighted South Africa’s deteriorating fiscal situation amidst very weak economic growth, saying: 'The key driver behind the rating downgrade to BA1 is the continuing deterioration in fiscal strength and structurally very weak growth.'

Local investors should stay invested to reap strong future returns. An early decisive response to the COVID-19 threat should contain the spread of the virus in South Africa, but the economic repercussions in the short term will be costly. Local measures to contain the virus will add to an already weak economy and negative global impact.