Introduction - Angles & Perspectives Q1 2025

Introduction - Angles & Perspectives Q1 2025

Deal or no deal?

Global markets have been rocked by each latest instalment in the global trade war saga. And while many investors’ instincts may be to sit out this uncertain time in cash, exiting equity markets could mean missing out on a sudden market rally. US bond markets too have behaved uncharacteristically, causing their fair share of concern and raising questions about whether they are set to retain their safe-haven status.

However, the world does not stop turning just because global superpowers are upending a long-established world and economic order. This means that investors need to keep their long-term objectives in mind and navigate stomach-churning market movements while reliably growing their wealth in the long run and in real terms.

Our 3M investment process positions us well to help our clients navigate this challenge. Our independent research not only helps us to select quality assets at a discount to intrinsic value, but also to position our portfolios with future challenges in mind. By being forward looking, we are continually seeking to uncover overlooked gems, even as market conditions continue to evolve.

In the first article, Fund Manager Shaun le Roux explains that it is policy that matters in the world of politics, not rhetoric. In Positioning portfolios for policy changes: a fragile GNU and a new world order, he argues that we have seen no material change in policy direction in SA, while the US is undertaking some of the most dramatic policy changes of the century. Importantly, significant policy risk has been priced in already by the SA market, while investors appear to be extremely complacent about the risks in US markets.

Next, Head of Equities Justin Floor highlights that it is possible to find equity opportunities that are not dependent on the performance of the broader market. In The catalyst and the case: Unlocking equity returns through special situations, he dives into more detail on such opportunities, and how they add to our overall portfolio returns.

Fund Manager Dirk Jooste argues that with markets set to remain volatile for the foreseeable future, investors need to carefully consider retaining a meaningful allocation to growth assets, even as they seek to limit volatility in their portfolios. Read more about How the PSG Stable Fund targets an asymmetric return profile in the final article.

We trust that you will find these articles insightful, and their guidance valuable in these turbulent times.