March 2022 Update
F&A Monthly Update | March 2022
It sure is difficult to comprehend the consistency with which KZN has been hit by unreal events. Each in isolation would be difficult, but to go through Covid, looting and now flooding all in three years promotes a Biblical feel. Us Durbanites were already tough cookies, so these events can only make us stronger!
Our thoughts and prayers go out to all those who lost loved ones and suffered damages over the past week and a bit. There were a couple difficult losses within our client and friend base and our love goes out to them especially! Sadly, there are many still without basics such as water and electricity. Please check in on your friends and family during this time, it is not natural to have this level of stress and there will be many if not all that require additional support even when they say they don’t.
The markets continue to be jittery, especially with the uncertainty around Russia / Ukraine as well as energy prices worldwide. Brendan shares more on this below, enjoy!
Sending love
Richard and the F&A team
March 2022 Update
This month's piece is compiled by Brendan de Jongh, SA Head of Research - PortfolioMetrix.
LOCAL UPDATE
South African (SA) growth assets continued to drive SA portfolios with SA property leading the way followed by local equity. SA Bonds and cash performed reasonably over the month as the SARB tightened financial conditions by raising rates. The 10-year SA government bond yield rose marginally ending the month at 9.6%.
Global asset class performance in rands struggled due to the local currency broadly strengthening over the month. Global bonds in particular were hard hit as the asset class suffered under rising yields globally as well as the strengthening of the rand.
GLOBAL UPDATE
March saw the world coming to terms with the atrocity of war in Ukraine but was heartened by the resilience of the people of Ukraine. There was a glimmer of optimism towards the end of the month as Russia seemed to signal that their ‘military operation’ was nearing an end. Actions speak louder than words though and markets remain on edge. This uncertainty continued to push energy prices upwards, extending inflation’s surge globally. The US and UK central banks both raised interest rates in March and markets meaningfully brought forward and increased expectations for further rate rises across the world. Equities tentatively recovered (especially energy-exporting countries) as the month progressed, whilst bond prices continued to fall.