April 2024 Update
F&A Monthly Update | APRIL 2024
We hope this message finds you in good spirits. As part of our ongoing commitment to keeping you in the loop, it's time for our monthly update!
These updates provide a quick glimpse into market insights from PortfolioMetrix, giving you an overview of where your investments are headed. Here's your April 2024 update!
Sending love
Richard and the F&A team
April 2024 Update
This month's piece is compiled by Ricardo Peretti, CFA® & Investment Analyst - PortfolioMetrix.
GLOBAL UPDATE
Stickier-than-expected inflation and geopolitical tension were the overarching themes for April. The US, UK and Euro area all saw more stubborn than expected inflation. This was alongside some marginally more positive than expected economic data across major markets, which caused markets to re-evaluate the timing and pace of interest rate cuts by central banks, particularly the US. In the background, further escalation of tensions in the middle east brought about further uncertainty, market volatility and higher oil prices. This all led to bond yields rising and thus prices falling. The majority of equity markets fell in sympathy as rate cut optimism faded. The notable exceptions were UK equities, which benefitted from exposure to large oil companies and dollar earnings, and Emerging Markets, driven by commodity exporters.
LOCAL UPDATE
South African (SA) equity meaningfully outperformed global equity and was the best performing asset class for SA investors, driven by a substantial bounce in the resources sector. Global asset classes, in general, experienced a currency headwind as the rand found some support and strengthened over the month. Local bonds followed the path of the rand and had a strong month after a lacklustre start to the year. Local property softened slightly whilst global property underperformed all other asset classes.