Q2 2023 Update & Fund Commentary
Our Quarterly Commentary aims to carry and share the bulk of our reflections and analysis of the previous quarter. We have aimed to provide the following different ways of working through an entire Quarter’s worth of news and data
We’ve now included a short video commentary (± 10 min) if you prefer.
The full recorded feedback session (± 1 hour), presentation slides, and a sped up scatter plot video are also linked below.
For the real meat, scroll further still and you will see full detailed commentaries on South African (45 pages) and Global markets (16 pages) and portfolios
For a recap of previous commentaries, please visit our blog.
As always, if you would like to chat more here, please give us a shout.
Sending love to you and yours,
Richard and the F&A Team
This piece was compiled by Liam Dawson, Portfolio Manager & Investment Analyst at PortfolioMetrix.
Diversification was the winner this quarter. South African market moving events were sadly negative as the bond market and the local currency came under severe pressure surrounding the Lady ‘R’ saga in May. The currency fell 10% against the US dollar in one month alone and clearly showed how politics can potentially effect economics and the markets. A partial recovery from these May-lows gave investors a small taste of what could potentially be a turning point in policy and our enduring energy crisis.
Turning our attention to global affairs, overall, the second quarter of the year saw good performance from developed market risk assets, particularly US and Japanese equities. Government bond prices flagged as interest rates rose and global commodities and commodity-linked equities (such as those in SA and the UK) continued to struggle. Equity volatility, as measured by the VIX index, fell over the quarter whilst bond market volatility remained elevated.
The tables below summarise the asset class movements over various time frames.
FIVE YEAR ASSET CLASS RETURNS MATRIX (in rand terms)
The PortfolioMetrix team has recorded a short summary video discussing a few key aspects from this last quarter. We hope this is useful to you.
If you would like to watch the full feedback session, you can do so here. Or you can access the presentation slides here. There is also a separate link to a slightly faster version of the scatter plot segment used by Liam in the feedback session.
For the full Local & Global Quarterly Fund Commentaries, please click the links below.
Local Fund Commentary
Provides a commentary on the past quarter, its events and their impacts; as well as more intimate commentary on each moving part within your portfolios.
Global Fund Commentary
Provides intimate commentary on each moving part within your portfolios.