Q3 2022 Update & Fund Commentary

For those that didn’t see our announcement, we formally welcomed Branden, Rachelle and Audrey to the team just last week!

For our new readers, our quarterly mailers normally carry the bulk of our analysis of the past 3 months, complemented by our lighter monthly pieces. These commentaries are mostly investment focussed and are prepared by some of the smartest minds in the industry.

For now, grab a cuppa and enjoy the below from Brendan de Jongh, recapping Q3 2022! For a recap of previous commentaries, please see 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 Brendan de Jongh, SA Head of Research at PortfolioMetrix.

Q3 2022 was a quarter of two halves: positive at first for world markets but with falls in the second half that erased earlier gains. It was optimism that the US Federal Reserve might moderate its rate rising cycle that fuelled gains earlier in the quarter, although this optimism later soured in the face of more persistently high inflation and continued central bank hawkishness. A speech by US Federal Reserve Chairman Powell in late August reinforced messaging around the Fed’s determination to continue to raise rates to reduce inflation. They delivered on this promise with a 75bpts hike in September (this followed a 75bpts increase in July) coupled with quantitative tightening to the tune of $95bn per month beginning in September. Markets fell off strongly from the latter part of August and continued their rout through September.

The tables below summarise the asset class movements over various time frames.

**FIVE YEAR ASSET CLASS RETURNS MATRIX** (in rand terms)

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.

Local Fund Commentary | Q3 2022