Q3 2021 Update & Fund Commentary

We recently attended our first school sports fixture in some 18 months. Our son, Ezra (14) played in a mixed hockey tournament up at Kearsney. I’m not sure if the parents or the kids were more excited to be out and about again! The vibe was incredible! Not even the cold, misty weather could deter anyone! Ezra was especially eager. So keen in fact, that he asked us to please give him and his team (which also included girls) some “space”! Typical teenager... But it was great that he got to mingle and have some fun.

A relieving wave of normality washed over us all that night. We are seeing this return to normal almost globally now and with a more cheerful Christmas around the corner, I think it is high time and very important that we all remember to have some good old fun!

I have noticed this strain amongst our clients. At times, it is difficult to pinpoint the exact thing that has impacted us. My view is that it is just an erosion, a combination of many factors over time. That is why it is so important we look after ourselves!

WEALTH

The origin of the word Wealth comes from middle English, derived from Well and Health.

The initial emphasis of the word was on an individual’s wellbeing. It wasn’t until the 1400s that it started becoming associated with money. Contrary to how we sometimes feel, we in fact live in an age with unprecedented abundance. Imagine the sums that kings from previous centuries would have paid for today’s plumbing, transport, communication, or medical care. Things we take for granted now!

So amongst all the things that genuinely have affected us, we need to prioritise our overall wellbeing, our wealth. Hopefully, off the back of a great summer break, we can all tackle 2022 with a renewed hunger for life!

Very happily, the portfolios have performed very nicely, with our most conservative portfolios returning some 10% over the past 12 months, right through to our most aggressive portfolios at 25%. A lovely cherry on top of a tough period for us all!

Please see the below detailed report from Brendan covering our analysis of Q3!

This piece was compiled by Brendan de Jongh, SA Head of Research at PortfolioMetrix.

Towards the end of the third quarter of 2021, global equities saw their first sell-off in about a year as fears emerged that China’s heavily indebted property developer Evergrande Group might lead to the collapse of China’s systemically important real-estate market, as well as major central banks starting to indicate tighter monetary policy than markets expected. More generally, the quarter saw markets begin to worry more seriously about ‘Stagflation’, the worst of all worlds in the form of lower growth (stagnation) and rising prices (inflation). The previous narrative of reflation faltered as growth numbers softened, whilst reported inflation kept on rising.

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 2021