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CIO Iain Power is also aware of the need to manage risk in the current environment.
By Patrick Cairns, Citywire
17 Mar 2021 11:00
Truffle Asset Management believes the backdrop for global equities remains positive.
Several factors suggest risk assets will continue to do well, including: the extent of fiscal and monetary stimulus around the world;Â countries gaining a measure of control over the Covid-19 pandemic; a synchronised global economic recovery; growth in company earnings off a low base; and subdued inflation expectations.
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They are not very optimistic about the prospects of SA s GDP recovery but asset managers are spotting opportunities in the JSE.
Some local investment and portfolio managers who didn t favour SA shares for a long time are starting to see opportunities.
They are buying shares of companies that are taking market share from peers and companies that are not affected much by SA s GDP growth.
But which assets are they ditching?
With the globe firmly within the peak of the second wave of Covid-19 infections, and a third wave on the cards for South Africa, investors who were bruised in the March 2020 market bloodbath may understandably be jittery again. Whether these subsequent waves bring another market volatility and wipe out the recovery that came later in 2020 is a big question.
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The outlook for SA Inc in 2021
Will government opt for more of the same, or growth? The choice is stark. Either we cut spending or we refloat the economy. 00:16
South African resources and commodity stocks performed spectacularly in 2020. Image: Supplied
As well as equities performed after the Covid bounce in 2020, global equities can look forward to further positive gains in 2021, says Iain Power, chief investment officer at Truffle Asset Management, which manages the Nedgroup Investments Balanced Fund and the Nedgroup Investments Managed Fund.
The Nedgroup Investments Balanced Fund has delivered annualised returns of 11.6% since its inception in 2011, placing it well ahead of its peers. It also delivered a return of 11.5% over one year.
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