Keep calm and carry on investing locally, say Allan Gray and Old Mutual
Asset managers are not in a rush to invest offshore despite the recent global market sell-off
Despite persistent electricity shortages, rising interest rates and a rand around R16/$, two of SA’s biggest asset managers are still backing local assets despite the recent global market sell-off during which offshore valuations fell to more reasonable levels.
Allan Gray and Old Mutual Investment Group say they favour investing locally rather than chasing hard currency returns offshore at a time when global inflation and interest rates are on the rise. That is despite finance minister Enoch Godongwana’s announcement of a surprise adjustment to pension fund regulations in February, which means fund managers can now invest up to 45% of their assets outside SA, up from 35% previously (which included a 10% allocation to the rest of Africa)...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.