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)...

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