Renzi Thirumalai

Multi-Asset Team Q1 2025 outlook

Market sentiment swung to both sides of the pendulum during the course of 2024, shifting from early optimism to mid-year caution, and finally stabilising towards a more balanced outlook. Geopolitical tensions and global macroeconomic challenges drove volatility, but pockets of renewed optimism emerged as risk-on assets gained traction.

Monetary policy remained a key theme, with major central banks balancing inflation control and economic growth. China’s stimulus measures highlighted its economic fragility, while South Africa’s political reforms and interest rate cuts bolstered market confidence.

Following the SA elections, foreign interest in under-owned South African assets was revived. Interest was further driven by attractive valuations, high yields, and improved political stability compared with some emerging market peers.

Our current positioning remains closely aligned with our strategic asset allocation benchmarks, maintaining a slight defensive tilt. Fixed income is favoured over equities on a risk-reward basis, and SA assets are preferred over offshore assets.

‍