We are more than halfway through the year and it has been quite a wild ride so far with international uncertainties and conflicting messages daily. The world feels uncertain but this is nothing new and short-term volatility is a normal occurrence. In this edition we look at how volatility affects you, especially leading up to and in retirement when you might feel especially vulnerable.
When markets feel volatile it’s tempting to cash out, but that’s rarely the best move. Cash plays an important role in a good financial plan but finding the right amount to have, especially at retirement, is key. Our article explores what to consider and how your choices affect you.
We also highlight the benefits of retirement funds, helping you grow wealth more efficiently and transfer it faster to loved ones when you pass away. Plus, we clear up common misconceptions about preservation funds. They’re not everyday banking accounts, but rather valuable tax-efficient tools with some flexibility in times of emergency.
With tax filing season around the corner, we are excited to bring you our new partnership with TaxTim. Find out how to benefit from our discounted partnership offer.
Our health focus is on fatigue and how small shifts in your daily routine can make a real difference to your energy levels.
Staying true to your goals is still the best approach in uncertain times. Reach out to your financial adviser if you have questions, we are here to help.
Enjoy the read.
In this issue
Understanding Volatility and its impact on retirement
Gareth van Deventer CFP®
How much cash should you take at retirement? Jaco Prinsloo CFP®
Retirement funds: SA’s most powerful tool for building and passing on wealth
Bongani Msimango CFP®
A preservation fund is not like a cheque account Trecy Tshuma CFP®
Tax Tim has launched
Beyond Tired: How fatigue shapes your life
Market Commentary Podcast
Economic and market update
Understanding volatility and its impact on retirement
By Gareth van Deventer CFP®
Retail Best Practice Specialist
What is Volatility
In simple terms, volatility refers to how much and how quickly the value of an investment moves up and down over time. If markets rise and fall sharply in short periods, they are considered highly volatile. If movements are more stable and gradual, volatility is lower.
Currently volatility is sometimes described as the “new normal,” but in reality, it has always been part of investing, it is the “same old story.” Markets naturally move through cycles of growth and decline. While this may not be a major concern during the working years, it becomes far more significant in retirement.
Why volatility matters more in retirement
Retirement is often described as one of the most rewarding phases of life, but it also presents a unique set of financial challenges. One of the most important, and often misunderstood, concepts that retirees must navigate is volatility.
Retirees rely on their investments to provide income, regardless of whether markets are performing well or poorly. This means they may be forced to withdraw money during market downturns, effectively locking in losses. Your expenses don’t reduce when the markets are down and it could happen that to maintain your income you have to draw a higher percentage from your reduced savings during bad times.
One of the most critical risks retirees face is sequence risk, which refers to the timing of market returns relative to withdrawals. Poor market performance early in retirement, where you have to draw a specific income, can significantly reduce your capital and long term sustainability. When the markets recover you have less capital that can benefit from the growth. Compare this with someone drawing the same Rand income but who retires when the markets are high. Their draw rate is a smaller percentage of the capital, which affects them less so that when bad markets happen later, their sustainability is not affected as much.
1. Drawing Income Through Good and Bad Markets
2. Sequence Risk
Extended periods of weak market performance can fundamentally impact both capital and income sustainability. Retirees do not always have the luxury of waiting for markets to recover in the same way younger investors do. It is however important to remember that retirement is most likely also a long-term investment with around three quarters of retirees living more than 10 years while 10% can live into their mid to late 90s.
4. The need for real returns
Retirement portfolios must generate real returns, (returns above inflation), to ensure income keeps its purchasing power over what could be a 30-year retirement period. To get a higher real return requires more risk in a portfolio. Investing too conservatively to reduce short term volatility can come at a longterm price when the required real return can’t be achieved. If you want to maintain your capital to leave for beneficiaries and want to give yourself inflation linked increases each year, it becomes difficult if your portfolio isn’t giving sufficient real returns.
Managing volatility: Practical solutions
The key to navigating retirement successfully is not avoiding volatility altogether but managing and controlling it effectively.
A well-diversified portfolio spreads investments across different asset classes such as equities, bonds, property and cash. You are not avoiding risk but making sure you don’t have all your eggs in one basket. The correct asset allocation will help reduce risks. For example, if you needed your assets in the next 12 months you should not consider investing in shares which can go up or down during that time. This money should be in something like a money market investment which is not affected by market movements. However, your retirement funds that you need in more than 10 years can be in more risky assets. If the markets do fall you have several years for the market to recover.
Portfolio blending
Using a multi-manager or blended approach combines different investment strategies and investment styles from various investment managers. This diversification between managers or portfolios helps reduce reliance on a single approach.
Bucket strategy
Adopting a bucketing approach if you are in a living annuity during retirement, helps reduce the effect of sequence risk and volatility. You use three different investment buckets for different purposes:
Your annual income is paid from this bucket. It invests in stable assets such as cash to provide a predictable return that should not be affected by market movements. You don’t have to sell performing units every month to generate your income, and giving the unit prices time to recover when markets went down.
This bucket increases risk slightly to achieve higher returns. It still protects the overall fund when markets are down as it tries to limit losses when the time comes. It is used to top-up the liquidity bucket on an annual basis as that depletes.
This bucket contains higher-risk assets to achieve higher returns when the markets are doing well. It should boost capital growth over the long-term but will also be affected first when markets are not doing well.
Bucketing ensures that income needs can be met without selling growth assets during market downturns. Regular (annual) portfolio rebalancing helps maintain the appropriate risk/return profile.
Hybrid annuities
Combining living annuities with life annuities (a hybrid approach) can give some income certainty while still allowing for capital growth in the living annuity. A guaranteed annuity pays you (and your joint life annuitant if you have set that up) an income for the rest of your lives. By having a portion of your income guaranteed it can improve your long-term income sustainability and help reduce longevity risk (the risk of outliving your money). The portion of your retirement money used to set up the guaranteed annuity is not subject to market volatility thus reducing the overall volatility in your financial plan. You can also specify the annual income increase pattern and whether you want your beneficiaries to receive something if you pass away soon.
Aligning risk with your needs
Understanding your risk tolerance and income requirements ensures that your expectations are realistic and aligned with the investment strategy.
Conclusion
Volatility is an unavoidable part of investing, but by understanding volatility and implementing strategies such as diversification, bucketing and hybrid income solutions, you can manage risk better and improve the sustainability of your income over the long term.
Successful retirement planning is not about eliminating volatility, it is about controlling it to ensure financial security for decades to come. Speak to your adviser to show you how.
How much cash should you take at retirement?
By Jaco Prinsloo CFP® Financial Planner Alexforbes
Taking a cash lumpsum at retirement can be tempting and driven by emotion. However, every rand you take is a rand that no longer generates income, so the key question is how much you can take without putting your future at risk.
Taking cash at retirement may make sense, but withdrawing more than you need can reduce the savings that must generate your income for the rest of your life.
The amount you take in cash at retirement affects how much income you will have for the rest of your life. The decision can be emotional and getting it wrong can weaken your long-term financial security.
For many retirees, the temptation is to take as much as possible. After years of saving, a large amount of cash feels like freedom. But every rand taken in cash is a rand no longer available to generate monthly income.
That is why the real question is not how much cash you can take, but how much you should take without putting future income at risk.
Why a large cash withdrawal can backfire
There are valid reasons to take cash at retirement. You may need to settle debt, pay for medical costs or build an emergency reserve. However, taking too much upfront can create a shortfall that only becomes apparent years later.
A larger lump sum means less capital remains invested to buy or create an annuity. That reduces the income you can draw every month.
Tax also matters. At retirement, the first R550 000 of qualifying lumpsum benefits is tax-free over your lifetime, but previous withdrawals may already have reduced that benefit.
Amounts above that are taxed on a sliding scale, which means a large withdrawal can result in a large tax liability and a smaller net amount than expected.
Longevity risk is the other major issue. Many retirees will need their savings to last 25 years or more. If too much capital is taken at retirement there is little chance of rebuilding it later.
Why preserving more can be the safer option
Preserving more of your savings in an annuity usually means a more reliable income stream. That matters because retirement is less about accessing capital once-off and more about making sure income continues every month.
An annuity helps protect retirees from two common risks: living longer than expected and spending too much too soon.
A practical way to decide
It can also reduce the temptation to use retirement savings for non-essential expenses or to support others beyond what is affordable.
Current retirement rules reflect this principle. In most cases, only part of your retirement savings can be taken in cash, while the balance must be used to secure an income in retirement. The aim is simple: to reduce the risk that retirees run out of money later in life.
A good starting point is to ask three practical questions before deciding how much to withdraw.
First, what debt should be cleared?
Paying off expensive debt before retirement can improve monthly cash flow at retirement. If this was not finalised before retirement a withdrawal will be necessary but the withdrawal still needs to be measured and tax-aware.
Second, how much should be kept aside for emergencies?
A cash reserve of a few months’ living expenses can prevent you from having to sell investments or disrupt income plans when unexpected costs arise.
Lastly, does your emergency amount allow for larger unplanned expenses later?
You will not be able to take a cash lump sum again, and a car breaking down or an operation could require cash that was not accounted for and what will you use then? Do you want to be dependent on your credit card for these?
Make sure you take enough cash
While preserving capital in an annuity supports long-term income, there is also a case for taking a measured amount of additional cash – even if it results in some tax upfront.
Having a portion of your retirement savings outside an annuity can provide valuable flexibility. Discretionary investments can be structured to supplement income in a tax-efficient way over time, allowing you to manage your overall tax position by combining different income sources.
This approach can help reduce reliance on fully taxable annuity income and provide access to capital without increasing taxable income each year.
The key is balance. Taking additional cash should not undermine your ability to secure essential income, but it can enhance flexibility if used as part of a broader income strategy.
Taking some cash at retirement may be necessary and sensible. But withdrawing more than you need can undermine the income that must carry you through the rest of your life.
The goal is not to maximise the upfront payout, but to create a sustainable income plan. Before making a final decision, it is worth getting advice on the tax implications, your income needs and how long your capital may need to last.
Retirement funds: South Africa’s most powerful tool for building and passing on wealth
By Bongani Msimango Wealth Manager Alexforbes
They are not just savings vehicles for life after work, when structured properly, they can also help grow wealth more efficiently.
Retirement funds are often seen as ‘money you’ll use one day when you stop working’. In South Africa, that view misses the bigger picture.
The two-pot system has changed how retirement funds work, allowing for a portion of contributions to be accessed before retirement while the rest remains preserved.
Here is how that works in practice.
A powerful tax shield – during life and after death
Faster access for your loved ones
A smarter alternative to trusts for income for your beneficiaries
Used well, these vehicles can help you build wealth more efficiently and transfer it more smoothly to your loved ones. They can reduce the tax drag on growth, limit estate costs and in many cases speed up access for beneficiaries.
Investment guidelines and investment flexibility
The two-pot system: Balancing access and discipline
Turning excess contributions into a legacy advantage
A powerful tax shield – during life and after death
Retirement funds (pension, provident and retirement annuity funds) offer something rare: investment growth that is shielded from tax while the money remains invested.
Inside the fund, there is no capital gains tax (CGT) when assets are sold, no tax on interest earned and no dividend withholding tax. With less tax ‘leakage’, more of each rand stays invested and can compound over time.
The advantage can be even clearer at death. Assets in an estate attract estate duty and can trigger CGT because the South African Revenue Service (SARS) treats them as if they were sold at death (a ‘deemed
disposal’). Retirement fund benefits generally sit outside the deceased estate if beneficiaries are nominated and the proceeds are not subject to estate duty or CGT.
In simple terms: more of what you built reaches your beneficiaries.
Faster access for your loved ones
Deceased estates can take months, sometimes longer, to finalise. During that time, families may be waiting for liquidity when they need it most.
Retirement fund benefits can offer a smoother path because they are not paid via the estate’s winding-up process. They also avoid executor’s fees (up to 3.5% plus VAT), which can be applied to assets administered through an estate.
Death benefits are distributed as follows:
Retirement funds: The fund trustees allocate benefits based on dependants’ needs. It can be different from your nomination form. This can take time as the trustees can take up to 12 months to confirm dependants if it is unclear who should benefit, but it is designed to be fair.
Living annuities: Nominated beneficiaries have a more direct process and can choose a lump sum, an income stream, or a combination Cash is taxed based on the deceased’s retirement tax information, up to a 36% tax rate.
A smarter alternative to trusts for income for your beneficiaries
Trusts can be useful in estate planning, but they may come with a higher tax cost, especially when income is retained in the trust, which is taxed at a flat 45%.
Capital gains in a trust are also taxed more heavily than in an individual’s name.
Although there are ways to reduce the trust’s tax liability by passing income from the trust to the beneficiaries, there is still tax on, for example, interest received and capital gains. Your beneficiaries can choose to set up a living annuity with their benefit, to benefit from tax-free growth.
Investment guidelines and investment flexibility
While you are contributing to a retirement fund, your investments are governed by Regulation 28. This rule limits how much you can allocate to different asset classes like equities and offshore assets, helping manage risk for most people.
Once you retire and move into a living annuity, the limits fall away.
This opens new possibilities. You can increase offshore exposure to align with where you live or plan to live, and you are not restricted if you want to maximise growth assets. You can only set up a Living Annuity with money from retirement funds .
The
bigger picture
The two-pot system: Balancing access and discipline
One of the biggest concerns people historically had about retirement funds is access. The money felt ‘locked away’, which discouraged some from contributing fully.
The two-pot system, introduced in 2024, has changed that dynamic.
In broad terms, one third of your contributions goes into a ‘savings pot’ that can be accessed (subject to the rules) while the rest remains preserved for retirement. The aim is to create a balance: a safety valve for genuine emergencies without derailing longterm retirement outcomes.
Used wisely, this system helps investors stay committed to their long-term plan while still having some flexibility when life happens.
Turning excess contributions into a legacy advantage
High earners often run into retirement fund contribution limits. Anything above the allowable deduction becomes a ‘disallowed contribution’, which might seem like a drawback at first.
It can be a strategic advantage.
Extra contributions are tracked and can reduce the tax you pay on your cash lump sum or your retirement income later. Over time, this can effectively make a portion of your retirement income tax-free.
Even more interesting is what happens if you pass away with unused disallowed contributions. They can reduce the tax burden on lump sums taken by your beneficiaries, allowing more capital to pass to them. The disallowed amount taken in cash is added to your estate so you don’t get away from estate duty completely but it could still be beneficial overall.
What looks like a limitation during your working years can become a powerful wealth-transfer tool.
When you step back, retirement funds in South Africa are doing far more than funding retirement. They combine tax efficiency, administrative simplicity and investment flexibility in a way few other structures can match.
Used intentionally, retirement savings can do double duty: supporting your future while also helping to protect what you leave behind. To make the most of the rules and avoid unintended tax consequences, it is worth getting the right advice from a qualified financial adviser.
A preservation fund is not like a cheque account
By Trecy Tshuma CFP® Alexforbes Wealth Manager
The aim is to keep your retirement savings invested and growing, rather than available for regular withdrawals.
Many people misunderstand what a preservation fund is. They think it works like a cheque account that they can dip into when needed but this is not the case. A preservation fund is there to protect and grow your retirement money for your retirement, not for everyday spending or easy access to cash.
When can you choose to preserve?
The rules are different for each of the pots created under the two-pot legislation. The vested pot is the money you had before 1 September 2024. The savings pot is 1/3 of new contributions after 1 September 2024 which you can withdraw once every tax year.
The retirement pot is 2/3rd of new contributions after 1 September 2024 and you can’t take this in cash; it will be used to buy your retirement income.
When you leave your job — whether you resign, are retrenched, dismissed, or retire, but don’t need access to your money, you have the following options on what to do with your retirement funds.
What is a preservation fund?
A preservation fund is a personal investment that lets you keep your retirement savings invested when you leave a job instead of taking the money in cash. The money comes from a pension or provident fund you belonged to.
Before retirement, you can make only one withdrawal from your vested pot in the preservation fund. If you have a savings component you can access that once every tax year. In both cases you pay tax when you take cash.
Taking the benefit in cash (subject to tax). You can take your savings pot and vested pot, but not your retirement pot. The tax you pay when you withdraw is higher than tax on cash at retirement.
Transferring the benefit to another employer fund. All pots can be transferred
Transferring the benefit to a preservation fund. All pots can be preserved
Transferring to a retirement annuity. All pots can be transferred
You can also leave your funds as they are in the fund, but you will not be able to make further contributions or benefit from any risk cover, like life insurance, you had while you were an active member of the fund.
People usually choose preservation funds because:
they do not need the money straight away they want to avoid paying unnecessary tax they want their retirement savings to stay invested and keep growing
they want to protect future access rights, especially to the vested pot
In short, it is about looking after your future rather than spending the money now.
Common misconceptions about preservation funds
Even with good intentions, people often make avoidable mistakes and they:
Assume they can make multiple withdrawals from preservation funds. You can only withdraw once from your vested pot before retirement, either a full or partial withdrawal but you can withdraw from your savings pot once a year.
Think they can pay extra money into the fund. A preservation fund accepts transfers from approved retirement funds but not regular deposits.
Believe they can borrow against the fund. Preservation funds do not offer loans.
A preservation fund is not a cheque account. It is not meant for regular access or day-to-day spending. Its job is to protect your retirement savings and help you retire with more money.
If you are thinking about preservation, slow down and plan carefully:
Give yourself time to think. Do not make a rushed decision just because you have left your job; the money stays in the fund until you decide.
Ask whether in-fund preservation is available and how it compares with a retail preservation fund on cost, flexibility and investment choice.
If you are considering a withdrawal, weigh your short-term needs against your long-term retirement goals. Remember that access is limited, but you can take a portion of your funds from your employer fund before transferring the rest to a preservation fund, where you will still have your once-off withdrawal from the vested pot.
Understand the tax impact. Early withdrawals are taxed less favourably than money taken at retirement, which can reduce what you end up with later. Savings pot withdrawals are taxed at your marginal tax rate and vested pot withdrawals on the withdrawal tax table. All vested pot withdrawals before retirement reduce the tax free portion at retirement.
The key point is simple: think carefully before moving or withdrawing your retirement money. Preservation funds can be a smart choice, but only if you understand the rules and how they affect your future.
If you are unsure, speak to a financial adviser who can help you make the right decision for your circumstances.
Just answer a few simple questions. TaxTim completes your return and submits it to SARS, helping you get your best possible refund.
About TaxTim
TaxTim is your smart, friendly tax assistant, backed by real tax experts. It keeps things simple, asking clear questions in plain English so you always know what to do.
Whether your tax is straightforward or more complex, TaxTim works with your situation and helps you get the most out of your return. • Simple questions • Built by tax experts • Ready-to-submit return
Quick to use. No tax knowledge needed. Done in minutes.
How TaxTim helps you
• Completes your tax return accurately
• Submits directly to SARS with no queues or paperwork
• Reduces errors through built-in checks
• Connects to SARS eFiling to pull in your documents
• Stores your information securely
• Avoids penalties by submitting on time
Submitting early can also help you receive your refund sooner.
What you need to get started
Have the following ready:
Your IRP5 from your employer
Medical aid certificate
Investment certificates (IT3B or IT3C)
Retirement annuity certificate
Donation certificates (if applicable)
Travel logbook (if you claim travel expenses)
Extra tools to support you
TaxTim also offers a free Tax Health Score, which gives you an indication of how taxefficient youmare. Based on your results, you’ll receive practical tips to help you improve your tax position and potentially increase your refund in the future.
Simple, guided and reliable
TaxTim gives you a straightforward way to complete and submit your tax return, with guidance at every step so you can do it with confidence.
If you have other tax needs, like offshore tax structuring, setting up a trust or if you prefer a more personal tax practice, speak to your adviser who can refer you to a trusted tax partner.
Alexander Forbes Financial Planning Consultants (Pty) Ltd is an authorised financial services provider (FSP 31753) and registration number
Beyond tired: How fatigue shapes your work, relationships and wellbeing
Most of us know what it means to feel tired. But fatigue is something different—deeper, heavier and harder to shake.
Fatigue isn’t just about needing more sleep. It’s what happens when your energy, capacity and recovery are slowly eroded over time. When it goes unrecognised, it quietly starts shaping how we work, how we relate to others and how we feel about ourselves.
When “just tired” becomes something more Fatigue often develops gradually, making it easy to miss in its early stages.
At first, you might notice you’re slower to focus. Tasks take longer. Mistakes creep in. You feel irritable or emotionally flat. Work that once felt manageable suddenly feels overwhelming.
Because fatigue is so common, it’s easy to minimise:
“Everyone’s exhausted.”
“I just need to push through.”
“It’ll get better once things calm down.”
But persistent fatigue is rarely random. It’s often a sign that demands are outweighing recovery— whether due to workload, stress, life pressures, health conditions or a combination of all three.
How
fatigue shows up at work
It shows up quietly: Fatigue often looks like struggling to focus, rereading emails or forgetting small details. Tasks take longer—not because of lost skill, but low mental energy.
Emotions feel heavier: Patience runs thin, interactions feel more effortful and people may seem irritable, withdrawn or disengaged—present in body, but drained mentally.
People push harder to cope: Many try to compensate by working longer hours, but this usually leads to less impact, not more and growing frustration.
Confidence takes a hit: Ongoing fatigue can chip away at motivation and self belief, making capable people question themselves when the real issue is capacity, not competence.
The risks add up: When fatigue is ignored, it can lead to burnout, mental health strain, frequent absences or extended time away from work.
Early action matters: Noticing and addressing fatigue early helps protect wellbeing, sustain performance and prevent more serious outcomes.
The impact on relationships—at work and at home
Fatigue doesn’t stay neatly contained within working hours.
When energy is depleted, so is emotional resilience. People who are fatigued often: withdraw socially become more irritable or sensitive avoid conversations they don’t have the energy for feel misunderstood or unsupported
At work, this can strain relationships. At home, it can affect family dynamics, friendships and connection with loved ones. Fatigue can create distance—not because someone doesn’t care, but because they don’t have anything left to give.
Why fatigue is an early warning signal—not a failure
Fatigue is: not laziness not poor motivation not a personal weakness
It’s the body and mind saying: something needs to change.
When we treat fatigue as an early warning signal rather than a flaw, it opens the door to prevention—before burnout, ill health or long term absence take hold.
Small shifts that make a real difference
Sleep underpins focus, emotional regulation and resilience. Regular sleep disruption makes everything harder—from concentration to coping with stress. Protecting sleep
Short breaks, movement and stepping away from screens help regulate energy. Constant “on” mode is a fast track to depletion. Building recovery into the day
Multitasking, endless meetings and competing priorities drain mental energy. Clarity and focus support both wellbeing and performance Reducing cognitive overload
Fatigue often improves when people feel safe to say, “This is a lot right now.” Early conversations prevent escalation. Normalising conversations about capacity
Seeking support early
When fatigue is persistent or worsening, support matters. Adjustments, flexibility or professional input can prevent a temporary struggle from becoming a long term issue.
Fatigue doesn’t resolve through willpower alone. Sustainable work and wellbeing require ongoing attention to capacity, recovery and support. Whether you’re an individual, manager or organisation, noticing fatigue early is a powerful prevention strategy—not a sign of failure.
Macroeconomic and market developments
Watch the commentary here
Global strategy (returns in US dollars) South African strategy (returns in rands)
While the global economy remained broadly resilient in the first quarter (Q1), the Middle East conflict’s drag on activity will become more evident from Q2.
Oil prices increased drastically after the hostilities started but have steadily dropped recently. The effect of the reduced prices might not be felt immediately.
High energy prices are feeding into inflation across the US, the Eurozone, and emerging markets, raising expectations of rate hikes and shifting the focus to how aggressive those hikes may be.
Global equities extended April’s relief rally through a volatile May. Emerging markets led, while developed market performance was more measured.
A volatile May saw emerging market bonds and credit outperform, while developed market sovereigns lagged on sticky US inflation.
Domestically, headline inflation accelerated markedly to 4.0% y/y in April from 3.1% in March, driven mainly by higher fuel prices as the effects of the Middle East war began to filter into the local economy. A stronger than expected core reading also heightened concerns about second-round effects, prompting the SARB to deliver a pre-emptive 25bps hike in May and revise its inflation outlook upward.
Encouragingly, South Africa’s credit outlook improved, with Moody’s upgrading its outlook to positive and S&P maintaining a positive outlook, signalling confidence in fiscal consolidation. Both agencies also expect debt ratios to improve, supporting prospects for future ratings upgrades.
SA equities recorded a modest decline, with headline performance masking wide sector dispersion. Financials gains came ahead of the SARB hike, supported by healthy loan growth; resources were mixed, and IT continued to drag the index amid global tech de-rating.
SA-listed property posted modest gains, while nominal bonds led all asset classes on US–Iran de-escalation hopes and a Moody’s outlook upgrade. ILBs lagged as inflation risk premia unwound within nominals.
Outlook
The IMF expects that the energy shock from the Middle East conflict will slow global growth in 2026, mainly due to higher energy and food costs, weaker purchasing power and tighter financial conditions, with reduced tariffs, some fiscal support and tech investment partly offsetting the hit.
The recent market shakeout has left investors questioning whether it is time to sit on the sidelines. We are positioned to stay invested, but with diversification across drivers of return. In periods like this, the bigger risk is sharp rotations rather than a clean trend. We continue to use fixed income as a stabiliser, but we are mindful that the hedge quality depends on whether the shock becomes inflationary.
Disclaimer:
Please note that while care has been taken to ensure that the information provided in this article is correct, it represents an overview of the topic under discussion and as such does not constitute advice.
While Alexforbes has taken reasonable effort to ensure that the information contained herein is true and correct it will not be held liable in respect of any loss arising from any advice provided arising out of the contents of this circular.
We suggest that you contact your financial adviser before taking any decisions based on the information herein.
Alexander Forbes Financial Services (Pty) Ltd is an authorised financial services provider (FSP 1177 and registration number 1969/018487/07), an approved retirement fund administrator (24/472) and an accredited Council for Medical Schemes organisation (ORG468).
The following businesses are licensed financial services providers: Alexander Forbes Financial Planning Consultants (Pty) Ltd (FSP 31753 and registration number 1995/012764/07)
Alexander Forbes Investments Limited (FSP711 and registration number 1997/000595/06)
