While the national vaccination program has picked up speed over the last number of weeks, whether enough progress can be made to lessen the peak of a likely third wave of COVID-19 infections remains to be seen.

On the economic front we experienced a marked acceleration in CPI inflation in April. The Bureau for Economic Research (BER) reports that higher-than-expected food prices were a major contributor to April’s uptick. At 6.7% y-o-y (1% m-o-m), the CPI food component came in at the highest level since 2017. Going forward, faster-than-expected food price increases remain a key risk to the inflation outlook, along with the danger posed by escalating wage demands in various economic sectors.

For the fifth meeting in a row the Monetary Policy Committee (MPC) of the South African Reserve Bank kept the repo rate unchanged at a multi-decade low of 3.5%. While the risk has increased that the MPC could start increasing interest rates in the latter part of 2021, the BER believes that the first hike will only be in early 2022.

In this issue we share an introduction to hedge funds, an investment vehicle that has traditionally been intended for use by sophisticated investors such as institutions or high-net-worth individuals. A recent study found that, of the approximately 12million cars on our roads, only about a third are insured. We delve a little deeper into the problem ofuninsured drivers. With winter having arrived with a vengeance, we provide helpful tips on beating the winter chill in a cost-effective way.

Please be assured of our commitment to assisting you in achieving continued financial success and prosperity.

Enjoy this issue!

Best regards

Johann Joubert