Global economic recovery gained further momentum during the first quarter of 2021 due to the effects of the monetary and fiscal stimulus measures in economies worldwide. The continued success of vaccination efforts internationally increased the optimistic sentiment about the re-opening of economies and has led to ongoing positive economic growth forecasts around the globe.

Asset classes on the higher end of the risk-reward scale benefitted most from the improving global growth picture during the quarter. SA equities provided the highest returns among the local asset classes in the first quarter of this year by some margin (13,1% in rand terms), outperforming returns from listed property (6,4%), inflation-linked bonds (4,6%), cash (0,9%) and nominal bonds (-1,7%).

The impressive returns from SA equities were driven to a large degree by Naspers and the resource sector, excluding gold, with platinum stocks benefiting strongly from an excess in demand versus supply. Returns from SA asset classes should continue to benefit from the current global economic environment as long as the supportive monetary and fiscal policies remain in place worldwide.

The announcement by Absa in April that the 25-year-old Absa Money Market Fund will be closed came as a shock to experts and investors alike. Investors have until 6 July 2021 to move their funds to another account before the R80 billion fund closes. Should investors choose not to move their funds, their investments will automatically be transferred to an Absa investment bank account, with the same account number, where their capital will be guaranteed by the bank. Transactional functionality on the account will remain the same as that of the Absa Money Market fund.

In this issue we explain what a money market fund is and share information regarding the benefits and drawbacks of cash investments. Many consumers have re-assessed their spending habits over the past few years – we provide insights intodecorating on a budget for those who are looking to give their living spaces a facelift. If you are looking for a new adrenaline-filled hobby, we bring you an introduction to skydiving.

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

Enjoy this issue!

Best regards

Johann Joubert