Local property market – 4th Quarter 2021
Listed property performed exceptionally well over the quarter returning 8.4% and 36.9% for the year ending 2021. However, it is important to note the considerable base effect at play within the sector, which still has a negative 3 and 5-year annualised return. The property sector faces a systemic shift in demand amid rising online sales activity, and as more companies permanently adopt a work-from-home approach. As demand requirements for the post-pandemic era become clearer, so too should the outlook for the property sector. The GTC Real Estate Fund handily outperformed the South African listed property index for Quarter 4 of 2021 (10% vs. 8.4%). This was a strong performance for a passive, rules-based portfolio and so far, confirms that the underlying investment strategy – the risk parity approach – is working well. GTC Real Estate Portfolio As at Dec... Read More
Local property market – 3rd Quarter September 2021
The quarter saw no change in the local repo rate, which remained at an all-time low of 3.5%. However, local market jitters over future potential rate hikes have emerged once again, as investors remain concerned about global inflation and unexpectedly hawkish moves by the US Fed. The local favourable interest rate environment has been a boon to the local property sector, aiding it in its recovery from previous lows. Whilst the local property market earned +5.9% over the quarter, this sector is still severely depressed as evidenced by its negative medium-term returns of -6.8% annualised over 3 years to September. The property sector faces a systemic shift in demand amid rising online sales activity, and as more companies permanently adopt a work-from-home approach. As demand requirements for the post-pandemic era become clearer, so too should the outlook for the property... Read More
Local Equity Market – 4th Quarter 2021
The local equity market (+8.7%) outperformed both developed (+7.8%) and emerging markets (-1.3%) peers in base currencies. This was driven primarily by strong performances from Resources (+22.2%) and Industrials (+16.1%). The GTC Flexible Fund exactly tracked the Capped Swix Index on a net of fee basis for Quarter 4 of 2021 and outperformed the Index for the calendar year with a pleasing 28.8% return. GTC Flexible Fund As at 31 Dec 2021 3M 6M 1YR 2YR Since common inception GTC Flexible 8.69 12.15 28.56 12.61 10.19 Industry Peer 1 7.98 11.45 26.18 12.50 9.80 Industry Peer 2 8.51 11.82 26.51 12.40 9.59 Industry Peer 3 8.68 12.15 26.72 12.50 9.95 Industry Peer 4 8.49 11.58 25.78 11.81 8.96 FTSE/JSE Capped SWIX All Share Index 8.68 12.15 27.08 13.05 10.20 All returns are net of fees. Returns longer than 1 year... Read More
Local Equity Market – 3rd Quarter September 2020
The JSE/FTSE All Share performance for the quarter was somewhat pedestrian but nevertheless remained positive returning 0.67% with the JSE/FTSE SWIX delivering -0.33%. Covid-19 escalated during the quarter but the authorities have to be congratulated on the manner in which the pandemic was managed. Most market sectors delivered lackluster or negative performance as both political and economic uncertainty continued to undermine investor confidence. Overall market performance was fortunately supported by rallies in both gold and platinum counters which both attracted increased demand. The Resources sector returned 5.71% for the quarter and was by far the best performer. Financials managed to muster a positive return of 0.47% despite having come under repeated selling pressure. The Industrial sector eased as Naspers sold off in line with global tech stocks delivering a negative – 2.29% for the quarter. The Property sector came in... Read More
