CEO editorial – Quarter 1 2025
Gary Mockler Group Chief Executive Officer _______________________________________________________________________________________________________ Every moment of momentum – whether in markets, emotions, or circumstances- can create a false sense of permanence. Experience shows us the truth: no trend lasts forever, no headline rules forever, and no environment remains static. That’s why sound planning isn’t about chasing moments of high or low; it’s about being prepared to navigate what comes next. These moments often stir strong emotions – anxiety for some, excitement for others – and while those feelings are natural, they should never dictate financial decisions. The urge to act impulsively is strongest when uncertainty peaks. But reacting without a clear plan isn’t strategy – it’s impulse. This quarter’s message is simple: strategy should never be hostage to fleeting events. Short-term noise, however loud, shouldn’t rewrite long-term goals. Financial plans need to be robust enough to... Read More
Active vs. passive investing: What really matters?
Samir Narotam Portfolio Manager _______________________________________________________________________________________________________ The perennial debate – which is better – active asset management or should you use passive asset management? As your dedicated asset manager, GTC wants to provide a clearer understanding of two primary approaches to investment fund management: active and passive. While both strategies aim to grow your capital, they differ significantly in their methodology, risk exposure and potential outcomes. Our primary objective at GTC and as a multi-manager, is to optimise your portfolio’s growth and navigate market complexities effectively. To that end, we have provided a focused perspective on the strategic rationale behind our emphasis on optimal investment management rather than purely active or purely passive management. Passively managed funds: Following the market Imagine a boat simply going with the flow of the ocean. That’s essentially how passively managed funds, often called... Read More
Buying vs. renting in South Africa
Manty Seligman Director – Asset Management _______________________________________________________________________________________________________ Navigating property decisions in South Africa’s high-interest rate climate 2025 In the unpredictable theatre of South Africa’s economy, the age-old question resurfaces with fresh urgency: Is now the time to buy a home, or does renting offer a smarter play? The appeal of homeownership is enduring – equity, stability, pride of place. But when interest rates flirt with 12% and the broader macroeconomic outlook feels like a game of political Jenga, even seasoned investors are pausing to reassess. The answer isn’t as binary as it once was. The economic landscape: Debt is no longer cheap As of 2025, the South African Reserve Bank is holding the line on elevated interest rates in a prolonged bid to manage inflation and stabilise a battered currency. Prime lending rates hover around 11.75% to... Read More
Understanding the role of gold in your investment portfolio
Samir Narotam Portfolio Manager _______________________________________________________________________________________________________ Gold in focus: Safety, strategy, strength The enduring appeal of gold as a tangible asset and a portfolio diversifier persists in today’s dynamic financial landscape. Historically viewed as a safe haven and inflation hedge, gold offers a unique value proposition. However, the methods for gaining exposure – physical bullion, Exchange Traded Funds (ETFs), and gold-linked companies (stocks) – each present distinct characteristics, risks, and potential rewards. This article aims to provide a balanced perspective on these investment avenues, particularly in light of recent gold price rallies. The allure and the caution: Understanding gold’s role Gold’s intrinsic value, rooted in its scarcity and historical significance, sets it apart from fiat currencies. Its potential to act as a safe haven during economic uncertainty and a hedge against inflation contributes to its diversification benefits within a... Read More
Private investing can feel like applying for space travel
David Seligman Fund Manager _______________________________________________________________________________________________________ Why your private investments require more paperwork than a space launch (well, almost) So, you’ve decided to make a new investment. Forget the leisurely stroll through the park; this is more like navigating a bureaucratic jungle, armed with a machete made of paperwork. You’ll soon find yourself drowning in requests for documents you didn’t even know existed: proof of address, identity documents, source of funds, and if you’re investing through a company or trust, the ever-mysterious ‘ultimate beneficial owners’. And just when you thought you were done, they ask for updated versions of everything. Yes, the paperwork never ends. Why, you might ask, does investing your hard-earned cash require you to provide what feels like your entire life story, financial history, and DNA sequence? Are they expecting you to fund a... Read More
Market Overview – First quarter 2025
In-depth market commentary Over the quarter: Local equities ended the quarter up +5.9%, with the Resources sector leading the rally as it gained +33.7%. The Financials sector shed -1.7% on profit taking, while Industrials sector, driven by a run in Richemont and Prosus, added +3.1%% over the quarter. The local property sector detracted -3.5%. South Africa’s economy expanded 0.6% in the fourth quarter, supported by a rebound in agricultural output. In March, the South African Reserve Bank kept the repo rate unchanged at 7.50% with a cautious outlook amid the current tumultuous global environment. SA inflation ended the quarter at 3.2%, within the Reserve Bank’s target range. Subdued domestic demand coupled with a deteriorating global trade outlook, could see local inflation cool even further. Local Cash yielded a return of +1.9%, outperforming local Bonds which delivered a +0.7% gain. The... Read More
