CEO editorial – Quarter 2 2024

Gary Mockler
Group Chief Executive Officer

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Time certainly passes by fast when managing other people’s assets.  It would seem (though we’re nothing by interested and affected bystanders) though that in the realms of politics, time passes by even quicker.

The past quarter and the beginning of this next quarter have proven difficult to report on.  Not so much the performance and trending of the markets, but the to-and-fro dynamics of the macro political environment – which of course is a major influencer on the direction and trending of that which is most important – the markets.  Verifying a sustained South African political trend has proven difficult. 

It doesn’t seem that you need time and gradual momentum to build an opposition party – ask uMkhonto weSizwe.  It’s also become evident that years of building one can be undone in a matter of months (or was it weeks?) – (probably don’t) ask the EFF.   Being a minor party with diametrically opposing principles to the majority party doesn’t mean you can’t be in government, especially at a provincial level.  Who would ever have thought we’d see the ANC and the Freedom Front mutually taking on the DA, as happened in the Western Cape.

Of course, like every other money manager, our job at GTC isn’t to expend much energy on these uniquely South African events, but rather to understand them, interpret their repercussions, and foresee investment trends emanating therefrom.

This quarter’s Trendline focuses on a few financially important government dictates, which will affect macro tends and each of us directly.  The elephants wandering around this room are the NHI and Two-pot.  Both have been in the press for ages now – and we have two articles, one from Zee Gumede in our Healthcare Consulting team and the other from Roger Schärges one of our senior wealth managers.  Roger reflects in his article that the NHI , at least in concept has been around almost his entire professional career. 

NHI, for many people is a conundrum.  Few will argue against those that can’t afford it, having access to improved healthcare.  Equally these same concerned citizens (and GTC’s client base is made up of them) wants their money to pay for their healthcare…

Two-pot is the principle of accessing one’s retirement fund savings – in part – each year whilst one is working.  Initially a union-driven demand which has been on the ANC’s negotiating table for a long time, up to now we’ve watched (and GTC has been actively involved in the administration of) employees using resignation as the only other mechanism to get their hands on retirement savings prematurely.  Not attempting to disperse any more technical know-how on these subjects, which has been done ad nauseam, GTC passes opinion on these important subjects.

Another socio-investment trend which is having a direct result on many investor’s balance sheets (and income statements) is the shifted value of their home caused primarily by the uniquely South African phenonium – Semigration.

The significant disparity between the prices of high-end houses in Gauteng and KZN (and elsewhere) as compared with the Western Cape and how quickly this has happened, warranted some research and GTC opinion.  David Seligman’s article is revealing and thought provoking.  Well worth the read.

We did it again

For many consecutive years now, GTC has been awarded the PMR Diamond Award.  For the seventh consecutive year, we have been voted the top-rated retirement fund management company in our category.  Never complacent and never assuming, GTC is honoured,