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This article explores how local equity investments can offer protection against major currency depreciation even during times of economic stress.

Jarred Houston discusses the potential in Multichoice.

The overall investor sentiment was cautious in September, impacting both domestic and international markets. Following fears of interest rates being kept high for extended periods, there was a widespread trend of selling, leading to declines in most asset classes. Nevertheless, we believe that the volatility is short-term and has changed little in terms of long-term expectations.

August was quite a risk-off month for markets both locally and globally, there was selling pressure across the board after the great returns seen during July. The All Share, developed market equities and emerging market equities were all down for the month. This does however make the All Share look particularly attractive on a valuation basis.

“The stock market is a device to transfer money from the impatient to the patient.” — Warren Buffett Having patience as a fund manager can have an enormous impact on the performance of your fund. The first and most key step is to identify and invest in quality companies. This is a rigorous process that requires meticulous research to identify companies that display strong fundamentals. Once these have been identified, it is important to buy the company’s stock at the right price. Overpaying for a company can have negative long-term consequences in the fund and a share price might take years to reach the entry price again. The power of patience cannot be underestimated in this process.