News

JC Louw, chief executive of Custodian Investment Managers, believes delivering predictable and consistent average returns ultimately transforms into excellence. ‘Leave your ego by the door. No one’s bigger than the market. If you think you’ll outperform the market, you’ll fail. Keep it simple. Know your strengths,’ Citywire + rated Louw said during a Boutique Collective Investments webinar. ‘Where does performance come from? Most studies show that 90% of returns come from asset allocation. If you get the allocation right, a lot of your returns will follow. Keep your risks low. Make sure you take just enough risk for the product you’re managing,’ he added.

May was a positive month for asset classes globally and locally, with local equities ending up despite local uncertainties and developed markets achieving an excellent 4.5% return in dollar terms on the back of more Tech rallies. US inflation slowed once more, breaking a two-month upward trend and local headline inflation maintained within the target band. The rand-dollar exchange rate was volatile but overall flat month-over-month. Bonds had a good month, with the ALBI and offshore bonds both up about 0.8% in their respective currencies. Initial reactions to the South African election outcomes were positive, with both bonds and equities rising, while the rand regained some strength on the Monday following the final results.