We published an article in April 2022 which highlighted why we thought that the rand was overvalued and why we believed it was at risk of a significant rerating. At the time, we noted that the rand could come under significant pressure if market volatility increased or if the commodities cycle tapered off. Since then,…
ESG stands for Environmental, Social, and Governance and, according to PWC, investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities. With Western countries having moved fast to isolate Russia in the wake of the war in Ukraine, energy security and the green economy have…
SA fundamentals are weak, but external factors will also play a role in determining the rand’s direction in the second half of 2022 The following article has been commissioned for Dynasty clients and authored by Alison Barker, economist and head of Analytics Consulting FX Solutions, this being our Investment Committee’s primary source for currency research.…
The era of low interest rates and low inflation seems to be behind us, with most investors and governments admitting that inflation is more persistent rather than being of a transitory nature, as was previously put forward. Rising fuel and energy prices, primarily as a result of the war in Ukraine, supply chain disruptions due…
Smithson represents a small carve-out within the equity component of our Dynasty house-view Funds and is our only component focussed on the small and mid-cap sectors. As such, Smithson has a high beta characteristic and will tend to be much more volatile than our other fund components. We trust that you found that the presentation…
Finance Minister Enoch Godongwana delivered his inaugural Budget Speech on 23 February 2022, the content of which has already been widely publicised and digested by different stakeholders. Of greater interest to us were certain Exchange Control amendments announced by the Reserve Bank after this date, which we believe to be of particular relevance to our domestic,…
With international markets facing headwinds in 2022, one would have expected the rand to be on the back foot. After all, rising interest rates in the developed world, growing inflationary pressures, “risk-off” due to the war in Ukraine, and sanctions on Russia would all seem to point to international investors gravitating towards safe haven assets.…
As mentioned in our Market Update, the quarter was characterized by concerns around higher-than-expected inflation, a more hawkish policy response by the US Fed in terms of rate hikes, and the war in Ukraine. How have these factors impacted our portfolio positioning? Dynasty-selected portfolios that are aligned with a quality style investment philosophy, generally underperformed…
Key take-outs compiled by Reder van Rooyen (investment analyst at Dynasty) Metrics used in the investment process: As a precursor, the Fundsmith Equity Fund looks at the following metrics when identifying strong and resilient companies to invest in: Return on Capital Employed (ROCE), gross margins, operating profit margins, cash conversion and interest cover. As…
