Global Market Themes: No peaceful end in sight to Russia-Ukraine conflict Global food and energy prices tick higher, further fuelling inflationary fears United States (US) equities slumped, as earnings disappointment added to investor jitters – S&P500 8.8% lower for March European equities lacklustre, powerhouse German bourse (DAX) loses more than 2% Energy-rich United Kingdom (UK) sees equities buck trend and FTSE100 modestly in the green Risk aversion, political wrangling and poor performance from Chinese stocks drags Emerging Markets (EM). MSCI EM closes 5.5% lower SA Market Themes: As Covid-related National State of Disaster (SoD) ends, floods force the declaration of another SoD Costs of flooding in KwaZulu-Natal (KZN) and the Eastern Cape mounting – estimated at R17 billion South African (SA) consumers spared worst of petrol price increase, as general fuel levy reduced Equities end in the red, Capped SWIX nearly 4% lower Local currency plunges against greenback, with nearly 8% depreciation Inflation Linked Bonds (ILBs) gain ground, bucking the broad trend

Here are this month’s highlights: To prevent a spike in deaths we expect lockdowns will continue in China and are likely to disrupt its economy. The most compelling reason to invest in China right now is the depressed valuations whilst fundamentals for many companies remain robust. China has a one-party system that can drive substantial change quickly if it wants to. Despite significant pressure for most of last year due to tight credit conditions, real estate will remain a dominant sector.

Global Market Themes: Ukraine dominates sentiment, tensions escalate between Russia and NATO-allied nations Further sanctions, supply chain disruptions boost global energy prices United States (US) announces the release of crude oil reserves, somewhat tempering surging oil prices US stocks close 3.7% higher, but volatility remains elevated US Federal Reserve Bank (Fed) sounds a more hawkish tone as it raises the repo rate by 25 basis points (bps) Bank of England follows suit, as United Kingdom (UK) inflation ticks higher. European Central Bank (ECB) takes a wait-and-see stance China lags Emerging Market (EM) peers, MSCI China 8% lower in USD, amidst the resurgence of Covid-cases in Shanghai SA Market Themes: Local equities continue their climb during March, Capped SWIX gains 1.5% To combat higher inflation, South African Reserve Bank (SARB) hikes interest rates as expected Financials deliver stellar performance, advance more than 11.5%, boosted by SARB decision Year-to-date gains in resources subsector pared by 1% dip during March Rand posts solid gains against major currencies South Africans heave a sigh of disappointment as lockdown extended until April 2022

Here are this month’s highlights: Domestically, a resurgence of COVID-19 cases has led to local lockdowns in multiple cities including Shanghai and Shenzhen. Although volatility may persist in the near term, we remain constructive on Chinese equities given the cheap valuations and strong policy support.

Global Market Themes: Heightened tension, volatile markets as Russia invades Ukraine European equities largely lower, UK boosted by oil giants Sanctions and threats, frozen asset-holdings hit Russia and its political elite Risk aversion weighs on Emerging Markets (EM) Commodity-rich EM buoyed by higher oil and metal prices SA Market Themes: South African equities post solid gains, as resources surge Higher oil prices put consumers under pressure, and inflation ticks higher Cyril Ramaphosa’s State of the Nation Address delivers few surprises, muted response Budget 2022 – Godongwana’s tough love stance

Here are this month’s highlights: The MSCI China A Onshore index fell by 8.8% and the MSCI China index had a 3% decline. There are very few fund managers operating in the smaller companies’ space despite the vast investment opportunity.

Global Market Themes: Global equities largely lower, roiled by escalating Russia-Ukraine tensions, inflationary fears and hawkish central banks Highly volatile US equities lose more than 5%, entering correction territory UK, European equities buck the trend, ending in the green Chinese equities continue to lose ground, against the backdrop of slowing growth and regulatory hurdles Emerging Markets (EM) end January lower, but outperform Developed Markets (DM) Oil and gas prices rally, industrial resources post stellar returns SA Market Themes: South African equities buck the trend, ending in positive territory Resources and Financials post over 3% Consumer Price Index (CPI) ticks higher South African Reserve Bank announces hike in the repo rate, meeting expectations South Africans reel from sharp increases in oil prices, Rand battles back from December doldrums

Global Market Themes: Mounting Omicron cases in Europe, United States (US) despite highly vaccinated population Developed Market (DM) equities stage a recovery and end the year with double-digit gains Chinese equities slump, Chinese and US regulators remain at odds Major Emerging Markets (EM) rally, but still end the year 2.5% lower SA Market Themes: Global peers recognise prematurity of bans, ease restrictions Economic data paints a rather gloomy picture South African equities tick higher, Financials lead the way Precious metals and Industrial metals post solid gains, lifting miners Local inflation hedges – listed property and Inflation-Linked bonds – post solid gains Rand shows modest improvement against major currency pairs

Here are this month’s highlights: For December, the MSCI China index was down 3.2% and the MSCI China A Onshore index was up 0.7%. Offshore listed companies in Hong Kong and US ADRs fell indiscriminately. By contrast, onshore China A shares delivered stronger returns on the back of many sectors doing well.

Global Market Themes: Markets roiled by the emergence of new COVID-19 variant (Omicron) United States (US) equities lower, nonetheless outperforming Developed Market (DM) peers Emerging Markets (EM) bear the brunt of global risk aversion Chinese equities mainly lower, on “zero-tolerance” and regulatory uncertainty Oil prices slump, hit 20-month low, on Omicron fears SA Market Themes: Local election results deliver notable surprises in major metros South African scientists report new COVID-19 variant, Omicron, sparking reinstatement of travel bans South African equities seemingly shrug off global fears, close higher led by resources and industrials South African Reserve Bank (SARB) implements first interest rate hike Rand tumbles to fresh lows, closing at more than R16/USD