This is a global-only portfolio and invests in equities (all industries, sectors and capitalisation sizes) listed in global equity markets. The Fund provides investors with access to opportunities in global equity markets, while aiming to deliver high capital growth over the long-term.

The Fund’s objective is to outperform the global equity benchmark, the MSCI AC IMI World Index, over the long-term.

Global equities returned 7.3% for the quarter in rand terms. While this appears high, most of the performance was driven by the rand losing 7.4% of its value against the US dollar – falling from R14.09 in June to R15.14 in September. If one takes a closer look at the numbers, besides the S&P 500, most equity markets produced negative returns in the third quarter. The sell-off happened in July and August when market participants became more concerned about slowing global trade as a result of US/China trade tensions.

Central banks tried to soften the blow by engaging in expansionary monetary policies, but their efforts fell short. The US Federal Reserve cut interest rates twice by 25 basis points in each of its meetings during the quarter. The European Central Bank governor, Mario Draghi, gave Europeans a parting gift as his term drew to an end in October. He cut the deposit rate by 10 basis points to negative 0.5% and reintroduced quantitative easing, introducing €20 billion of monthly bond purchases. Global bonds performed better than equities, returning 8% in rand terms. Yields fell in most developed markets. The 10-year US government bond fell 34 basis points to 1.66% and in Japan, yields retreated to negative 21 basis points. In Europe, German bunds are now yielding negative 0.57%.