This report outlines our high-level views of financial markets and our asset allocation decisions. In this edition, we explore the global oil market fundamentals in some detail and highlights why we think Royal Dutch Shell offers investors an attractive equation in this context. We also take a detailed look at the global bedding industry and explores our investment thesis for Steinhoff International and, in the context of global mandates, Tempur Sealy. The fundamentals for domestic equity have deteriorated somewhat during the quarter. Facing a ‘toxic combination’ of a strong rand and a weak domestic economy, the earnings outlook has worsened. By our estimation, consensus earnings forecasts have meaningful downside risk from current levels. We have, consequently, cut our domestic equity allocation from overweight to neutral.
A look at our strategy and asset allocation for the 3rd quarter of 2017. Click here for the full article.