The new tax year is well underway and with the release of the National Budget’s tax incentives, 2026 presents a prime opportunity to build wealth through smart, tax efficient investment strategies.
This edition takes a dive into useful tax saving tips to boost and optimally grow your investment portfolio to achieve maximum wealth creation. We also share tips to help you manage your money more effectively.
For those wondering how emigration affects access to retirement funds under the two-pot system, our article on the topic provides clarity.
Investment goals and objectives differ by age, yet the principles of defining your goals, matching investments to them and staying disciplined through market ups and downs remain the same. Our article shows how two investors at different stages of life approach achieving their investment goals.
Our health team shares advice for women on managing stress in the workplace by balancing work and wellbeing.
The world is facing uncertainty due to global upheaval. In times like these, sticking to your investment goals, objectives and strategy is more important than ever. Our investment team provides updates and clarity on the financial environment during periods of global uncertainty.
Panic is the enemy of investing; patience is the ultimate investment reward. Speak to your financial adviser to ensure you have these financial basics in place to help navigate uncertainty.
Enjoy the read.
In this issue
Tax-savvy investing tips – Gareth van Deventer
Managing your money – Gareth van Deventer
Goals-based investing: How your age shapes your strategy - Sinawo Makalima
Access to retirement funds on emigration from South Africa – Jenny Gordon
Understanding how geopolitical risks affect your retirement savings – Suniti Naran
Health article: Balancing work and wellbeing
Market Commentary Podcast
Economic and market update
Tax savvy investing tips: Quick wins to keeping more of your money
By Gareth van Deventer CFP® Retail Best Practice Specialist
Make smart choices that reduce tax and grow your wealth
The 2026 National Budget was certainly a welcome change from previous years’ budgets, giving taxpayers much needed tax relief and further tax-savvy investment incentives to boost their long-term wealth creation.
Increases to the tax-free savings account limits (TFSA), tax deductible contributions to retirement funds, donations tax limit and the Capital Gains Tax (CGT) annual exclusion are changes that can enhance long-term wealth. Along with the tax savings introduced to the personal income tax brackets, 2026 is poised to be a good one from a tax perspective.
If you are not optimally using these free gifts from SARS, you are losing out! Now is a good time to make changes to ensure more of your money stays in your camp working for you. Here are some tricks and tips to get you started.
1. Earn more interest – Tax free
You can earn a portion of your interest income without paying any tax:
If you are under 65: The first R23 800 interest earned per tax year (1 March to 28 February) is tax free (R1 983 per month).
If you are 65 and older: The first R34 500 interest earned per tax year is tax free (R2 875 per month).
Tip:
Be sure you know how much interest you are earning from your investments or else you might be accidently increasing your tax liability. Although you want liquid assets for emergencies or expenses, consider reducing your interest-bearing accounts like bank accounts or money market accounts in favour of other tax-savvy investments, like a tax-free savings account or a unit trust.
2. Reduce Capital Gains Tax (CGT)
When you sell investments like shares or unit trusts, the increase in value (capital gain) is subject to tax. The first R50 000 capital gain in total per tax year is tax free There are other CGT exemptions for example when you sell your private property. This has increased from R2 million to R3 million in this budget.
Example:
Individuals only pay CGT on 40% of any gains more than R50 000. If you sold shares and investments with a combined gain (profit) of R120 000 in a tax year then 40% of R70 000 (R120 000 – R50 000) = R28 000 will be added to your taxable income. This will be taxed at your marginal (personal) income tax rate. It is more beneficial than being taxed on the whole R120 000 gain.
Be careful when cashing out investments that attract CGT, as this can unexpectedly increase your taxable income liability. Where possible, try not to withdraw more than the annual R50 000 CGT exclusion each tax year.
3. Annual Capital Gains Tax (CGT) harvesting – A wealth-boosting technique
You can purposely incur capital gains on investments, not exceeding R50 000 each tax year, to reduce tax you could be liable for in the future. By selling investments with a gain and reinvesting this at a higher base price you increase your Capital Gains base price. In the future, when these assets are sold again, the gain will be less as the base price is higher than what you bought it for originally. You therefore pay less Capital Gains Tax over time as you make use of all your exemptions.
Ask your adviser for guidance, as timing is key to getting this right. CGT harvesting is a tax-savvy strategy that can reduce your tax liability. Tip:
Invest in an equity unit trust on 1 March 2025 (base cost)
Value as at 25 February 2026
To harvest, disinvest (sell) on 26 February 2026
CGT inclusion for 2026/27 tax year
(R50 000 gain = R50 000 Annual CGT exclusion. Therefore no tax payable on gain)
Reinvest on 1 March 2026
Sell investment on 25 February 2027
gain (Value less base cost)
inclusion due for 2026/2027 tax year
created due to CGT Harvesting
At retirement, you may take up to R550 000 tax free cash from your retirement funds (cumulative lifetime total across all retirement funds and subject to cash access rules).
(did not sell)
5. Tax free savings accounts (TFSA)
All growth in and withdrawals from a TFSA are completely tax free. No CGT, no tax on interest and no dividend withholding tax. This helps your money work harder for you, rather than for SARS. Contributions to a TFSA have now increased to R46 000 per tax year with a maximum of R500 000 over your lifetime.
Tip:
If you diligently top up your TFSA each tax year you will generate a source of tax-free income in retirement. Use this to increase your income not your tax. Not a cent is lost to tax, it’s all yours!
4. Tax free withdrawals at retirement
6. Lower tax income from dividends
Dividends from South African companies are taxed at 20%, which can be lower than your personal (marginal) income tax rate.
Tip:
If you have smartly used all your tax exemptions and have an average tax rate of 20% or more, consider adding shares to your portfolio with a history of paying good consistent dividends. There are some risks investing in shares, so get advice before considering this tax savings option.
8. Retirement fund contributions reduce your tax bill
By contributing to a retirement fund you can reduce your taxable income by up to 27.5% of your taxable income, with a maximum of R430 000 in a tax year.
Example:
On a R300 000 taxable income using the 2026/2027 SARS tax rates:
Contributing R50 000 to retirement funds saves R13 000 in tax
Contributing R82 500 (27.5% on R 300 000) to retirement funds saves R19 242 in tax.
Tip:
You can make lump sum contributions to your retirement funds before the tax year-end to reduce your tax liability.
Why being tax-savvy matters
Using tax savvy strategies helps you:
Keep more of your investment under your control
Reduce unnecessary tax
Increase your income and wealth in retirement
Build long term wealth quicker and more effectively
7. Endowments
Endowments offer lower effective tax compared to other discretionary investments for investors with an average tax rate of 30% or more and who have used all their tax-free exemptions and exclusions.
Tip:
An endowment not only has tax benefits but also estate planning benefits as it pays directly to beneficiaries. After the restricted period of five years the best part is that the income you take from an endowment is tax-free in your hands.
9. Smart use of donations
You can donate up to R150 000 per tax year without having to pay donations tax Donations between spouses resident in South Africa are tax free with no limit on the amount
Tip:
By donating assets to your spouse you can both make use of all the tax exemptions and potentially reduce tax, especially if one spouse has a lower tax rate. In addition, donate up to R150 000 to your children and grandchildren to boost their investments like their Tax-Free Savings Accounts. Donating assets to beneficiaries who would have inherited from you can reduce your estate duty and executor’s fees by lowering the size of your estate.
Seek professional advice –
Ask your adviser how you can benefit from these strategies. Be tax-savvy and keep your wealth in your pocket where it belongs!
Managing your money
By Gareth van Deventer CFP® Retail Best Practice Specialist
Managing your money effectively is one of the most important steps toward financial stability, independence and long term wealth creation.
Whether you are starting your financial journey or looking to refine your money habits, understanding the fundamentals can help you make smarter decisions. Below are five tips to help you master your money.
1. Budgeting: The foundation of financial control
A budget is more than numbers on a piece of paper, it’s a plan for your money and a map of your priorities. Budgeting helps you understand exactly where your income goes, prevents overspending and ensures that essential expenses and savings goals are met.
Key principles of effective budgeting:
Track your spending: For at least two months, record every transaction you make. This could reveal habits unknown to you.
The order of things: Categorise expenses into savings, needs and wants. Start with allocating your income to savings, then needs then wants. This order will protect your future-self.
Allocate realistically: Avoid budgets that are overly strict. You are more likely to stick to a balanced, practical plan built for you.
Review monthly: Life changes and your budget should adapt accordingly. A newborn baby, a job promotion or a new home are things that require a budget tweak. But remember, savings first!
A good budget gives you control, reduces financial stress and helps you make deliberate decisions rather than reacting to financial problems.
2. The cost of borrowing money
Borrowing can be a helpful financial tool but only when used wisely and it always comes at a cost. Understanding the true price of borrowing helps you avoid unnecessary debt traps.
Here’s what influences the cost of borrowing:
Interest rates: High interest means you pay significantly more over time.
Loan term: Longer repayment periods reduce monthly instalments but increase total interest paid.
Fees and charges: Service fees, initiation fees and penalty fees can add up.
Compound interest: Interest on interest makes debt grow more and much faster than you think.
For example, a credit card with a high interest rate and minimum repayments can easily cause a small purchase to double in cost. Before borrowing, ask yourself whether the item will still have value by the time you’ve paid it off. If not, rather save for the item and avoid throwing away twice as much money on an item that has no value!
3. The importance of debt reduction
Debt limits your ability to save, invest and pursue opportunities. Reducing debt, especially high interest debt, frees up your cash flow and strengthens your financial position overall.
Why debt reduction matters:
• Lower monthly debt increases your disposable income.
• Less debt means less interest paid (that makes others rich), which means more money stays with you.
• Reducing debt can lead to an improved credit score, which opens doors to better interest rates in the future.
• Less financial pressure leads to reduced stress, contributing to overall wellbeing.
Popular repayment strategies include:
• The avalanche method: Pay off the highest interest debt first to minimise interest costs.
• The snowball method: Pay off the smallest debts first for motivational wins.
Additional funds, identified in your budget, can be allocated to the specific debt you want to focus on to settle sooner. No matter the method you choose, consistent effort and discipline are key.
4. The value of settling your bond early
Your home loan (bond) is likely the largest debt you’ll ever have and paid over the longest time. Paying it off early can create substantial long term savings.
Benefits of early bond settlement:
• Interest savings: Even small extra monthly payments can shave years off your bond term.
• Financial freedom: Removing your biggest monthly financial obligation opens new opportunities for investing and lifestyle choices.
• Improved equity: A paid off home increases your net worth and provides security during uncertain times.
• Better retirement readiness: Entering retirement without a bond payment can significantly reduce the income you need later in life.
If you can afford it, even an extra R500 or R1000 each month makes a meaningful difference to reduce the interest and the term of the loan.
5. Understanding long term versus short term savings
Short term savings
Used for goals within one to three years, such as:
• Emergency funds
• Holidays
• Car maintenance
• Unexpected expenses
These should be kept in low risk, easily accessible cash-type options with steady predictable growth.
Long term investments
Used for goals five years and beyond, such as:
• Retirement
• Children’s tertiary education
• Wealth building
These investments benefit from higher growth investments in unit trusts, retirement funds and annuities, tax-free saving accounts and endowments. Over time, compound growth works in your favour, increasing potential returns, but you need to remain invested for the long-term to achieve success.
Combining savings and investment is smart and ensures that immediate needs are covered while building future financial security.
Final thoughts: A financially sound journey starts now
Managing your money is a journey, not a single event. Budgeting, reducing unnecessary debt, understanding the cost of borrowing, settling major debts early and choosing the right savings strategies, creates a strong foundation for long term financial wellbeing.
Small, consistent steps today lead to giant leaps in financial freedom tomorrow.
Goal-Based Investing: How your age shapes your strategy
By Sinawo Makalima Financial adviser at Alexforbes
Goal-based investing aligns money with life stages, providing a roadmap for how to balance growth, risk and protection.
Picture this: Two investors walk into the same financial planner’s office. One is 30, eager to grow wealth aggressively, save for a first home and start building a family legacy. The other is 60, focused on preserving capital, funding children’s weddings and securing a comfortable retirement. Both want success but their journeys will never look the same.
This contrast captures the essence of goal-based investing – giving your money a purpose that matches your stage of life. Instead of chasing returns or trying to outperform the JSE All Share Index, the key question becomes: What do I need this money to achieve and by when?
What Is goal-based investing?
Goal-based investing is about aligning your money with your life’s priorities. Every goal becomes its own ‘bucket’ list – an emergency fund, a property purchase, children’s education or retirement. Each has its own timeline, level of risk and investment strategy.
This approach anchors investors during market turbulence. Rather than panicking over shortterm fluctuations, you remain focused on the bigger picture: the goals that matter most to you and your family.
When investing without goals goes wrong
Without clear goals, investors often sabotage their own wealth. Typical investor behaviour that erodes value include:
• The panic seller: Selling during a market dip and locking in losses.
• The serial canceller: Treating investments as optional contributions instead of commitments.
• The impatient switcher: Constantly chasing last year’s winning fund, racking up fees and missing out on compound growth.
Investors with defined goals are more disciplined, stay invested longer and contribute more consistently.
Andile’s edge: Time on his side
Andile, a 30-year-old marketing manager in Johannesburg, earns R360 000 annually. He rents an apartment in Sandton and has R100 000 in savings. With decades ahead of him, time is his greatest asset.
Andile’s goals:
• Build a six-month emergency fund
• Save for a property down payment
• Begin investing for retirement, aiming for R24 million by age 65
Andile’s strategy:
• Keep his emergency fund in a money market account for easy access
• Use conservative investments for short-term property savings
• Take an equity-heavy approach for retirement (70% equities minimum that includes offshore exposure)
By linking investments to specific goals Andile creates psychological anchors. When markets dip, he reminds himself retirement is still 35 years away. When tempted to splurge, he thinks twice because his money already has a job to do.
Sarah’s challenge: Balance and protection
Sarah is a 60-year-old manager in Cape Town. She’s married with grown children and has R4.8 million in retirement savings. She does not have debt. With five years until retirement, she must balance growth with protection.
• Maintain a substantial emergency fund
• Pay for children’s weddings and build discretionary investment for retirement
• Prepare for retirement Sarah’s goals:
Sarah’s strategy:
• Keep emergency funds liquid to cover eventualities
• Use conservative investments to fund weddings coming up in 2–3 years
• Start a tax-free savings account to be able to structure taxable income in retirement
• Align retirement income options with preretirement investment strategies. Choosing a guaranteed annuity or a living annuity at retirement will determine if she should take on less investment risk before retirement or stay invested in growth assets in anticipation of using a living annuity in retirement.
• Save as much as possible leading up to retirement to boost savings
Sarah’s defined goals protect her from common pre-retirement mistakes like panic-selling during volatility or inflating her lifestyle instead of saving. Her retirement savings didn’t happen by chance; they exist because she treated contributions as non-negotiable.
Why age shapes your investment approach
Andile and Sarah’s stories illustrate how age influences investment strategy:
• Younger investors can take more risk, build offshore exposure gradually and use equities to hedge long-term inflation.
• Older investors need greater balance, clarity on their retirement options and sharper focus on tax efficiency.
For South Africans, it’s also essential to factor in regulation changes, exchange controls and tax incentives like retirement annuities and tax-free savings accounts.
Goal-based investing isn’t about chasing the ‘best’ fund of the year. It’s about aligning your money with your life and your age plays a crucial role in that alignment.
Whether you’re 30 and building your first investment portfolio or 60 and preparing for retirement, the principle remains the same – define your goals, match your investments to them and stay disciplined through market ups and downs.
Your age isn’t just a number when it comes to investing, it’s a roadmap for how to balance growth, risk and protection. The earlier you define your goals, the more resilient your wealthbuilding journey will be.
Access to retirement funds on emigration from South Africa
By Jenny Gordon Head: Technical Advice at Alexforbes
Jenny Gordon, Head: Technical Advice at Alexforbes, explains the rules around your South African retirement savings when you emigrate.
South Africans are a mobile nation. Many people build their careers abroad or decide to relocate permanently for family or lifestyle reasons. But what happens to your South African retirement savings when you emigrate? The rules can be confusing, especially since the introduction of the new two-pot retirement system.
Understanding the types of retirement funds
In South Africa, retirement savings are grouped into three main categories: occupational funds (pension and provident funds, through your employer), preservation funds (pension and provident preservation) and retirement annuity funds (funds that you contribute to privately).
These funds exist to help South Africans save enough to live comfortably when they stop working and to reduce their reliance on the state in retirement. That’s why the system is supported by generous tax incentives. In exchange, there are restrictions on when and how you can access your money.
The two-pot system – A quick recap
Under the new two-pot retirement system, which came into effect on 1 September 2024, your retirement savings are divided into three parts:
Retirement component – This portion is locked in until you retire and must be used to provide an income in retirement.
Savings component – You can access this while you’re still working but only once a year if the value is R2 000 or more.
Vested component – This refers to savings accumulated before the new system started and may have different withdrawal rules depending on the fund.
This structure is designed to give members some flexibility while ensuring they don’t deplete their retirement capital too soon. However, things work differently when you emigrate permanently and are no longer part of the South African tax base.
What happens when you emigrate?
Once you officially cease to be a South African tax resident, you are no longer a potential burden on the country’s social security system in retirement. The law therefore allows emigrants to access their retirement savings earlier than those who remain in South Africa but there are waiting periods and conditions depending on your situation.
Temporary residents
If you worked in South Africa on a temporary work visa and your visa has since expired, you can withdraw your full retirement benefit immediately after leaving the country. There’s no waiting period, regardless of the fund type.
Those who emigrated more than three years ago
If you emigrated and ceased to be a South African tax resident more than three years ago, you can withdraw all your retirement savings, including the retirement and vested components without any waiting time.
Those who emigrated within the last three years
If you ceased to be South African tax residents less than three years ago, you will have some waiting periods.
You will not be able to withdraw your retirement component until you have been a non-resident for an uninterrupted period of three years.
There are some differences between the different types of funds. In a retirement annuity fund, the vested component will also be subject to the uninterrupted three-year waiting period.
In a preservation fund, the latest legislative proposals will allow immediate access to the vested component if it is the first withdrawal. If you previously made a withdrawal or transferred a retirement benefit after retiring, you will also need to wait for the three-year period to expire.
The savings component, however, is always available for immediate withdrawal.
Tax implications
Withdrawals from your retirement fund on emigration are subject to tax, but the rate and method depend on which component you’re accessing:
• The savings component is taxed at your normal income-tax rate.
• The retirement and vested components are taxed according to the lump-sum withdrawal tables, where higher amounts attract higher rates of tax.
Another key consideration is whether your new country of residence has a Double Taxation Agreement (DTA) with South Africa. These agreements determine whether the income is taxed, in South Africa or in your new country and help prevent being taxed twice on the same withdrawal.
Planning is essential
The rules around accessing retirement funds after emigration can seem complex, especially with the new two-pot structure now in place. Timing is crucial: the three-year waiting rule can make a big difference to when you’ll have access to your full savings. The DTA between SA and your country of residence will determine where you will pay tax and how much tax you’ll pay.
Before making any decisions, it’s important to speak to a qualified financial planner or tax specialist. They can help clarify how the rules apply to your specific situation, assist with the paperwork required by your fund and the South African Revenue Service (SARS) and ensure your withdrawal is processed efficiently.
South Africa’s retirement fund system is designed to protect long-term savings, ensuring that members have a secure income later in life. Yet for those who choose to build their future abroad, the law also provides a fair and practical route to access these funds.
Understanding how the different components work, the timing requirements and the tax implications can help emigrants make informed decisions and avoid unpleasant surprises down the line.
With careful planning and professional advice, you can ensure that your hard-earned retirement savings continue to support your goals, no matter where in the world you are.
Understanding how geopolitical risks can affect your retirement savings
By Suniti Naran Senior Research Specialist at Alexforbes
Our investment specialist Suniti Naran shares how global events affect markets, savings and retirement income.
Don’t make big investment decisions without checking in with your financial adviser. Remain invested and focused on your investment goals and objectives no matter what is happening in the world around you.
Let us support you and keep you on track to achieving your investment goals.
Watch the video here.
Balancing work and well-being: Stress management for women in professional settings
Every day, millions of women step into the world wearing multiple hats, leader, mother, sister, colleague, caregiver, friend. Before the sun is high, they are already showing courage, compassion, resilience and strength. Yet in the whirlwind of giving so much to others, stress can quietly weave itself into the rhythm of the day. In a life that moves this fast, prioritising personal well being is not an indulgence, it is an act of empowerment. It is the foundation that allows women not only to keep striving but to rise, lead and thrive with clarity, purpose and joy.
Recognising when stress Is taking a toll
Stress signals often emerge gradually and can be easy to overlook. Common indicators include:
• Persistent fatigue
• Irritability or emotional overwhelm
• Difficulty concentrating
• Reduced motivation or performance
• Increased anxiety
• Feeling mentally or physically depleted
When these signs appear, they are invitations to pause, reassess and reintroduce balance.
Strategies that support well-being
Sustaining high performance requires strategic, intentional approaches to well being. The following practices have proven effective in helping women build resilience and maintain productivity:
Structured self-care routines
Regular self care preserves physical and mental health. Adopting consistent daily practices that help individuals manage stress, regulate their reactions and maintain a sense of calm during challenging moments is essential. These include sleep hygiene, physical activity, mindfulness (intentional pauses), restorative breaks and habits that promote emotional stability. Check in with oneself regularly and by doing this, it is easy to notice early signs of stress and enable early interventions.
Clear professional boundaries
Boundary setting is essential for long-term sustainability. This may involve communicating capacity, clarifying expectations, limiting after hours availability and managing workload proactively. It is important to intentionally disconnect/pause from work once the workday end by pausing work emails, avoiding non-urgent messages and reserving personal time for rest and recovery. It also encourages a culture that respects personal time and recognises that sustained performance depends on adequate downtime.
Utilising Organisational wellness resources
Strong support networks
Mentors, professional peers, women’s networks and supportive allies play a crucial role in personal and career development. These connections provide guidance, emotional support and growth opportunities, helping individuals navigate challenges with greater clarity and confidence. Feeling supported reduces isolation, enhances resilience and encourages a more collaborative and psychologically healthy workplace. When employees are surrounded by a strong network of supportive people, they are better equipped to grow, adapt and thrive.
Emotional intelligence practices
Skills such as self-awareness, selfregulation, empathy and constructive communication help women navigate high-pressure situations effectively. Emotional intelligence strengthens both leadership capacity and interpersonal dynamics and further enables women to lead with authenticity and resilience. They foster collaborative environments where individuals feel supported, ultimately strengthening team performance and organisational culture.
Employee assistance programs (EAPs), wellness initiatives, mental health benefits and leadership development opportunities are important tools for maintaining well-being. Women should feel empowered to access these resources without hesitation.
Creating supportive work environments
While individual strategies are essential, organisational culture plays a critical role in shaping employee well being. Companies that prioritise wellness not only foster a healthier workforce but also improve retention, engagement and overall performance.
Key organisational practices include:
1 2
Flexible work models
Hybrid arrangements, flexible schedules and family-friendly policies enable women to better manage personal and professional responsibilities.
Inclusive career development
Transparent promotion processes, equitable opportunities and intentional sponsorship create a more supportive and empowering environment for women’s advancement.
3 4
Policies that promote equity
Fair workload distribution, genderinclusive policies and accountability mechanisms help reduce stressors linked to bias and inequality.
Supportive leadership
Leaders who demonstrate empathy, provide psychological safety and model healthy work practices play a crucial role in retaining highperforming female talent.
A shared responsibility
When women are equipped to manage workplace stress effectively with the right support, resources and organisational conditions, they bring heightened innovation, engagement and leadership to their organisations. Balancing professional obligations with personal well being requires both individual agency and organisational commitment. Empowering women to prioritise their wellness while fostering systems that support inclusion, flexibility and equity is essential for sustaining long-term success.
Prioritising work-life balance is not merely a personal choice; it is a strategic business imperative. Organisations that actively support the well-being of women ultimately cultivate healthier cultures, stronger teams and more resilient leadership for the future.
Macroeconomic and market developments
Watch the commentary here
Global strategy (returns in US dollars) South African strategy (returns in rands)
Geopolitical risks escalated markedly in March, as US–Israel strikes on Iran disrupted traffic through the Strait of Hormuz, driving up Brent crude prices and increasing the risk of renewed inflation and delayed rate cuts.
US trade policy uncertainty also intensified after the Supreme Court blocked the use of IEEPA for reciprocal tariffs, offering limited relief as the administration pursues alternative measures, leaving inflation, growth prospects and broader trade tensions still under pressure.
Monetary policy guidance from recent meetings shows major central banks remain cautious, with the Fed signaling higher for longer rates until inflation eases more sustainably, the ECB remains on hold despite sub target inflation and softer UK labour data reinforces expected earlier BoE rate cuts. Meanwhile, Q4 growth prints across major economies reflected slowing but still positive global growth, increasingly reliant on domestic demand.
Market breadth remained a central theme throughout February, as US markets delivered mixed performance, while DM ex US equities led by Japan delivered solid gains.
Sticking with consistent themes, emerging market (EM) equities outperformed developed markets for a third consecutive month, rising by 5.5%, led by strong rallies across emerging Asian markets.
Outlook
Locally, the 2026 Budget marked a fiscal turning point as it shows that debt-to-GDP finally peaked in FY2025/26 after rising for past seventeen years. The overall fiscal improvement created room for some relief measures for households and businesses.
Headline consumer inflation eased slightly to 3.5% in January from 3.6% in the previous month, as transport deflation offset steady food inflation and a mild uptick in core inflation.
Meanwhile, South Africa’s unemployment rate fell more than expected to 31.4% in Q4 2025 from 31.9% in Q3, although weak annual job creation highlights the persistent constraints of below potential economic growth.
Riding on the tailcoats of surging metal prices, SA equities continued to deliver robust performance throughout February, as the JSE all share rose to secure its highest since November 2023.
SA listed property was well supported in February, as expectations for improved capital and income returns bid the index higher.
A firmer rand and a well received national budget were the primary drivers of SA bond returns, led by long end yield compression. SA ILB returns held firm yet lagged those of property and bonds.
The global outlook remains broadly resilient but uneven, with the US leading growth, the eurozone lagging, China constrained by structural headwinds and the UK seeing only a modest recovery. Meanwhile, the global policy easing cycle is approaching its end.
The recent market shakeout has left investors questioning whether it is time to sit on the sidelines. We are positioned to stay invested, but with diversification across drivers of return. In periods like this, the bigger risk is sharp rotations rather than a clean trend. We continue to use fixed income as a stabiliser, but we are mindful that the hedge quality depends on whether the shock becomes inflationary.
Disclaimer:
Please note that while care has been taken to ensure that the information provided in this article is correct, it represents an overview of the topic under discussion and as such does not constitute advice.
While Alexforbes has taken reasonable effort to ensure that the information contained herein is true and correct it will not be held liable in respect of any loss arising from any advice provided arising out of the contents of this circular.
We suggest that you contact your financial adviser before taking any decisions based on the information herein.
Alexander Forbes Financial Services (Pty) Ltd is an authorised financial services provider (FSP 1177 and registration number 1969/018487/07), an approved retirement fund administrator (24/472) and an accredited Council for Medical Schemes organisation (ORG468).
The following businesses are licensed financial services providers: Alexander Forbes Financial Planning Consultants (Pty) Ltd (FSP 31753 and registration number 1995/012764/07)
Alexander Forbes Investments Limited (FSP711 and registration number 1997/000595/06)
