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WHAT’S INSIDE YOUR DECEMBER ISSUE: ESG INVESTING Investing responsibly is essential for those looking to align their values with their financial goals. We take a look at the growth of this class.
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Investing takeaways from 2024
It’s been a challenging, surprising, unpredictable year. Are there things investors could have done differently? MoneyMarketing asked three industry experts about their experiences in 2024.
Mike Adsetts, Global Chief Investment Officer at Momentum Multi-Managers The biggest takeaway from 2024 is reflecting on the FUNERAL POLICIES significant challenges the year brought. Many of With new legislation in the pipeline, these risks were somewhat anticipated as early as the it’s essential that FAs stay up to beginning of the year, but while they were identified, date with the latest happenings in no-one knew how they would transpire. The discussion the funeral insurance industry. initially focused on whether a recession was looming Pg 16-18 for the US economy. However, as the months passed, the narrative began to shift toward the possibility EDUCATIONAL POLICIES of achieving a ‘soft landing’. This led to debates and The rising cost of education means differing viewpoints, with the central question being that saving for a child’s future whether there were sufficient economic indicators should be a part of everyone’s pointing to a feasible soft landing. financial portfolio. We look at an Inflation was another critical issue, innovative product that offers this continuing to run at elevated levels, causing and more. concern across markets. The initial outlook Pg 20-21 for 2024 included the expectation that interest rates in developed markets might OFFSHORE INVESTING ease. However, the pace and timing of From loop and Shariah investing such rate cuts were still uncertain, with to trusts and foreign pensions, central banks being cautious. the latest trends in The anticipation and response offshore investing are to these evolving conditions worth investigating. highlighted the delicate Pg 22-25 balancing act central banks Moneymarketing Hedge October 2024.pdf 1 2024/10/22 17:11:24 faced throughout 2024. Pg 12-15
The two elections – South African and US – were always going to be key economic indicators. We were hesitant about the impact of local elections on the markets. It created a difficult situation because South African assets were undervalued but if the results of the election were unfavourable, the risk was that yields would spike up, the rand would weaken, and local equity markets would continue to be under pressure. We positioned our portfolios to be a bit underweighted in South African assets because we were concerned about the outcome of the local election, but it was a little bit moderated. Where we did have an underweight, it wasn't a big underweight. We were cautious. After the elections, the markets rallied quite strongly as the outcome was better than any of us had anticipated. The US election also brought some surprises. While the presidential race was always too close to call, no one predicted the total red wave that emerged. Trump is known as being an unpredictable president, and will probably be a very unpredictable president this time around, looking at the appointments he's made to date. There's also a view by some in the US that Trump will be more interventionist in the Federal Reserve, but that remains to be seen. We don't foresee the dollar losing its status as the global reserve currency. There's no real potential replacement for the US dollar as a reserve currency in the near, medium and even a couple of decades into the future. We will, however, probably start seeing deglobalisation to a point that it’s replaced by regionalisation. As America becomes more protectionist, other contenders see an opportunity for themselves to stake a place in the world. Continued on next page
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