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S.A. market ‘still good value’ in volatile times

12 October 2021 Morningstar South Africa
Victoria Reuvers, Managing Director at Morningstar Investment Management

Victoria Reuvers, Managing Director at Morningstar Investment Management

The South African market continues to provide excellent opportunities for the savvy investor, even at a time when many local investors are questioning whether they should remain invested in local equities or look offshore.

That was one of the strong messages to emerge from the digital Morningstar Investment Conference last week, with a lively panel discussion around S.A. vs Global Equities, one of several highlights of the conference. The event brought together industry leaders and investing experts to discuss the latest market developments and share new perspectives on the market.

Delivering a keynote address at the event, Morningstar Investment Management S.A. Managing Director Victoria Reuvers said 2021 was ‘an extraordinary year’ for global and local financial markets, with the disconnect between what's happening on the ground and what's happening in markets continuing to widen in the face of ongoing geopolitical and economic volatility caused by the Covid-19 pandemic.

“Globally, markets are being driven by several key trends, including a boom in technology listings, passive investing, ESG (Environmental, Social, and Governance) investing, and the explosive growth of direct indexing. While several of these trends have yet to fully take off in South Africa, the local investment landscape has evolved rapidly to include an array of different investment options, structures, vehicles and providers,” said Reuvers.

The ongoing market volatility both locally and globally has seen asset managers, platforms and financial advisers having to adapt their approach, offering, capabilities and knowledge to changing customer needs, regulations and product offerings, said Portfolio Specialist Debra Slabber.

Chairing a panel discussion on the changing nature of financial advice in South Africa, Slabber said the past 18 months had ‘radically changed’ the way that advisors connect and communicate with their clients.

“It’s accelerated conversations around issues like the integration of technology and financial planning practices, and succession planning. Independent advisors are facing a range of challenges, including the need to stay informed and filter out the noise amidst a wave of information coming at them from all angles. Clients are becoming more knowledgeable, and are demanding more convenience, more transparency, and more objectivity,” said Slabber.

Tal Nieburg, managing director of Morningstar South Africa, said while the world was going through a period of ‘massive uncertainty’, Morningstar’s mission of empowering investor success remained as relevant as ever.

“The last two years have been extraordinary in terms of financial market returns and volatility, coupled with a supercharged global and local political environment. The questions that these sharp movements pose are very material, and we all have every right to feel uncertain. Investors have never needed support or financial tools more as they look to securely navigate this unpredictable environment,” said Nieburg.

For more information about the Morningstar Investment Conference, visit the event website on https://www.morningstar.com/en-za/events/mic.

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