Investments

How might alternatives play a bigger role in investors’ portfolios?

Due in part to a steady decline in the number of listed stocks, industry insiders predict that finding returns in traditional markets will become increasingly difficult. As a result, many investors are turning to alternatives to add diversification and greater return potential to their traditional 60/40 (equity/bonds) portfolios. But what else could drive this growth in the years ahead?

Increased exposure to infrastructure could be good for retirement savers

Retirement savers’ already limited local investment universe has diminished even further with the news that African Oxygen (Afrox) will be delisting from the Johannesburg Stock Exchange. This follows news that Grit Real Estate and Intu Property will be leaving the stock exchange, reducing the number of listed shares on the bourse to less than 350, from more than 600 in 2001.

Commercial property in the doldrums, awaiting economic tailwinds

Will the pandemic and subsequent national lockdown lay waste to sub-sectors of South Africa’s property market? Our gut feeling is that the forecast surge in business liquidations and the implementation of countless business rescue processes will ripple through the commercial property sector, while the three million expected job losses will shatter prospects in the residential market. Time will provide a clearer picture; but over the short term we expect small, undiversified property investors to suffer a severe contraction in both rental income and balance sheet valuations.

Momentum Investments Market and economic outlook