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Headlines in South African newspapers don’t make for peaceful bedtime reading, and investors are understandably concerned. Making investment decisions can be difficult when the future looks so uncertain.
“Everyone likes a winner”, says Guy Fletcher, Head of Research and Client Solutions, Sanlam Investments.
In an unexpected but welcome move, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) cut the repo rate by 25 basis points to 6.75% after sharp downward revisions to its growth and inflation forecasts.
The term “passive”, when used in conjunction with an investment strategy, has been known to breed the common misconception that index tracking is system generated and, thus, an approach relatively devoid of active decision-making. The reality, however, is that passive investment management, or indexation, requires a great deal of attention to detail, advanced planning, and the human input of active decision making.
The strongest deterrent against FSP compliance missteps is or should be: