Views from the Ground: South Africa
South Africa’s equity markets have outperformed both the broader Emerging Market Index and the S&P 500 in 2022 as commodity price strength helped offset weak domestic economic growth. In 2023, we find it prudent to remain underweight from a country perspective due to the lack of adequate power supply, expected commodity price weakness, and political uncertainty. However, we see overlooked individual stock opportunities that should continue to benefit from market consolidation and consumption growth.
Click on the fund name for a list of the top ten holdings for the Emerging Markets Great Consumer Fund and/or the Emerging Markets Fund as of the most recent month. Holdings are subject to change at any time.
The views and information discussed are subject to change and may not reflect the current views of the writer(s). The views expressed represent an assessment of market conditions at a specific point in time, are opinions and may not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell securities or investment vehicles
Definitions
EEMEA= Eastern Europe, Middle East & Africa
Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. MSCI Emerging Markets (EM) Index captures large and mid cap representation across 24 Emerging Market countries. S&P 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S.
Investment Considerations — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.
Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.