MARKET OVERVIEW 2019 | QUARTER 1 - Novare
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MARKET OVERVIEW 2019 | QUARTER 1
EXECUTIVE SUMMARY
There were three main risks to financial markets in 2018 - the tightening of monetary policy by the U.S. Federal
Reserve and the subsequent tightening of financial conditions, trade tensions coupled with China’s 2025 policy,
and lastly, the deceleration in global growth. Thankfully, some of the fears surrounding these risks have subsided.
Growth has decelerated and the monthly purchasing managers’ indices (PMIs) of major global economies have
retraced sharply from earlier highs (especially those focused on the manufacturing sector). Indicators of real
economic activity have shown that global economic growth slowed in the first quarter of 2019 as manufacturing
activity moderated further and trade volumes contracted.
In reaction to the increased concern regarding the global economy, leading global central banks have signalled
that it may be less aggressive with future monetary policy tightening than previously anticipated. The more dovish
stance among global central banks coupled with the optimism regarding trade talks between the U.S. and China
moderated fears of a deeper global slowdown. While downside risks remain to the global growth outlook, the global
economy is still expected to firm over the remainder of 2019.
The 2019 domestic growth outlook remains subdued. While a mild recovery is expected, there are significant
downside risks to this outlook. We expect a gradual uptick in headline CPI in the coming months, although there
are a few upside risks to inflation on the horizon. We anticipate that inflation will stay within the 3% - 6% target
band as set by the South African Reserve Bank (SARB). We expect the SARB will keep rates unchanged over the
next three to six-month period.
The dovish monetary policy stance by global central banks has provided a (likely temporary) boost to selected
emerging market (EM) assets and other risk assets. Easy monetary and fiscal policy will continue to provide support
for stocks, but further sustained gains await earnings upgrades, which will take time to develop. The eurozone, EM
economies and Japan are likely to be the biggest beneficiaries of an upturn in global growth and trade.
Another area of increasing concern is the rising level of debt globally. Households in countries such as the U.S.
and the U.K. deleveraged after the global financial crisis. An environment of higher interest rates and weaker growth
has the potential to worsen the debt imbalances. Furthermore, a disorderly Brexit and intensification of geopolitical
tensions would deepen what has, so far, been a mild slowdown. This would create an environment in which
emerging economies would be hurt disproportionately.
The U.S. dollar is likely to drift lower once global growth momentum firms. Should the pound receive any support
from a “soft” Brexit this will likely be temporary. While the rand has traded stronger than expected to date, both
global and domestic factors have the potential to weigh on the currency for the remainder of the year. This is likely
to keep the local unit volatile.
On the commodities front, the significant gyrations in the oil price in recent months has been a function of both
demand and supply dynamics (although supply trends have dominated). To date, the oil price rebound in 2019 can
be attributed to an OPEC decision to reduce output (in November 2018). Going forward, we expect that the lower
OPEC and Russian oil production (as well as a slowdown of rising U.S. output) will support the oil price. A key risk
that could result in a prolonged lower oil price is a greater than expected slowdown in global real GDP growth.
2
follow us @novareholdings www.novare.com connect with Novare HoldingsFIRST QUARTER IN REVIEW
Global
Global growth concerns dominated market sentiment during the quarter with fears being validated by weaker than
expected economic data out of key economies. Global manufacturing activity showed signs of weakness while
fourth-quarter GDP growth figures out of the eurozone showed that Italy had fallen into a recession. In China, the
pace of GDP growth slowed in 2018 but it still exceeds the target (of around 6.5%) set by the Chinese government.
Fears of an economic downturn were fuelled further by the inversion of the U.S. yield curve, which is widely
considered as a leading indicator of a recession. This initially sparked a risk-off mood and weighed on global equity
markets. With that said, employment data offered a silver lining as it showed that both the European and U.S.
labour markets remained resilient. U.S. non-farm payrolls showed that that economy added 196 000 jobs in the
month of March, with the figures for February bring revised upwards. Wage inflation, unfortunately, failed to pick
up.
US NON-FARM EMPLOYMENT CHANGE '000
450
400
350
300
250
200
150
100
50
0
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
Source: Refinitiv
Brexit negotiations saw Prime Minister Theresa May suffer several defeats in Parliament during the quarter.
Uncertainty regarding global trade policy also kept markets jittery. With that said, news of positive developments
regarding trade and Brexit negotiations, led to some risk-on episodes, causing markets to rally. The U.S
experienced its longest government shutdown in history which finally ended after a historic 35 days.
Global central banks responded to the current economic backdrop by adopting more dovish stances. This also
acted as a source of support for risky assets. The U.S. Federal Reserve kept interest rates unchanged and signalled
that no rate hikes are to be expected this year. The central bank also announced that its current program to reduce
the bonds that it holds on its balance sheet would end in six months’ time. The European Central Bank President,
Mario Draghi, revealed a fresh round of loans to boost lending in eurozone banks and reiterated that interest rates
would remain at current levels until the end of the year. The Bank of Japan also kept interest rates unchanged.
3
follow us @novareholdings www.novare.com connect with Novare HoldingsG4 POLICY RATES
Euro Area US UK Japan
20
15
10
5
0
1980/01/01
1981/01/01
1982/01/01
1983/01/01
1984/01/01
1985/01/01
1986/01/01
1987/01/01
1988/01/01
1989/01/01
1990/01/01
1991/01/01
1992/01/01
1993/01/01
1994/01/01
1995/01/01
1996/01/01
1997/01/01
1998/01/01
1999/01/01
2000/01/01
2001/01/01
2002/01/01
2003/01/01
2004/01/01
2005/01/01
2006/01/01
2007/01/01
2008/01/01
2009/01/01
2010/01/01
2011/01/01
2012/01/01
2013/01/01
2014/01/01
2015/01/01
2016/01/01
2017/01/01
2018/01/01
-5
Source: Refinitiv
Despite the concerns surrounding slowing global growth, global equity markets gave a solid performance in the
first quarter of the year. A combination of solid earnings, a dovish U.S. Fed and news that the U.S.-China trade
talks were progressing well, boosted investor confidence. Contradicting accounts on the progress of the
negotiations kept markets see-sawing.
The MSCI Global Equity Index returned 12.6% for the quarter and outperformed emerging markets, with the MSCI
Emerging Market Equity Index returning 9.9% for the quarter. On Wall Street, the S&P 500 clocked its biggest
quarterly gain since the third quarter of 2009 and was up 13.7% for the quarter. In the UK, the FTSE 100 returned
9.4%. The dovish monetary policy stance by global central banks put pressure on global bond yields as bond prices
traded firmer in the month - as mirrored in the Barclays Global Aggregate Bond index which was up 2.2% for the
quarter.
EQUITY MARKET PERFORMANCE
MSCI Global Equity Index MSCI EM Equity Index
2500
2000
1500
1000
500
0
Source: Refinitiv
OPEC-led supply cuts and U.S. sanctions against Venezuela provided crude with support. This led to Brent crude
rallying 24.1% for the quarter. Platinum was up 6.5%, while gold’s safe haven status led to the yellow metal lagging
and returning a lacklustre 0.8% for the period.
4
follow us @novareholdings www.novare.com connect with Novare HoldingsDomestic
The 2019 National Budget confirmed that the fiscal framework remains fragile. Medium-term estimates showed
that the consolidated budget deficit widened to -4.5% for the 2019/20 fiscal year. Gross-debt to GDP was revised
slightly higher when compared to the Medium-Term Budget Policy Statement (MTBPS) in 2018, stabilising at 60.2%
of GDP at 2023/24. While there was a reduction in spending of R50.3 billion, this reduction was unfortunately
countered by SOE bailouts.
In the medium term, National Treasury will allocate R23 billion per year (over a three-year period, this would total
to R69 billion in financial support) to Eskom, which will need to be repaid. In reaction, domestic longer-dated bond
yields rose on the back of the budget but fell again to end marginally higher for the month of February. Despite the
weakening of the country’s fiscal framework, South Africa still managed to cling to its investment grade status when
credit rating agency Moody’s decided against issuing a credit rating action as scheduled.
The rand was volatile in the first quarter of the year, swinging from the best performing EM currency to the worst.
The local currency continued to be pulled back and forth by a series of local and global factors. Supportive factors
included news that the country’s investment grade was affirmed by credit rating agency Moody’s as well as the
continuation of the U.S. Fed’s dovish rhetoric (which was also a source of support for risk assets such as the rand).
Global growth concerns, uncertainty regarding political and global trade policy all weighed down the rand. Negative
local factors, such as Eskom’s precarious financial position and subsequent load shedding, coupled with the
country’s fiscal metrics all contributed to the rand weakness.
RAND
17
16
15
rand/dollar
14
13
12
11
Source: Refinitiv
As widely expected, the SARB decided to keep the repo rate unchanged at 6.75%. The SARB maintained a
hawkish stance at its March monetary policy meeting but deemed overall risks to the inflation outlook to be evenly
balanced. The central bank’s internal inflation model is still projecting one interest rate hike of 25 basis points in
the 2019 year. Statistics South Africa’s final quarter GDP growth figures showed that the economy grew 1.4%
quarter-on-quarter (seasonally adjusted and annualised). This came in at a slower pace than the upwardly revised
2.6% growth in the previous quarter. This brought the 2018 full year growth to 0.8% (year-on-year), which was
marginally better than expected.
Against this backdrop, the FTSE/JSE All Share Index returned 7.9% for the quarter. The local bourse found support
in the resource and industrial sectors. The Resource 20 Index and the Industrial 25 Index were both up by 16.1%
and 8.8% respectively. The Financial 15 Index slipped by -0.4%. After a tough 2018, S.A. Listed Property managed
to post a positive return of 1.4% for the quarter. Bonds outperformed cash on a quarterly basis, with the All Bond
Index (ALBI) returning 3.8% for the quarter while cash returned 1.7%.
5
follow us @novareholdings www.novare.com connect with Novare HoldingsFTSE/JSE ALL SHARE INDEX
63
61
59
Thousand points
57
55
53
51
49
47
45
Source: Refinitiv
GLOBAL OUTLOOK
According to the recent World Economic Outlook (WEO), the International Monetary Forum (IMF) expects the
weakness witnessed in the second half of 2018 to persist into the first half of 2019. The IMF has revised 2019
global growth lower to 3.3% (from 3.6% in 2018). While a 3.3% global expansion is still reasonable, the outlook for
many countries is likely to be challenging as several uncertainties are still present, especially in the short-term.
With that said, the European and U.S. job markets have proven to be resilient. This is likely to translate into
consumer spending which should contribute positively to the GDP of their respective economies.
IMF GDP GROWTH FORECASTS FOR 2019
6.3%
3.3%
2.3%
1.3% 1.2%
US Euro Area China South Africa World
Source: IMF World Economic Outlook April 2019
Looking ahead, a modest uptick in global growth is expected in the second half of the 2019 year. The expectation
of an improvement in global growth is, however, based on a number of assumptions. Some of which include a
continuation of the accommodative monetary policy stance by global central banks and law officials in key regions
(most notably China and Europe). Another assumption is that the temporary drag on growth in Europe will begin to
fade and that there is an improvement in global financial market sentiment. With that said, it is also important to
highlight the risks to the global growth outlook which are present in key economic regions, namely the U.S., China
and Europe.
6
follow us @novareholdings www.novare.com connect with Novare HoldingsIn the U.S. a decade of extremely easy monetary policy has created several risks and imbalances. The U.S. credit
cycle is at an advanced stage, with a rising share of lower-rated issuers in the corporate bond market and a growing
volume of covenant-lite loans extended to highly indebted companies that offer limited protection for investors in
the event of a default. If U.S. growth was to weaken, such financial fragilities could amplify and prolong the
slowdown by leading to debt-service difficulties in highly leveraged companies, credit rating downgrades, and rising
rollover risks, with further negative feedback effects on corporate spending. Therefore, while corporate credit might
not cause the next recession, it is likely that it could make the recession much worse should it occur.
CHINA GDP GROWTH
7.5%
7.3%7.3%
7.0%7.0%
6.9%
6.8% 6.8%6.8%6.8% 6.8%
6.7%6.7%6.7% 6.7%6.7% 6.7%
6.5%
6.4%6.4%
Q2 Q3' Q4' Q1' Q2' Q3' Q4' Q1' Q2' Q'3 Q4' Q1' Q2' Q3' Q4' Q1' Q2' Q3' Q4' Q1'
'14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19
Source: Refinitiv
In China, authorities responded to the slowdown in 2018 by limiting the extent of regulatory tightening, injecting
liquidity (through reductions in bank reserve requirements) and reducing personal income tax and value-added tax
for small and medium enterprises. If trade tensions fail to ease, activity may fall short of expectations. In addition,
excessive stimulus to support near-term growth (through a relaxing of credit standards, or a revival of shadow
banking activity and off-budget infrastructure spending) could heighten financial vulnerabilities. This could also
reduce the flexibility of future policy and increase downside risks to medium-term growth.
In the eurozone, household sector imbalances have generally been reduced over the past 10 years, but
government debt burdens are still a problem. Several eurozone economies remain vulnerable as a result, while the
largest economy in the region, Germany, has very little structural vulnerabilities. The U.K. is more exposed to
sovereign debt strains than most investors perceive. While a disorderly Brexit is a major risk, an even greater threat
is the U.K.'s housing and credit bubble.
Economic green shoots could potentially emerge which should lend further support to risk assets. At the same
time, it is difficult to overlook the inherent contrast behind the strength of equities and bonds. The more dovish U.S.
Fed supported global bond prices during the quarter, but bond prices will only be able to gain further momentum if
the economic expansion fails to take hold and growth fades. On the other hand, for equity markets to advance,
investors must be confident that the green shoots will eventually blossom and that the global economic expansion
will continue. Eventually, either stocks or bonds will have to reverse course.
Our assumption is that the global economic expansion will continue, with manufacturing and trade momentum
firming in the months ahead. While a near term consolidation is probable, equities are likely to outperform
government bonds as earnings expectations bottom out and investor risk appetite improves. Corporate
fundamentals and low yields on risk-free instruments will enable credit products to continue to outperform
government bonds.
7
follow us @novareholdings www.novare.com connect with Novare HoldingsWhile U.S. stocks have outperformed in recent years and offer many compelling attributes (for example, superior
economic growth, more favourable sector composition and better profitability) it does not offer good value when
measured against comparative profitability. In other words, the U.S. is now comparatively expensive for its superior
profitability, with several key sectors trading at, or near, all-time relative valuation premiums. These premiums
would be difficult to sustain if the relative earnings trend swings away from the U.S. as global growth momentum
firms again. Therefore, over a six to twelve month horizon, we would be mildly underweight U.S. equities with a
careful selection in EM, European as well as Japanese markets.
Regarding fixed income, we have kept an underweight duration on bonds. The recent inversion of the U.S Treasury
curve was widely interpreted as a bearish bond-market signal for the U.S. economy. However, the associated
decline in mortgage rates signifies an improved outlook for the housing market and, in addition, the curve inversion
did not concur with weakness in corresponding and leading employment indicators.
DOMESTIC OUTLOOK
It appears that 2019 may be another challenging one for the S.A. economy. Headwinds include a slowing global
economy, Eskom (and other SOE) woes and S.A.’s 2019 growth outlook being dented by severe electricity outages
and the uncertainty of reliable electricity supply. Adverse weather conditions in the western maize-growing areas
of the country, prolonged strike activity in the gold mining sector and the (populist) rhetoric associated with the
upcoming national election further added to the country’s troubles. High-frequency data prints started off the year
on a negative footing - business confidence declined, and the manufacturing PMI has remained below 50 index
points (in contractionary territory). The SARB’s composite leading indicator is negative over a year-on-year
comparison and vehicle sales have slumped.
This suggests that 2019 is likely to be the fifth consecutive year where real GDP growth will be below population
growth, implying that the country will suffer a further setback in per capita income terms. Despite these headwinds,
some pick-up in growth momentum (from the pedestrian performance in 2018) can be expected. This will only be
the case after the second half of the year once the election dust settles.
While we still expect a gradual uptick in headline CPI in the coming months (for it to average 4.9% for the year),
there are a few upside risks to inflation on the horizon that one needs to consider. For example, global risk sentiment
and a volatile rand exchange rate, the possibility of an El Niño event that will induce drought circumstances in the
latter part of the year, increasing global oil prices, and local administered inflation remaining elevated. Overall, we
believe inflation is likely to remain contained below 6% for the foreseeable future (in the absence of a severe
drought).
SA GDP GROWTH
3.2% 3.4%
3.0% 2.8%
2.6%
1.4% 1.4%
0.7% 0.6% 0.9%
0.3%
-0.3% -0.5%
-1.0%
-1.3%
-2.7%
Q1 `15 Q3`15 Q1`16 Q3'16 Q1'17 Q3'17 Q1'18 Q3'18
Source: Refinitive
8
follow us @novareholdings www.novare.com connect with Novare HoldingsIn terms of the rand, the likelihood is that the local currency will trade between R14.00 - R15.00 against the U.S.
dollar during 2019. With that said, bouts of strength and weakness out of this range can be expected, but the
sustainability may prove difficult to maintain. While there appears to be uncertainty around the continuation of
further stimulus by Chinese authorities (given recent Chinese growth numbers) further stimulus package
announcements by China may see commodity currencies react positively. The recent dovish rhetoric by global
central banks has been supportive of risk assets (such as the rand) and U.S. dollar strength is likely to be limited,
especially if trade policy is resolved, and the global growth expansion continues.
Regarding domestic bonds, the U.S. Fed is unlikely to increase rates within the next six months and the upside to
U.S. Treasury yields is likely to be limited until economic activity firms and investors embrace the less negative
global growth outlook. This will be a source of support for EM assets (and subsequently for EM economies that are
vulnerable to “hot money”) as the window of opportunity for higher-yielding EM assets will likely persist until then.
This prospect is, however, based on the assumption that there will not be a substantial EM sell-off and that global
central banks maintain their dovish stance.
We expect the negative impact of domestic headwinds to be offset by the tailwinds for local assets (such as the
dovish stance by global central banks and the relatively benign inflation profile). These countervailing forces will
likely lead to high volatility. Domestic headwinds to keep an eye on will remain S.A.’s weak growth profile, the
country’s fragile fiscal metrics (which could prompt negative credit rating action) and uncertainty regarding some
economic policies. Nonetheless, we expect both the rand and local bonds to be range bound in the near term.
On a six to 12 month basis, we expect the Fed to resume the normalisation of monetary policy and Treasury yields
to drift higher. This could see the rand weaken and bond yields drifting higher (but not driven by the dollar). We
expect the dollar to consolidate last year’s gains and gradually drift lower over the next six to 12 months.
The S.A. Listed Property sector was severely hurt by the significant falls in the shares of Resilient, Fortress and
NepiRock (which make up a sizeable proportion on the South African Listed Property Index) following allegations
of share manipulation in 2018.
The current environment presents a challenging macroeconomic backdrop with a broad range of risks requiring
consideration. On the domestic front, the risks range from weak property fundamentals, upcoming national
elections, tenant-specific risk and potential financial reporting changes. More broadly, the market remains
vulnerable to external shocks. In these market conditions, we believe a vigorous evaluation process is crucial when
it comes to assessing risk and return opportunities and, therefore, stock selection will be key.
In terms of cash, the market is pricing in a benign outlook for local interest rates, however, the state of the fiscus
and possibility of future downgrades remain risk factors for the local economy. In the absence of other options,
money market investments provide the best capital protection in the short-term.
Local stocks have bounced back from extremely oversold levels (along with global equities) in the first quarter.
Earnings momentum slowed on the local bourse in March, while valuations remained steady above the long-run
average P/E ratio of 15.5. Valuations have become more attractive recently (in comparison to two years ago), due
to a lower return on equity (ROE). Moreover, because we do not anticipate a significant weakening in the rand in
the near term, the rand-hedge tailwind may be absent. Barring a sustainable improvement in growth expectations
(and earnings), there may be limited upside in absolute terms.
While the pace of reform implementation has been slow, President Ramaphosa has made significant in-roads in
his investment drive. The announcement of a stimulus package and the reprioritisation of the existing budget
framework to stimulate economic growth and job creation have also been perceived positively. The gradual
implementation of the reform agenda by the new (Ramaphosa) administration, combined with the reduction in
political uncertainty (following the May elections) will likely have a positive impact on the country. However, the
result of the implementation of the reforms is likely to take some time.
9
follow us @novareholdings www.novare.com connect with Novare HoldingsHEADLINE INDICES
HEADLINES INDICES 1 MONTH 3 MONTHS 12 MONTHS
Africa All Share 1.56% 7.97% 5.04%
Africa Top 40 1.94% 8.45% 6.15%
Africa Mid Cap -1.82% 2.76% -3.74%
Africa Small Cap -2.71% -3.41% -16.44%
Africa Fledgling -3.20% -5.66% -13.71%
Africa Resource 20 4.61% 16.18% 40.55%
Africa Industrial 25 3.49% 8.80% -2.08%
Africa Financial 15 -4.78% -0.44% -3.47%
Africa Financial and Industrial 30 0.92% 6.28% -2.28%
Africa Capped All Share 0.69% 6.77% 3.47%
Africa Shareholder Weighted 1.25% 6.01% 0.43%
All Share Economic Group Indices
Africa Basic Materials Index 4.72% 18.04% 41.76%
Africa Industrials Index -5.32% -3.90% -17.44%
Africa Consumer Goods Index 1.83% 12.38% -6.78%
Africa Health Care Index -14.14% -12.70% -38.09%
Africa Consumer Services Index -2.23% 2.15% -1.10%
Africa Telecommunications Index 5.02% -2.28% -19.87%
Africa Financials Index -4.04% -0.45% -5.82%
Africa Technology Index 9.32% 2.16% 11.40%
All Share Sector Indices
Africa Chemicals 5.32% 6.31% 9.69%
Africa Electronic & Electrical Equipment Index 1.43% 5.41% 1.84%
Africa Industrial Engineering Index -1.31% -20.17% -43.31%
Africa Automobiles & Parts Index 13.94% 17.38% 3.43%
Africa Beverages Index 9.98% 24.81% -1.27%
Africa Food Producers Index -0.10% -5.51% -26.46%
Africa Health Care Equipment & Services Index -4.01% -3.76% -17.63%
Africa Pharmaceuticals & Biotechnology Index -31.05% -28.16% -60.86%
Africa General Retailers Index -5.30% -14.20% -27.18%
Africa Travel & Leisure Index -7.18% -10.26% -15.17%
Africa Media Index 14.90% 25.15% 25.39%
Africa Support Services Index -3.42% 1.09% -15.42%
Africa Industrial Transportation Index -3.69% -3.13% -28.16%
Africa Food & Drug Retailers Index -1.88% -2.87% -8.92%
Africa Fixed Line Telecommunications Index 4.14% 15.22% 47.31%
Africa Banks Index -6.00% -0.80% -4.98%
Africa Non-life Insurance Index -0.95% 3.91% -4.41%
Africa Life Insurance Index -4.88% -5.50% -5.37%
10
follow us @novareholdings www.novare.com connect with Novare HoldingsAfrica General Financial Index -1.91% 3.10% -7.92%
Africa Equity Investment Instruments Index 9.82% 11.31% 11.69%
Africa Software & Computer Services Index 9.32% 2.16% 11.40%
Africa Gold Mining -4.48% 13.11% 38.24%
Africa Platinum & Precious Metals 2.28% 49.73% 117.83%
Africa SA Listed Property - (SAPY) -1.46% 1.45% -5.68%
Bonds, Cash & Inflation
All Bond Index 1.33% 3.81% 3.46%
Stefi Composite 0.61% 1.77% 7.26%
CPI (Previous Month) 0.82% 1.46% 4.52%
CPIX (Previous Month) 0.91% 1.74% 4.80%
Currencies
Rand Dollar Exchange Rate 2.89% 0.98% 22.58%
Rand Pound Exchange Rate 1.17% 3.15% 13.82%
Rand Euro Exchange Rate 1.51% -1.26% 11.46%
Dollar Euro Exchange Rate -1.34% -2.16% -8.95%
Dollar Yen Exchange Rate 0.47% -1.14% -4.14%
Naira Dollar Exchange Rate -0.28% -1.37% 0.14%
Commodity Prices
Brent Oil (USD/Barrel) 1.76% 24.16% -2.62%
Gold (USD/oz) -2.39% 0.86% -2.50%
Platinum (USD/oz) -3.03% 6.58% -9.11%
Copper ($/Ton) -0.78% 8.72% -2.99%
CRB Index 0.75% 8.85% -3.87%
Global Bonds 1.25% 2.20% -38.00%
S&P 500 1.79% 13.07% 7.24%
Nasdaq 2.70% 16.80% 10.63%
MSCI Global Equity 1.38% 12.65% 4.61%
MSCI Emerging Mkt 0.86% 9.97% -7.06%
11
follow us @novareholdings www.novare.com connect with Novare HoldingsCONTACT US
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Niagara Way, Tyger Falls
Carl Cronje Drive, Bellville 7530
South Africa
Tel: +27 (0) 21 914 7730
Fax: +27 (0) 21 914 7733
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2000/018539/07) (“NI”) is an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act No 37 of 2002. FSP No. 757 (CAT I,
CAT II, CAT IIA). NI is approved by the Financial Services Board in terms of Section 13B of the Pension Funds Act, 24 of 1956, as an Investment Administrator: 24/ 456.
NI is a member of the Association for Savings and Investment SA.| Novare Equity Partners (Pty) Ltd (Registration number: 2007/020662/07) (“NEP”) is an Authorised
Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act No 37 of 2002. FSP No. 41836 (CAT I and CAT II). NEP is approved by the
Financial Services Board in terms of Section 13B of the Pension Funds Act, 24 of 1956, as an Investment Administrator: 24/ 554. NEP is a member of the South African
Council of Shopping Centres. NEP is a member of South Africa-Nigeria Chamber of Commerce. | Novare Wealth(Pty) Ltd (Registration Number: 2014/136255/07) (“NW”)
is an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, No. 37 of 2002. FSP No. 46011(CAT I).
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