The 2022 Budget Survey
At Graviton part of our dedication to providing clients with the best possible solution to meet their needs, is to understand the investment decisions and journey taken by the managers we select via our Manager Research process.
A key part of our role is to understand how managers’ performance is likely to change throughout the market cycle based on the interplay of both economic and market factors. The following report is based on a survey post the 2022 South African Budget announcement. Its aim is to give us, and you, greater insight into some of the thought processes that drive managers’ investment decisions and it enables us to better understand and interpret managers’ performance and positioning.
Our Budget Survey
Specifically, in relation to the announced national budget and expectations of asset classes for 2022, we asked our managers the following questions:
1. Do you intend making changes to your strategy or strategies in terms of asset allocation, yield curve positions or other exposures, such as sectors in the case of equities?
2. Do you think the SA government bond curve is fairly valued by the market or is it pricing in excessive optimism or pessimism?
3. Do you think that SA government bonds will be downgraded or upgraded before the end of 2022? If so, what do you foresee will be the consequences of the up/downgrade?
4. What is your view of the probability of SA government debt default and how would this play out?
5. Is there room for positive or negative surprises in relation to the South African assets and economy?
6. What advice or opinions do you have for investors or clients?
Click here for the full article where our managers answer the above questions on the announced national budget and expectations of asset classes for 2022.