Thriving in market volatility

Dear Client,

Ride out volatility and maximise long-term returns

Global markets continue to experience periods of volatility, driven by geopolitical uncertainty, interest rate cycles, currency movements, and shifting investor sentiment. While these conditions can feel unsettling, they also present meaningful opportunities for disciplined, long-term investors.

This reminds us of a communiqué we shared on 05 September 2018, based on insights from Andrew Lapping, then Chief Investment Officer of Allan Gray. His message remains as relevant today as it was then: volatility is not something to fear, but something to prepare for and use to your advantage.

For context, Andrew was employed at Allan Gray from February 2001 to August 2020. He joined as a fixed interest trader, later becoming an equity analyst, and progressed to fixed interest portfolio manager. From 2008, he managed portions of equity and balanced portfolios and was appointed Chief Investment Officer in 2016. He also managed African equities. Andrew holds a BSc in Engineering and a BCom in Accounting from UCT and is a CFA® charterholder.

Thriving in market volatility

If you are invested for the long term, it is important to accept that markets will move in cycles. Volatility is the price we pay for superior long-term returns.

While we cannot control external events, we can control how we position ourselves and how we respond. Our portfolios are constructed to withstand a range of outcomes, balancing risk and opportunity to maximise long- term returns.

Periods of market weakness often create opportunities for skilled fund managers to acquire high-quality assets at attractive prices. For long-term investors, remaining invested - rather than reacting emotionally - has consistently proven to be the more rewarding path.

Positioning for your time horizon

Your investment strategy should always reflect your time horizon:

• Long-term capital can be more heavily weighted toward growth assets such as equities
• Shorter-term needs require a more moderate and stable approach

This principle applies equally to both local and offshore investments.

A disciplined approach

At times like these, clarity of thinking and disciplined decision-making are essential.

Our integrated Wealthcare approach ensures that your portfolio remains aligned with your personal goals, time horizons, and life priorities - rather than short-term market noise.

Yours in health and prosperity,

Shane Thom, CFP^® GTP(SA)™
CEO | Key Individual | Integrated Wealthcare Advisor
Registered with: FSCA | SARS | CMS
Member: FPI | SAIT | COMENSA | CFA Institute

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