Money, Markets and Masterminds Citywire South Africa

Morningstar South Africa’s Sean Neethling discusses the sentiment shift toward SA assets and what investors should pay attention to amid the government's coalition transition.
 
‘Welcome to 'Money, Markets, and Masterminds,' - a Citywire South Africa podcast that delves into the intricate world of finance, investment and strategic decision-making.  
 
Today is our second episode of a new underlying series, in partnership with Morningstar South Africa and its head of investments Sean Neethling.
 
The series, aptly called: ‘Mind over Markets with Morningstar’ provides the latest insights on monthly investment trends. 
 
For the foreseeable future, the first Monday of every month, we will be exploring key market developments and dissecting economic indicators, which will cover everything from equities and fixed income to commodities and alternative investments.
South African assets reacted positively to news of a coalition government, after the ANC lost its 50% majority in the results of the national election in May. Markets were especially positive about the announcement of a government of national unity (GNU) and specifically the potential partnership between the ANC and DA. 
 
There has been a clear sentiment shift with SA assets all rallying significantly over the last two weeks to 21 June.
Recent market movements suggest there is a SA-specific story underlying performance. The question is what are the main drivers, how sustainable is that performance and what should investors pay attention to as SA transitions into a coalition-led government?
Neethling discusses this and more in this episode.

Welcome to 'Money, Markets, and Masterminds' – a Citywire South Africa podcast – that delves into the intricate world of finance, investment and strategic decision-making.  
 
My guest today is Gareth Stobie, the founder of CoreShares, which has blossomed into a flourishing passive investment management business and ETF issuer. At the point of its acquisition by 10X Investments – not too long ago – it had approximately R13,8bn under management. 
 
Stobie is now director of strategy and corporate development at ETFSA and is working with other industry stalwarts such as Mike Brown and Nerina Visser.
Exchange-traded funds (ETFs)  have been around since the early 1990s, but in recent years their popularity has soared. Today, there are more ETFs listed on the JSE 222 to be exact) than single shares. In this podcast we'll explore what's driving this surge, the latest trends shaping the ETF landscape and what investors should keep an eye on moving forward.

In this podcast interview with Numsa deputy general secretary Mbuso Ngubane (pictured below) at Citywire South Africa’s annual retreat in Fancourt, the union boss emphasised the importance of the working class being more active in the economy and owning the means of production.
Numsa is the biggest trade union in South Africa with around 340,000 members. Mbuso is a key member of the executive committee and his responsibilities include directing the day-to-day operations and managing relationships with strategic stakeholders of Numsa members across a myriad of sectors including retirement funds in the manufacturing, mining and automotive sectors.
He also wants workers to have power over their own retirement savings, thus allowing them to meet their obligations and purchase property to create generational wealth. 
He said there is an urgent need for more purposeful behaviour in government in addressing these shortcomings and he questioned the election results, stating that they did not reflect the working class’s ambitions. 
Listen to this explosive Citywire interview below, which reveals how fragile the relationship between organised labour and government is.

Today is our first episode of a new underlying series in partnership with Morningstar South Africa and their Head of Investments - Sean Neethling, who was on the show not too long ago.
This new series is aptly called: ‘Mind over Markets with Morningstar’ and will provide the latest insights on monthly investment trends. 
So, for the foreseeable future, the first Monday of every month, we will be exploring key market developments and dissecting economic indicators, which will cover everything from equities and fixed income to commodities and alternative investments.
US Equities have continued to dominate global markets since the world emerged from the COVID-19 pandemic in 2020 and have been supported by exceptional performance by American tech companies, the so-called Magnificent Seven, leading valuations to all-time highs. 
According to Morningstar data The S&P 500 returned 29.8% over the 12 months to end March 2024 and the Nasdaq delivered 39.2% over the same period.  In short, if you had exposure to US equities, especially, listed tech stocks, you would have been in a very fortunate position today. 
It seems that Nvidia continues to be the standout with the company maintaining its competitive edge in generative AI but we are starting to see some divergence in the performance of US tech companies.
Given the mixed earnings reports and the unclear path of interest rates in the US, what performance indicators should investors focus on to navigate this potential fork in the road for American tech companies?
Listen to this podcast to find out. 

The two-pot retirement fund system is the most significant reform that the local pension fund industry has seen in recent years.
Besides getting a handle on the legal changes — including the Revenue Laws Amendment Bill and the Pension Laws Amendment Bill —each private and public fund will also have to amend its rules to accommodate the new regime. 
 
The Financial Sector Conduct Authority - or FSCA for short - already allowed the funds that fall under its jurisdiction to start submitting their rule amendments from the beginning of the month. Rule amendments must be approved, or funds won’t be able to seed the savings pot or pay out withdrawals.
 
But if the red tape is not enough to keep administrators up at night as the 1 September deadline looms, industry experts have warned that the expected volume of withdrawal applications could add fuel to this fire. 
 
Tackling misinformation about the new system will also be tricky. It is for this reason that I invited John Anderson, Executive: Solutions and Enablement at Alexforbes into the studio today to help navigate Citywire listeners through some of the details of this expected frenzy.
 
Some of the misconceptions cleared up in this episode include the fact that the new system is indeed starting on September 1, despite some beliefs to the contrary. The initial setup of the savings pot is not a one-time opportunity; it will be accessible annually under certain conditions. And Not everyone will receive the maximum R30,000; it’s based on 10% of their accumulated savings, subject to a cap.
 
Tune in to understand some of the finer details around the new regime and find out more about the importance of thorough preparation and clear communication as the industry transitions to this new system, which ultimately aims to improve retirement outcomes for its members.

In this episode, we delve into the essential topic of default regulations and their impact on investors and retirees. We'll explore the significance of these regulations for investment portfolios, the crucial roles of trustees and financial advisers and the strategic setup of the Investment Policy Statement. Discover how these regulations, implemented in March 2019, guide the provision of default investment portfolios and influence retirement savings strategies, including post-retirement products like annuities. Joining us today is Johann Peens, an independent registered financial adviser with the Financial Planning Institute of South Africa. Johann shared his expertise on advising clients about these regulations and ensuring they receive good value for their retirement savings. Tune in to learn how standardised practices can help members retire comfortably and how the two-pot retirement system has made independent advice more important than ever before.