A measured start to the year
The first quarter of 2026 has rewarded patience. Global equities absorbed two meaningful drawdowns in January and March, and our Growth and Growth Plus strategies held their positioning through both. The message from our investment committee remains unchanged: we do not attempt to time short-term moves — we ensure the portfolio's long-run exposure is earning the risk premium you are being asked to bear.
Inside this edition, Eugene walks through the macro view underpinning that conviction, and our head of portfolio construction covers the two tactical adjustments we have made since the year began.
Where we think the cycle is heading
The rand has strengthened 2.1% against the US dollar year-to-date, but remains within our fair-value corridor. Global emerging markets have outpaced developed markets on a year-to-date basis — a reversal of the trend that dominated the last two calendar years.
We covered the implications in more depth on the blog earlier this month.
Rebalancing notes for Q1
We made two changes this quarter across the local range: a 3% trim to SA property in the Balanced and Growth mandates, and a 2% increase in offshore equity via MSCI World. The offshore range was rebalanced on 14 March to bring equity allocations back to target after the February run-up.
A reminder: all model portfolio changes are reflected automatically in managed client accounts. If you hold any positions on a DIY basis, your advisor will be in touch to discuss whether the changes apply to you.
New products on offer — and two maturing in Q2
HW-DPI-2023-02 and HW-GEQ-2023-05 both reach maturity in May. If you hold either, your advisor will reach out in the next fortnight with reinvestment options and a summary of terminal performance.
Two new products are currently open for subscription, both with underlying exposure to a basket of global quality equities and conditional capital protection.
Retirement annuities — what we get asked most
With tax year-end behind us (and for many of you, an RA top-up concluded), we have pulled together our most-asked questions on how RAs work, the new Regulation 28 rules, and why contributions made in the last two weeks of February matter for your 2025/26 return.
A small reminder for the new tax year
The new tax year opened on 1 March. That means your TFSA allowance (R36,000) has reset — if you plan to contribute, making the transfer early in the year gives the invested capital an additional 11 months of tax-free growth compared with a February top-up. Small detail, meaningful over a decade.
As always, reach out to your advisor directly with anything that needs attention. We will be back in July with the mid-year review.