The Income and Growth Challenge - October 2020
2020 SEPTEMBER - Corolab Investment Guide
Reasons to feel a little more optimistic - September 2020
While Capital Plus and Balanced Defensive have not been able to reach their inflation-plus targets over the last five years (mainly due to anaemic market returns), we remain optimistic about the return outlook over the next three to five years. Both portfolios continue to hold a substantial weighting in South African bonds, both fixed rate and inflation linkers. The high real yield (currently around 9%) – thanks to well-contained inflation – is very attractive and provides a solid risk-adjusted building block towards achieving the portfolios’ targeted return of inflation plus 4% (Capital Plus) and inflation plus 3% (Balanced Defensive).