27four Style Analysis – Quarterly Note March 2021

On the back of the rally in local and global equity markets, value has experienced a dramatic turnaround, beating growth and momentum over the last two quarters. Over and above this, there have been a number of style based reversals, most notably small and mid caps beating large tickers as well as high volatility dominating the likes of quality and low vol. The past quarters style note will explore these changes as well as provide quantitatively determined estimates of style performance over the next quarter.

  • 30th April 2021
  • By 27four Investment Managers
  • Featured

Top 5 controversial AGM resolutions for April 2021

We exercise our voting rights on behalf of our clients diligently because we believe it is one of the most effective ways of entrenching corporate citizenry. We therefore review the voting issues per resolution at each annual general meeting and vote in line with our policy. In March, we voted on 90 resolutions of which 59 were in favour and 31 were against.

  • 28th April 2021
  • By 27four Investment Managers
  • Featured

Crisis come and go

A recent spike in inflation expectations has left many investors guessing how central banks would respond. Judging from the spike in yields of the widely watched US 10-year treasuries and selloff of long duration equites, it seems most investors expect the Fed and other central banks to tighten the monetary policy sooner than planned. We think the Fed will be more concerned about the stability of the financial system and sustaining the ongoing economic recovery more than inflation risk. Therefore, instead of tightening the monetary policy as expected, the Fed may go the opposite direction.

  • 19th April 2021
  • By 27four Investment Managers
  • Featured

More pain on the cards for long suffering SA consumers?

A recent spike in inflation expectations has left many investors guessing how central banks would respond. Judging from the spike in yields of the widely watched US 10-year treasuries and selloff of long duration equites, it seems most investors expect the Fed and other central banks to tighten the monetary policy sooner than planned. We think the Fed will be more concerned about the stability of the financial system and sustaining the ongoing economic recovery more than inflation risk. Therefore, instead of tightening the monetary policy as expected, the Fed may go the opposite direction.

  • 12th April 2021
  • By 27four Investment Managers
  • Media

The Just Energy Transition in South Africa – Implications and...

We exercise our voting rights on behalf of our clients diligently because we believe it is one of the most effective ways of entrenching corporate citizenry. We therefore review the voting issues per resolution at each annual general meeting and vote in line with our policy. In March, we voted on 90 resolutions of which 59 were in favour and 31 were against.

Equities duration: much ado about nothing

A recent spike in inflation expectations has left many investors guessing how central banks would respond. Judging from the spike in yields of the widely watched US 10-year treasuries and selloff of long duration equites, it seems most investors expect the Fed and other central banks to tighten the monetary policy sooner than planned. We think the Fed will be more concerned about the stability of the financial system and sustaining the ongoing economic recovery more than inflation risk. Therefore, instead of tightening the monetary policy as expected, the Fed may go the opposite direction.

  • 26th March 2021
  • By 27four Investment Managers
  • Media

Monthly financial markets outlook | March 2021

November lived up to its reputation of being generous, as it handsomely rewarded long-suffering investors with solid returns across all major asset classes. The FTSE/JSE All Share Index recorded its second-best performance for the year after gaining 10.5% while vanilla bonds and inflation linkers gained 3.25% and 1.95% respectively.

A year later: how the global economy is faring

It is now slightly more than a year since the World Health Organisation declared Covid-19 a global pandemic on the 11th of March 2021. Since then, our world was turned upside down. Millions of people died from the virus. The economic impact of the pandemic has also been severe. Our charts for this week show where global markets are on the recovery path. While markets are certainly not out of the woods yet, things are looking much better than in March last year. Several macro drivers are back to their pre-Covid levels and so are financial assets.

  • 19th March 2021
  • By 27four Investment Managers
  • Media

Our top 5 controversial AGM resolutions for March 2021

Governance issues — appointment of chairs and election of board members — dominated company resolutions in February. Governance issues have evolved over the past few years and so have the reactions to these issues. We voted on 143 resolutions in February: 100 in favour and 43 against.