Balanced and Equity - Patience and diversification reward investors post-COVID

The considerable volatility seen in global markets over the past year has created opportunities for balanced funds, which have the flexibility to switch between global and local equities, bonds, listed property and cash. The challenge for fund managers has been to understand the structural changes in the business sector that resulted from COVID-19, most notably the acceleration of technology utilisation, and to select the companies that are best able to adapt, now and in the future. The companies that will thrive and deliver good-quality earnings growth in the long term are those that offer an innovative product or service in these new market conditions, or that are able to make value-accretive acquisitions. The STANLIB Balanced Fund currently favours platinum group metals (PGMs) companies within the materials sector and selected healthcare. With a focus on quality growth companies, the fund is aiming to deliver returns well in excess of inflation for investors who are prepared to take a long-term view.

STANLIB is an authorized financial services provider in terms of FAIS and a registered Manager in terms of CISCA.