Anet started her investment management career with Allan Gray in 1986, where she worked in a range of investment process roles over approximately seven years. She joined Syfrets Managed Assets (later NIB) in 1993, where she was responsible for the management of retirement funds across all asset classes and became the best performing fund manager in the team. Anet joined Quaystone (previously BoE Asset Management) in 1995 as a senior portfolio manager, and was later appointed chief investment officer. In 2000, she took on the role of managing director. She joined Sanlam Multi-Managers International (SMMI) in 2005.
Sanlam Namibia Global Fund - Sept 18
The third quarter of 2018 was an interesting quarter consisting of a buildup of pressures, which were most evident in the emerging markets, especially in relation to certain countries including Argentina and Turkey. Trade war tensions, primarily between China and the USA, continue to dominate financial headlines. As these issues develop, market participants have become increasingly concerned that the current tit-fortat tariff approach could escalate into something more serious. Meanwhile, in Europe, Brexit negotiations continued to be one of the major news issues, though the political landscape and budget process in Italy also has wide-ranging implications and has attracted justifiable attention. Geopolitical issues, including those on the Korean Peninsula, have remained relatively subdued during the period, but the potential for some of these to resurface remains. There were also some natural disasters, including severe flooding in Japan, though those are not expected to have any material long-term financial impact.
The US economy remains very robust as indicated by the 4.2% annualised growth rate for the second quarter of 2018, released during the third quarter. However, while this has been spurred by the Trump tax cuts at the turn of the year, the signs of US wage growth have been very slow to emerge, but there are incremental signs they are building. In the absence of material wage growth and other inflationary pressures, inflation remains contained, though in response to the strength of the US economy the US Federal Reserve raised interest rates by a further 0.25% during the quarter, bringing the rate to 2.25% (the upper bound). Elsewhere, the UK’s Bank of England saw Mark Carney extend his appointment until post the UK exit from the European Union, and there was a 0.25% interest rate rise in August, which many market participants believe is unwarranted. The European Central Bank has not yet formally raised interest rates but remains on a path of reducing liquidity, while the Bank of Japan is further behind that with monetary policy remaining very accommodative. In contrast, the People’s Bank of China continued on its easing path during the third quarter to fend off the current slowdown in China.
During the quarter global equity markets, as measured by the MSCI World Index, rose by 4.98%. This made the third quarter the strongest quarter of the year so far for equities. For the calendar months during the quarter, the MSCI World Index produced positive returns for all months of the quarter with July leading August and September as the pace of progress diminished over the quarter. As a result, global developed equities are up 5.43% for 2018 to the end of September. Examining the regional differences, in US Dollars, North America continues to lead the way and rose 7.01% during the quarter. Japan was the next best performing market and gained 3.68%, while Europe only returned 0.80% and the Pacific ex Japan region declined 0.55%. The weakness in emerging markets, referred to above, saw them decline by 1.09% for the quarter, and thus there was a second consecutive quarter of material underperformance versus developed markets. However, the market continued to see US Dollar strength and so in local terms all the major developed regions posted positive absolute returns, while emerging markets were effectively flat, being only 0.04% down.
At a sector level, all 11 sectors produced positive absolute returns for the quarter, except for the Materials sector, which returned -0.53%. The Real Estate, Energy and Utilities sectors were also relatively weak, as while all produced a positive absolute return, none of them managed to return more than 1%. In contrast, the Health Care sector returned 11.50% tolead all the other sectors, and Information Technology rose 8.14%. This was followed by Industrials and Telecommunication Services, which both outperformed the wider market, while the other remaining sectors underperformed the market.