1st Quarter Investment Report March 2021

Zee Gumede Healthcare Consultant   _______________________________________________________________________________________________________ Substance abuse and the recovery support of medical aid schemes in South Africa In South Africa, medical aid schemes dominate in the financial support structure for accessing quality healthcare.  As to whether medical aids provide cover for substance abuse treatment, members are often uncertain. Substance abuse increasingly affects a significant portion of the South African population, with as many as 15% estimated to suffer from drug addiction.  It encompasses the harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to negative health consequences and financial burdens.  Factors contributing to substance abuse range from genetic vulnerability to environmental stressors and societal pressures. According to the South African Society of Psychiatrists (SASOP), it is estimated that between 15 to 20% of the South African population suffers from drug addiction in one form... Read More

Gary Mockler Group Chief Executive Officer _______________________________________________________________________________________________________ (Electricity) Wheeling and Dealing What is it, how does it work, and how can this become an investment opportunity? Why Electricity wheeling, globally recognised as a contemporary component in the modern energy landscape, not only facilitates the efficient transfer of electricity but also presents a lucrative investment avenue for discerning investors. Traditionally used as a mechanism for utility networks to balance supply and demand, wheeling has evolved into an attractive proposition for investors willing to back electricity producers. How At its core, electricity wheeling refers to the process of transmitting electricity from one location to another through existing transmission infrastructure.  This mechanism enables electricity producers, whether they are renewable energy developers, independent power producers (IPP’s), or our sole utility company, Eskom, to transport their generated electricity to consumers or markets where demand is... Read More

  Manty Seligman Director – Asset Management     _______________________________________________________________________________________________________ South African investment markets amidst food security challenges Investing in South African markets amidst food security challenges is a dynamic endeavor.  Climate variability and socio-economic disparities can create significant fluctuations, impacting agricultural commodities and broader investment opportunities.  However, within this complexity lies the potential for astute investors to navigate and uncover valuable insights.  At GTC, we’re constantly identifying and reviewing these potential opportunities – also mitigating possible risk – and crafting resilient investment strategies tailored to meet our clients’ long-term success. Financial planning often requires traversing diverse and complex landscapes.  It is not always an exact science.  South African investment markets are no exception, with the intricacies of food security presenting unique challenges that demand strategic navigation. Ensuring food security stands as a distinct challenge in South Africa, influenced by... Read More

In-depth market commentary – All that glitters may be gold… The global investment market backdrop remains mired with uncertainty as we end the first quarter of 2024 and will likely persist for the remainder of the year.  Conflicting economic data with structurally higher inflation has necessitated that restrictive monetary policies stay in effect.   As previously communicated, heightened risk factors require continued caution in portfolio positioning. Over the quarter: Global developed market equities rallied +8.8%, well ahead of emerging market equities of +2.4% in U.S. dollar terms.  The dollar strengthened +3.4% relative to the rand, further providing a tailwind to offshore assets’ rand-based returns over the quarter. Despite a strong March return, the local equity market remained negative over the quarter, pulled down by poor returns in January and February.  The financials sector ended the quarter in the red (-7.1%), while... Read More