Foreword | Issue 71 | 3rd Quarter 2024

DID YOU KNOW? HAWKS AND DOVES

The terms ‘hawkish’ and ‘dovish’ in finance stem from the contrasting behaviours of hawks and doves. Hawkish policymakers focus on controlling inflation — often by raising interest rates — symbolising aggression and vigilance. In contrast, dovish officials aim to stimulate economic growth and reduce unemployment by keeping interest rates low — reflecting peace and gentleness.

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THE US PRESIDENTIAL ELECTION: WHAT INVESTORS NEED TO KNOW
As the US approaches its presidential election, the stakes extend far beyond political leadership — the economic ramifications are substantial and global in reach. With Kamala Harris leading Donald Trump in national polls — the potential policy shifts could significantly impact markets, taxes, regulations, and investment strategies. Portfolio manager BRIAN ARCESE looks at key investment themes facing the presidential candidates and how the election outcome could move markets.
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WILL SOUTH AFRICA'S CAUTIOUS RATE CUT CUT IT?
The South African Reserve Bank’s recent decision to cut interest rates by just 0.25% signals a measured approach as the global rate-cutting cycle gathers momentum. As central banks around the world react to easing inflationary pressures and slowing economies, South Africa is navigating its own unique set of challenges. Portfolio manager RASHAAD TAYOB examines the implications of the SARB’s decision and what investors can expect from future rate adjustments.
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LOCAL IS LEKKER FOR THE FOORD EQUITY FUND
The Foord Equity Fund has been a stalwart of South Africa’s Equity—General unit trust category for 22 years. On 1 October 2024 the fund changed sectors to the newly introduced SA—Equity—SA General sector, which is for general equity funds investing solely into South African equities. Director PAUL CLUER looks at the reason for the move and revisits the Foord Equity Fund’s investment objectives and accomplishments.
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POTLUCK WIN FOR THE SOUTH AFRICAN FISCUS
South Africa has finally overhauled its pension system to mandate the preservation of retirement savings until retirement age. The so-called ‘two-pot’ retirement system — introduced via the Revenue Laws Amendment Bill — came into force on 1 September 2024. Investment professional LINDA EEDES highlights the implications for the fiscus, corporate earnings and the broader economy.
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PROTOCOLS TO SAFEGUARD AGAINST FRAUDULENT ACTIVITY
In today’s fast-changing financial world, fraud is an unfortunate reality we all face. As sophisticated criminals increasingly use advanced technologies like artificial intelligence and deep fakes, financial institutions are having to step up their defences to protect their clients. These developments can feel overwhelming, but your security is our top priority. ARLENE HERBERT explains Foord’s key processes and protocols to protect against fraud.
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MARKETS IN A NUTSHELL
We summarise the market movements for the latest quarter.
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