Dear Readers,

The recent strong market performance in the US and indeed in South Africa has been welcome and encouraging. Like you, I am pleased to see our local and international funds and portfolios benefiting from this bull run, driven in part by the big tech companies, but also gold’s return to favour.

A deeper dive into the markets reveals a very uneven picture, however, with certain sectors really falling out of favour currently, such as healthcare and pharmaceuticals. One need only look at the highs and lows of European pharmaceutical giant Novo Nordisk to illustrate the point. Just over a year ago in June 2024, the share was trading at US$144; today you can pick up the same counter for just over US$50.

It is also the case that despite the stellar growth enjoyed by companies within the so-called Magnificent Seven, global trade tariff uncertainty and continued geopolitical concerns have detracted significantly from other sectors.

It is also interesting to note how asset managers are not only taking a long hard look at the US market, but simultaneously seeking to identify quality opportunities in emerging markets.

What can we conclude from this? The clear message is that there is a need for and value in active asset management. While long-term investing is recommended, simply buying shares or funds and leaving them in the bottom drawer is no longer an option. The artificial intelligence revolution on its own is set to disrupt companies and entire sectors in ways that are currently unimaginable. Indeed, the big debate and ponderable among asset managers today is which companies are best set and prepared to benefit from the AI revolution and which will fall by the wayside.

The good news for Warwick clients is that you enjoy the benefit of having a team of local and international advisors, analysts and fund managers who not only live and breathe the financial markets, but more importantly, whose mandate is to manage Warwick clients’ monies in a prudent manner, managing risk and maximising returns.

That brings us home to South Africa. While gold’s recent bull run has driven the overall JSE to record levels, of perhaps greater encouragement is the performance of some of our world-class companies that continue to deliver healthy growth and returns for our funds, all to the benefit of Warwick clients.

Again, the merits of active asset management are evident in the local market too. While enjoying the consistent growth of companies such as Naspers, Shoprite and Capitec, it is equally important to avoid the risks of nightmares such as Steinhof through active asset management.

This equation is the essence of good active asset management and something we at Warwick seek to achieve consistently for you, our valued clients.

Before closing, may I take this opportunity to wish all our female clients, professional partners, supporters and friends a very happy women’s month of August.

Until next time, take care and stay invested!