Ninety One Unscripted | An incisive view of the world

The fast view

• On the global front, whilst the Chinese regulatory crackdown has provided headwinds for growth, the policy reset may be structurally good for the long term. Not all industries have been impacted and the clean energy sector has regulatory tailwinds.
• Ninety One Global Strategic Managed Fund is currently invested in less cyclical and more growth/quality-focused stocks, underpinned by solid valuations. We also continue to find opportunities in the area of sustainability, such as battery manufacturers.
• On the local front, while the ANC performed poorly in the municipal elections, Cyril Ramaphosa’s position is not weakened as the consensus is that he remains the party’s strongest brand and the ANC would have performed worse without him.
• Expect the President to accelerate the process of ensuring clean governance and improving service delivery, given that the election results indicate these issues are not being tackled quickly enough.
• A big catalyst for unlocking growth in South Africa is the infrastructure opportunity, with energy and spectrum featuring high on the list. Many believe that this is what the President wants to leave as his legacy.