It is important that your investments are protected from the erosion of inflation and that the value, or purchasing power, is maintained. Your savings need to grow by an investment return that is above inflation over the long term (ten years and more).

By delivering returns comfortably higher than inflation over the last ten years, the High Growth Portfolio is succeeding in growing the value of savings over the long term (see the chart above).

The significant events happening worldwide have resulted in heightened uncertainty, making it difficult for investors to predict outcomes. Examples include high inflation in the United States and elsewhere, renewed Covid lockdowns in China that are impacting supply chains, and the war in Ukraine.

These events have a significant and unpredictable impact on the worldwide economy, and therefore on global financial markets. In South Africa there is much the same uncertainty, with some added issues such as loadshedding. The markets have experienced extreme movements with unusually high positive and negative returns changing daily. Given the nature of these uncertainties, the extreme movements may continue for some time to come.