Prescient Investment Management

BY: BASTIAN TEICHGREEBER, CHIEF INVESTMENT OFFICER AT PRESCIENT INVESTMENT MANAGEMENT

South Africa’s rand has had an exceptionally volatile year, almost reaching R20 to the dollar in May before strengthening to about R17.27 in late July and then weakening again to trade between R18 and about R19.30 to date. Most notable about the domestic currency’s weakness is that it has been weak on a relative basis compared with some of the other emerging market currencies and not just against the US dollar, which suggests that there are other forces at work.

BY: MICHELLE GREEN, CREDIT ANALYST AT PRESCIENT INVESTMENT MANAGEMENT

In recent years, there has been a significant shift in the landscape of lending and financing in the US, with a notable surge in the popularity and growth of private credit funds. These funds have gained traction as an alternative to traditional bank lending, and their rise can be attributed to various factors reshaping the financial sector.

BY: SEEISO MATLANYANE, HEAD OF EQUITIES AT PRESCIENT INVESTMENT MANAGEMENT

Stock market indices have long been used to convey the performance of the stock market and their importance has increased with the increasing universe of passive investments that track different indices. Popular examples of indices that investors monitor include the S&P 500 index in the US, the Eurostoxx 600 Index in Europe, or the Nikkei 225 Index in Japan, all considered benchmark measures for investment performance.

By CONWAY WILLIAMS, Head of Credit, Prescient Investment Management

The intricate interplay of various factors often dictates the trajectory of growth and stability within a nation's financial landscape. One such critical determinant is the interest rate set by the central bank, which can significantly influence a nation's economic direction.

BY REZA ISMAIL, HEAD OF BONDS AT PRESCIENT INVESTMENT MANAGEMENT

Since late April 2023, global developed bond markets have sold off conspicuously. In recent weeks, the yield on 30-year US Treasuries hit a 16-year high reaching 4.95 per cent for the first time since 2007 - before the Great Financial Crisis. In a sign of the pervasive impact of the sell-off, German and Italian borrowing costs also hit their highest levels for more than a decade.

BY: CONWAY WILLIAMS, HEAD OF CREDIT AND SAJJAAD AHMED, QUANTITATIVE ANALYST AT PRESCIENT
INVESTMENT MANAGEMENT

In the rapidly evolving landscape of asset management, integrating quantitative and qualitative skills has emerged as a pivotal trend shaping the industry's future. Quantitative and qualitative approaches bring unique strengths to the table, and it's increasingly evident that synthesising these skill sets is essential in achieving investment success.

BY CONWAY WILLIAMS, HEAD OF CREDIT AT PRESCIENT INVESTMENT MANAGEMENT

South Africa faces the significant challenge of transitioning away from coal, long a cornerstone of South Africa’s development, to cleaner, more environmentally sustainable renewable energy. But encouraging prospects for additional funding sources and promising public-private sector collaboration make this delicate balance possible despite the naysayers.

BY: NABEEL KOLIA, PORTFOLIO MANAGER AT PRESCIENT INVESTMENT MANAGEMENT

In the complex landscape of global economics, few metrics have as much influence as the debt-to-GDP ratio – a fundamental indicator that offers a window into a nation's financial well-being and a powerful gauge of its fiscal health and stability. Yet, relying solely on this solitary metric is akin to peering through one window in a multiroomed house.

BY: CONWAY WILLIAMS, HEAD OF CREDIT AT PRESCIENT INVESTMENT MANAGEMENT

Corruption, a skills gap, fragmented planning and coordination and political stability stand in the way of infrastructure reaching its potential in driving economic progress and societal advancement across Africa. The pervasive mismanagement of infrastructure projects across the continent, and South Africa as a regional economic powerhouse, has far-reaching consequences for the continent, impeding economic growth, social development, and sustainable progress.

BY HANNAH DE NOBREGA, QUANTITATIVE ANALYST AT PRESCIENT INVESTMENT MANAGEMENT

It is difficult to assess what an expanded Brazil, Russia, India, China, and South Africa (BRICS) grouping will mean for South African trade fortunes and broader economy amid the shifting global power dynamics between North and South, East, and West. However, there are several advantages that could be harnessed, all going well, including improving access to funds, and fostering collaboration across the member countries in developing infrastructure and industrialising.

BY: MICHELLE GREEN, CREDIT ANALYST AND CHAIR OF ESG COMMITTEE AT PRESCIENT INVESTMENT
MANAGMENT

Last week the Cabinet approved a new State-Owned Enterprise (SOE) plan, which will lay the basis for private equity investment in state companies and listings on the stock exchange. It has already stirred significant debate and discussion – and rightly so, because full or partial privatisation by countries around the world has been met with mixed success.

By: Conway Williams, Head of Credit at Prescient Investment Management 

South Africa has taken great strides in deploying private sector capital into renewable energy projects, giving the 
chance at improving energy resilience and combatting climate change. But 2024’s twin challenges are expanding the 
the national power grid and making significant advancements in energy storage technologies