Anglican Church of Southern African

Monthly Investment Report - Retirement Fund

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November 2021

In November, the best performing local equity indices were Resources and Industrials
at 6,5% and 5.7%, respectively and the ALSI closing at 4,5%. The local fixed income
market was muted at 0.7% and listed property performed in between the two at 2.2%.
The underperformers were Financials at -2.6% and All Share Mid and Small Cap at
-1.6% and -1.8%, respectively.

The November 2021 MTBPS re-affirmed the fiscal strategy that was set out in the 2021
Budget. National Treasury projects a primary fiscal surplus in 2024/25. The main
budget deficit is expected to moderate from 6.6% of GDP in the current year to 4.9%
of GDP by 2024/25. Compared with the 2021 Budget Review estimates, both metrics
have improved.

On Thursday, 18th November, The South African Reserve Bank’s Monetary Policy
Committee (MPC) decided to raise the repo rate by 0.25% to 3.75%. Economists were
split on the outcome, as local inflation rate remained the same as the previous month
at 5.0% year-on-year for October and still within the inflation target band of 3-6%.
Beyond the recovery, the MPC has highlighted the importance of structural reforms in
assuring higher and sustainable growth in South Africa.

The investment climate would be improved with the provision of sufficient energy for
growth, reducing the impact of administered prices on overall inflation and stabilising
public debt, among other things.

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