The Northcliff Investor’s Club held a breakfast seminar at Benvenuto Conference Centre in Kelland on 12 May, sponsored by PSG Northcliff.
The guest speaker for the seminar was national head of distribution at Coronation Fund Managers South Africa Peter Kempen.
The seminar dealt with realistic return expectations in the South African economy for the next 10 years.
Kempen started his presentation with a brief overview of global economic growth, ranging from the European, American, and Chinese markets. He stated that the American global market is currently the strongest and on the rise. He then reflected on the local domestic market, pointing out that the overall South African economy has remained relatively weak. “The South African economy remains in a weakened state, highlighted by many disappointing company results, reflecting a tough environment,” he said.
Kempen pointed out that there was a main future expectation to consider going into the next decade. This is that global investors share the same return expectations as the local investors do in terms of higher market costs and lower returns. “Real returns on equities are expected to be half of what they were in the last 35 years,” he said.
Co-principal at PSG Northclif Tommy Ferreira shared the following on economic expectations going into the next decade: “Diversifying globally in terms of investments is very important. The importance of choosing the right investment partner and organisation is crucial in managing a steady return, especially in times like these, with high market costs and low returns,” he said.
