In a note on asset allocation and strategy, Anchor Capital said the balance of risks has shifted increasingly in favour of SA equities. The domestic economy is improving from a low base, inflation remains contained, fiscal credibility has strengthened, and structural reforms continue to move in the right direction..
Consensus expectations for domestic earnings remain relatively subdued despite a more supportive macro backdrop, improving business confidence, and the prospect of gradually strengthening economic activity over the next year, said Anchor Capital chief investment officers Nolan Wapenaar and Peter Armitage.
In a note on the asset and wealth management, and investment advisory firm’s third quarter strategies, they said geopolitical uncertainty remains elevated, but the broader macroeconomic backdrop has become more constructive, supported by lower energy prices, resilient global growth, improving domestic fiscal fundamentals, and supportive commodity prices, which all provide a favourable environment for risk assets over the medium term.
“Our conviction in SA equities strengthened during the second quarter of 2026, prompting us to move overweight local equities in our strategic asset allocation. We forecast a total return of about 14% over the next 12 months, supported by improving domestic fundamentals, attractive valuations, and potential for a less restrictive US interest-rate environment than is currently reflected in market pricing,” they said.
