BofA: Equity allocations up, cash levels down
South African fund managers have turned more bullish on the local equities and bonds after South Africa’s national election. According to Bank of America, fund managers surveyed expect the JSE all share index to hit a record 86,000 points in the next 12 months from 85,000 points previously. Furthermore, 82 per cent of fund managers say they would bring back offshore funds if domestic returns look superior. CNBC Africa is joined by John Morris, Strategist, BofA South Africa.
Mon, 24 Jun 2024 11:11:35 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Survey shows fund managers anticipate JSE all share index to reach record high, reflecting bullish sentiment.
- Majority of fund managers willing to repatriate offshore funds in favor of superior domestic returns, signaling confidence in local market potential.
- Factors driving positive sentiment include undervaluation of equities and bonds, potential for sustained economic growth, and impact of a weaker dollar on interest rates.
South African fund managers are expressing a higher level of optimism towards local equities and bonds following South Africa's national election. According to Bank of America, fund managers surveyed anticipate the JSE all share index to reach a record 86,000 points within the next 12 months, up from the previous estimate of 85,000 points. Additionally, 82 per cent of fund managers indicated their willingness to repatriate offshore funds if domestic returns outperform international markets. This positive sentiment is being driven by several factors including the outcome of the recent election and the potential for policy reform and economic growth. The survey results indicate a significant bullishness among fund managers, with a majority expressing confidence in the local market's future performance. Amidst the ongoing uncertainty surrounding the new government formation, fund managers remain optimistic about the potential for South African assets to deliver superior returns in the medium to long term. Key themes in the survey include the undervaluation of equities and bonds, the prospect of sustained economic recovery, and the impact of a weaker dollar on local currency and interest rates. The positive outlook for South Africa's economy and financial markets suggests a promising outlook for investors in the months and years ahead.
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