The fourth quarter of 2022 saw several major benchmarks claw back some of their losses on expectations that central banks would slow down interest rate hikes. The sentiment seems to have been sparked by positive inflation surprises in the US and Europe. Domestic equities delivered double-digit returns, with the JSE All Share Index rising 15.16% driven by resources, industrials, and financials, which surged 16.14%, 15.67%, and 12.90% respectively. Domestic property also rebounded, rising 19.31%.

Local nominal bonds (5.78%) did well, while inflation linkers rose 1.98%. In the offshore market, the MSCI World Index jumped 9.42%, underpinned mainly by European equities which gained 19.42%. Bonds avoided ending the calendar year in the bear zone after jumping 4.6%. However, the rand appreciated against the US dollar negating some of the dollar gains from offshore assets.

27four Stable Fund delivered a satisfactory return of 5.54% for the quarter, 71 basis points above its benchmark. Asset allocation and manager selection both played a role in the
performance. Macroeconomic conditions are extremely uncertain. Nevertheless, we will monitor these developments and make necessary adjustments to our portfolios as necessary. The portfolio has adhered to its policy objective.