The final quarter of 2019 boded well for risk assets globally as easy monetary policy and further progress regarding Phase 1 of the US-China trade deal discussions buoyed sentiment. Emerging market assets fared well, including South African government bonds. The positive global picture seemed to outweigh yet another depressing Medium Term Budget Policy Statement in October; as well as ongoing load shedding as Eskom continues to struggle to solidify a concrete turnaround plan.

The Citadel SA Bond H4 Fund ('the fund') delivered 1.6% during Q4-2019, slightly behind its benchmark which rose 1.7%. The fund's in-house managed government bond mandate marginally underperformed for the quarter, while the externally managed Investec Corporate Bond mandate outperformed. The fund continues to adhere to its policy.