Risk assets delivered strong returns in Q2-2025, demonstrating resilience despite rising geopolitical tensions. A significant escalation in the Middle East conflict in June, following US strikes on Iran’s nuclear facilities added to global uncertainty. Nonetheless, markets were supported by a tariff pause initiated by President Trump, which lifted sentiment across major equity markets. Emerging market equities posted solid gains, benefitting from improved global risk appetite. Local bonds performed well aided by supportive capital flows and improved sentiment. The South African Reserve Bank (‘SARB’) cut its policy rate by 25 basis points to 7.25%, adding further support to domestic assets. The rand strengthened 3.4% against the US dollar during the quarter.

The Citadel SA Bond H4 Fund (‘the fund’) was up 5.5% for the quarter, marginally underperforming its benchmark. The externally managed Ninety-One Corporate Bond mandate outperformed SA bonds. Wehave opted not to invest any further capital in State Owned Enterprises (‘SOEs’) at this point.