Underlying manager views on elections and Sanlam Investments Multi-Manager investment approach
Election outcomes can influence market sentiment, but they do not determine investment outcomes in isolation. This framework considers four possible combinations of South African and US election conditions and explores how political developments could transmit through growth, inflation, fiscal credibility, yields, currencies and earnings.
This research was conducted through an analysis of our local underlying managers who considered both the South African and US elections, and global underlying managers who considered the US elections only. For both elections, the managers focused on coalition quality, Government of National Unity (GNU) durability, reform implementation, fiscal credibility, Treasury supply, inflation, the term premium and earnings resilience. Furthermore, the managers assessed the election implications on both global and local currencies and asset classes.
Election uncertainty: Sanlam Investments Multi-Manager’s investment approach
Sanlam Investments Multi-Manager’s approach is grounded in disciplined portfolio construction, manager research and market research. We build truly diversified portfolios and make tactical adjustments based on valuations and long-term fundamentals. This helps portfolios remain resilient when unexpected events occur. Elections may influence markets in the short term, but we do not position portfolios for a single political outcome. Brexit showed the risk of doing so, even when an outcome appears highly likely.
Five key election considerations for investors
What could the upcoming elections mean for investors? In this infographic, Sanlam Investments Multi-Manager unpacks five key considerations for South African and US investors, providing a clear overview of the potential implications and helping investors look beyond the headlines to focus on what really matters.