Ashburton Investments, the asset management arm of the FirstRand Group, is looking to government bonds and listed property to provide the best risk-adjusted returns on the local front for South African investors in 2020.
And the asset manager remains constructive on global equities, particularly in emerging markets.
Nico Els, Multi Asset Strategist at Ashburton Investments, said South African government bonds with 10 year yields of around 9,2% were likely to provide investors with a very good return.
“When you consider our latest consumer inflation for November came in at 3.6%, the lowest in nine years, that’s a potential real return of over 5.5%.”
Els also likes local listed property for similar reasons.