September was characterized by high volatility in the local equity markets. The benchmark gained 7% during the first 2 weeks of September, only to reverse most of the gains by month end. The Fund recorded a gain of 2.3% for the month, with the year to date return contracting by -0.6%. Volatility increased on the back of mixed economic data as well as international events.

On the positive side, SA 2nd quarter GDP print came out higher than expected at 3.1%, while internationally; concessions were made on tariffs by US and Chinese officials which in turn reinforced global risk appetite. This was short lived. The SA current account deficit widened and the business confidence index contracted.

The SARB left interest rates unchanged, disappointing some investors hoping for a more supportive economic policy setting. Internationally, an attack on Saudi Arabian oil refining facilities started the negative pressure on the global risk appetite, leaving the local equity market under pressure at month end.