The FTSE/JSE All Share Index (ALSI) increased by 3.3% during December. FTSE/JSE Shareholder Weighted Index (SWIX) increased by 3.7% and FTSE/JSE Capped Shareholder Weighted Index (Capped SWIX) increased by 3.1%. The Rand strengthened by 4.6% during the month. Resources, Industrials and Financials increased by 7.0%, 2.3% and by 0.7% respec..vely.

During December, Bonds increased by 1.9% and Cash returned 0.6%. The MSCI Emerging Market Index increased by 7.2% (USD), outperforming the MSCI World Index which increased by 2.9% (USD). The MSCI South Africa Index increased by 9.6% (USD).

During December Iron Ore fines increased by 2.6% to $86.0/t and Thermal Coal decreased by 4.4% to $73.5/t. Brent Crude oil increased by 10.3%, ending the month on $66.0/bbl. Gold was up 3.6% to $1517.3/oz and Pla..num increased by 7.9% to $966.6/oz. Palladium increased by 5.6% to $1945.6/oz.

Precious metals remain our favoured investment sector. We expect ongoing geopoli..cal risk as well as central bank easing to maintain gold’s upward price momentum, pulling pla..num alongside. The restricted supply of rhodium and palladium provide suppor..ve fundamentals outweighing any threats of slowing auto demand, we remain of the view that we are in an upcycle and the PGM producers should con..nue to outperform. Iron Ore strengthened during the month underpinned by Vale’s guidance that it’s unlikely to meet its produc..on target. We also saw large draw downs in China which reads well for demand and is suppor..ve of metal prices.

The VIX Index (Vola..lity or ‘Fear’ Index) increased by 9.2% to 13.8 during December.

During December the SA macro remained somewhat subdued and the severe load shedding experience at the beginning of the month will have an adverse effect on investor sen..ment as well as the economy most notably tourism, one of SA’s key GDP contributors during the December month.

The fund’s performance was posi..vely affected by posi..ons in Impala (27.5%), Sibanye (24.3%), Northam Pla..num (15.5%) and Naspers (9.4%) while posi..ons in Truworths (-3.7%), Woolworths (-6.9%), Richemont (-1.7%) and Foschini (-1.5%) detracted from performance. The fund invests in a number of focussed strategies. Amongst these strategies we are overweight Earnings Growth (Rand Hedge Consumer Discre..onary), Cyclical (Diversified Mining, Pla..num), Defensive (Gold Mining) and Value (Property, Local Consumer Discre..onary).