Satrix Semi-Annual Snapshot 2025H1

We recently hosted the Satrix Semi-Annual Snapshot 2025H1 with Kingsley Williams, Chief Investment Officer, Nico Katzke, Head of Portfolio Solutions, and Ruan Uys, Head of Retail Distribution at Satrix*. They discussed market drivers this year, recapped the movements so far, and shared their perspectives on what to expect in H2 2025. The conversation covered index returns, industry fund flow updates, the importance of investment term, investment trends in South Africa, as well as a review of multi-asset SAA and performance.

Global Markets: Gold Glitters, China Rebounds, India Holds Steady

The first half of 2025 got off to a bumpy start. Markets dipped, surged, then dipped again. If you weren’t watching closely, you probably missed a few key turns. But if you stayed invested, especially in equities, you likely did well.  

Gold led the way, with emerging markets outperforming their developed counterparts. China’s recovery surprised many, while India remained strong, though not quite the standout it was last year.

Local Markets: Solid Returns and a Strong Rand

Local equities delivered double-digit returns, with resources leading the charge. Bonds returned nearly 17%, which is impressive with inflation hovering at around 3%. The rand has held its own against the dollar, which supports investor confidence.

Active Managers vs Indexation: A Challenging Year for Stock Pickers

Active managers faced a tough environment. According to Kingsley Williams, Chief Investment Officer, the median active manager underperformed the market benchmark over the past year. And it wasn’t just a one-off. Even when conditions favoured stock pickers, many still didn’t outperform. It might be hesitation to take risks in uncertain times, or the pressure to deliver short-term results. Either way, it remains a challenging role.

Indexation: A Consistent Approach

So, what’s working? Indexation is working not just because of lower fees but because it delivers consistency. Kingsley shared that Satrix’s A1 class unit trust equity index funds delivered above median, and in some cases top quartile, performance over one, two, three and five years relative to their respective categories. That’s across volatile markets. While some say you need to be nimble in tough times, the data suggests that staying the course might be the smarter move.

ETFs: Growing Fast and Making a Difference

Satrix ETFs on Linked Investment Service Provider platforms have now passed R11 billion

Advisers and Discretionary Fund Managers (DFMs) are building model portfolios with ETFs alongside unit trusts.  ETFs tend to have lower total expense ratios and total investment costs, which is always a win for clients.

A Personal Reflection: Staying Invested and Thinking Ahead

Kingsley reflected on his own journey, discussing potential future opportunities.

One comment, in particular, struck a chord with the audience:
“Remaining invested rather than agonising about the next crisis has been a great strategy to unlock the power of compounding growth.”

Key Takeaways

• If you remained invested, especially in equities, you probably did well.
• Gold and emerging markets were the stars globally. Locally, resources and bonds delivered solid returns.
• Active managers had a challenging year. Index funds stayed steady and strong.
• ETFs are growing fast, especially on platforms that advisers use every day.
• Strategic asset allocation, done correctly and reviewed periodically, really does pay off.
• At times, the most effective strategy is to remain invested and allow compounding to work over time.

The session offered valuable insights – some anticipated, others unexpected – and a few moments that prompted thoughtful reflection.

Watch the insights here.

To quality for CPD points watch the full webinar here.

Disclaimer:

*Satrix is a division of Sanlam Investment Management.

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