Dear Investor,

There’s no doubt that watching hoist the trophy after ’s decisive victory at the 2019 bolstered our nation’s spirit and pride. It also served as a timely reminder that South Africans are incredibly resilient.

Coach had a goal when he took over coaching in March 2018. He wanted to elevate the national team’s game, and to do this he needed a solid and unwavering long-term strategy. Maximising potential meant transforming the players from mediocrity into a fully-fledged professional team that could overcome all odds to perform at their peak. But it certainly didn’t happen overnight, or without incident along the way.

As it is with World Cup Rugby, so it is with growing your money: investing is a long-term game that requires consistency, persistence and an eye on the eventual goal. For some, that target is a comfortable retirement, for others it’s their children’s education. Investments can be utilised for further investment, like buying property or starting your own business. But whatever your personal goals, staying the distance is key.

Time and again, the research shows that taking our eyes off our end goal and leaving the market in reaction to a moment of socio-political uncertainty equals missing out on significant potential investment growth. While markets can – and frequently do – recover, the loss of time in the market can seldom be recuperated.

It might feel tempting to withdraw existing investments or not to invest at all. Immediate needs sometime clouds our desire to invest money. But it’s precisely in moments of seeming unpredictability that we need to stay focussed on the long-term goal.

There is a saying in isiXhosa: ‘Kukho umvuzo ekunyamezeleni.’ You reap great rewards with perseverance. As with anything that’s important in life, staying invested and keeping the goal in mind are key to success.

Despite continued policy uncertainty, the strengthening relationship between government and the private sector with a common objective of inclusive growth is encouraging. Although Moody’s altered SA’s economic outlook to negative, we still managed to retain a place in the investment-grade stable, and this is positive news indeed.

While we can’t control local or global economic factors, we can control when we invest, how we diversify our portfolios, and how long we stay in the game. And, really, that’s all we need when it comes to long-term gains.

Here’s to keeping your eyes on the goal! Have a safe and enjoyable holiday season. Thank you for your continued partnership with Old Mutual Unit Trusts.

If you need more information, please visit https://www.oldmutualinvest.com/home, contact your financial adviser or call our service centre at 0860 234 234.

Regards

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