Now that’s entertainment! February started with the annual SONA bun fight and ended with …cringe!… the Oscars debacle. You would be forgiven for thinking both were theatre productions fresh from the fringe of an avant-garde arts festival. Sadly, they were not. Meanwhile, the Rand continues its winning streak, and we dedicate a large part of this month’s update to our beloved currency.
For years WellsFaber have been strong advocates of diversification through offshore exposure. However, when the Rand goes through a period of strength, the performance of offshore portfolios in Rand terms looks relatively bleak. A case in point is the past year’s performance of the MSCI World Index which returned 18.8% in USD, a great return by any standard. However, as a result of the Rand’s strength, in Rand terms the MSCI World Index delivered a less impressive 2%.