South African fund managers adopt cautious optimism as gold positions rise

SOUTH African fund managers are preferring a high gold positioning as the country’s economic growth outlook and confidence in reforms dim, Bank of America (BofA) data showed on Wednesday.

- TAWANDA KAROMBO

Confidence in South Africa’s economic growth prospects has been dimming on the back of disagreements within the government of national unity (GNU). Geopolitical risks were also weighing in as the US and China tariff wars entrench although President Donald Trump this week hinted at a climb-down.

BofA’ latest South Africa Fund Manager Survey nonetheless reflected a “high positioning relative to history in gold, banks and bonds. This comes as a “growth and reform hopes dim” with the top risk being “political shifts” to the left.

BofA noted “a net 38% see ‘reform slowing’ (against peak reading of a net 56% September 202)” against the backdrop of local and global missteps.