Diversification Is Working... Again. Here’s Why

If your portfolio felt “lighter” in August, you’re not imagining it.

South African equities climbed while the rand strengthened—and, on a five‑year view in US dollars, local equities now sit ahead of global peers.

That’s exactly why diversification earns its keep across cycles.

Snapshot - What Changed:

• JSE All Share: +3.5% in August, +23.6% year‑to‑date

• Rand vs USD: +2.1% in August, +6.2% year‑to‑date

• MSCI World (in rand): +0.3% in August, +7.5% year‑to‑date

• Five‑year (USD): ALSI now ahead of MSCI World—a notable turnaround after years of lagging

What it might mean (big picture):

Market leadership rotates.

Concentration wins occasionally and hurts eventually.

A balanced mix aligned to YOUR GOALS across local and global assets can help portfolios participate wherever strength shows up—without betting the future on a single market or currency.

How investors can stay calm - A few Ideas:

• Keep your mix on purpose: If you choose to adjust investment allocations, do it for YOUR GOALS AND RISK BUDGET—not because last month was noisy or because your friend whose finances are a mess had a special idea for you to be like them.

• Rebalance, don’t react: If you decide to rebalance, doing it systematically according TO YOUR PLAN can turn strength into trimming and weakness into adding—rather than knee‑jerk changes.

• Scan the backdrop lightly: Markets are leaning toward a US rate cut in September with possible follow‑ups later in the year; locally, rail reforms are progressing. Useful to know to sound smart, but not a reason on its own to overhaul YOUR LONG-TERM PLAN.

Until next time, stay calm - and if life has changed, let’s talk.

This newsletter is intended for educational and marketing purposes only with examples intended to simplify potentially complex scenarios. For full disclaimer, please see https://www.grofinsolutions.com/succeed-with-hennie-newsletter-disclaimer/