First things first

What we’re about
Afena Capital is an independent investment management firm that was established in 2005 and currently operates in South Africa and Botswana. We are a multi-disciplinary firm with a focus on equity, fixed income and multi-asset class investment strategies. The clients that we serve include institutional clients such as retirement funds, medical aid funds and insurers, as well as individual private clients. We are a majority black owned..

Afena Insights 24th Edition Mar 2016

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Last quarter we spoke about the US Federal Reserve’s (the Fed) decision to raise policy rates; how this was causing the United States’ monetary policy to diverge from its key trading partners and of how it was resulting in significant US Dollar strength. This in turn was unwinding the carry trade, undermining global dollar liquidity and causing both emerging markets and dollar denominated commodity prices to decline in value. We therefore saw the continuation of the dollar strength as a key question for the South African market and economy (given their reliance on dollar liquidity and commodities).