Dear
Client
5 April
2017
Our early estimate growth
nett of all fees for Kanaan Hedge FoF for March 2017, is
0.64%.
The Rand weakened late on
Monday immediately after rating agencies SMP Global ratings cut South Africa’s
credit rating to sub-investment grade, or junk status to BB+ from BBB-. The
currency reached 13.74 / USD as the news broke, 2.85% lower on the
day.
Despite the shock on
Thursday night, the Rand has done well to pull back from 13.60 /USD to trade at
13.50 / USD on Monday.
Analysts say markets are
looking for more clarity on ANC policy and leadership issues. If Zuma survive
the onslaught, it would probably be seen as a triumph for state capture, but if
he is ousted it would be interpreted as a victory for the sanctity of the
constitution.
I think the managers of
the underlying hedge funds of Kanaan Hedge FoF will follow an approach of wait
and see, where they do have already a lot of hedging in place against the
devaluation of the Rand.
Friendly
greetings
Andre Delport
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