Green shoots among the weeds

Warwick, Managing Director, Marc Wiese, sees some green shoots among the weeds. Warwick Wealth Matters -June 2025

Dear Clients and Partners,

A warm welcome to the June 2025 edition of Warwick Wealth Matters. As always, it’s a privilege to connect with you and provide a brief update on markets, economic developments, and our continued progress at Warwick Wealth.

Global markets have remained volatile over the past few months, with familiar themes continuing to drive uncertainty – from the ongoing trade wars to heightened geopolitical tension and the capricious Donald Trump presidency – all impacting the global stage. South Africa, too, has been in the spotlight, most notably with President Cyril Ramaphosa’s recent visit to the White House, a significant moment that reflects South Africa’s role in global affairs.

Despite this volatile backdrop, May was mostly a positive month for investors. We’ve seen encouraging gains across South African equities, bonds, and global markets alike. As a result, many client portfolios have grown in value, which is always welcome news. Alongside our investment partners at Orion Investment Managers, we at Warwick Wealth have remained disciplined in our approach — actively selecting quality shares and building well-diversified portfolios that reduce risk while seeking long-term value.

A highlight on the economic front has been the stability in inflation, with the Consumer Price Index remaining around the 3% mark — the lower end of the South African Reserve Bank’s target range. This has led to a modest but meaningful 0.25% interest rate cut, offering relief to South African consumers and potentially paving the way for another reduction to stimulate economic growth and job creation.

This notwithstanding, the challenges in the labour market cannot be ignored. South Africa’s unemployment rate rose to 32.9% in Q1 of 2025, with youth unemployment reaching a staggering 46.1%. With 4.8 million young people actively seeking work, this remains a deep concern — and one that reinforces the importance of our balanced asset allocation strategy between local and global markets.

On a more positive note, I’m thrilled to announce the continued growth of the Warwick Wealth family. Please join me in welcoming Christiaan and Cornel Bekker of Karoo Financial Advisors, a trusted name in the region for over 40 years, as well as Edward Dalton, a seasoned financial advisor with more than 30 years of experience in the Klein Karoo. We are honoured to have such respected professionals joining our team, further strengthening our presence and client offering in these key areas.

As always, we remain committed to managing your wealth with care, insight, and a long-term perspective. If you have any questions about your portfolio or need support, please don’t hesitate to reach out to your dedicated advisor or contact us directly. We are here for you.