ASSET ALLOCATION SUMMARY Financial markets were shaken by the US and Israeli military strikes on Iran and Iran’s subsequent closure of the Strait of Hormuz, a critical global ene increase in oil prices, together with concerns around potential supply disruptions and the impact on global inflation, has weighed on asset prices. Des suggests that investors are pricing in a contained conflict with an eventual resolution.

While sentiment has been impacted, there has been no broad-ba prices, indicating a degree of underlying resilience and confidence among investors in a stabilisation of conditions and an eventual sensible outcome

Figure 1 below highlights the US dollar return outlook for the various global asset classes. The bars in Figure 1 represent the reasonable range of poss indicating our estimated outcomes under various scenarios. Except for alternatives (positive), we are neutral on the various asset classes, given the ve uncertainty.

Figure 3 below outlines the rand return outlook for several domestic asset classes. The bar represents the reasonable range of possible outcomes, wit estimate of the outcome under various scenarios. From a domestic perspective, apart from cash (negative) and alternatives (positive), we are neutral high level of geopolitical uncertainty.