May was marked by ongoing disruption in the Strait of Hormuz, elevated energy prices and growing divergence between the world's major economies.
While higher oil prices have placed pressure on consumers and businesses, the global economy has remained resilient, supported by healthy inventory levels and a less energy-intensive economy than in previous decades.
Despite geopolitical uncertainty and concerns around inflation, global equity markets delivered strong returns. US markets reached new highs on the back of robust corporate earnings, while South African equities were largely unchanged.
Across our portfolios, company fundamentals remain encouraging. Apple delivered strong growth driven by continued demand for the iPhone and expansion in its Services business, while Tencent continues to benefit from its digital ecosystem and growing AI capabilities. Locally, Richemont and Pepkor reported solid results, while Reunert remains well positioned to benefit from long-term infrastructure and defence spending trends.