03. Can South African investors continue to count on commodities?

Investors in commodity miners and producers have found themselves in one of the better places in the market since the pandemic, owing partly to a lift in demand as countries embarked on stimulus programmes and supply-side constraints keeping a lid on production. Local mining shares were one of the key driving forces behind the FTSE/JSE All Share Index hitting a new high earlier this year. As local investors, we think we are pretty well-versed in analysing and valuing commodity producers, but when you go to a global asset allocation level, there is not nearly the same amount of interest, outside of hedge funds and some niche managers. Allan Gray portfolio managers Sean Munsie and Rory Kutisker-Jacobson and investment analyst Jithen Pillay discuss the cyclical nature of commodities and delve into the various macro issues that are currently impacting commodity prices. They also explore the energy transition and share their views on some of the new opportunities in the sector.