Prescient favors South African bonds as real yields exceed 4%

• Prescient Management favors South African cash and bonds entering the fourth quarter of 2026, with developed and emerging market equities underweight.
• South African 10-year real yields exceed 4%; real cash rates stand above 2.5%.
• US Treasury repricing reflects higher expected real rates, not unanchored inflation expectations; short-dated bonds remain favored over the neutral long end.
• Elevated valuations underpin negative global equity signals; South African equities retain a moderately positive rating on valuation discounts and currency support.
• Equity exposure remains capitalization-weighted without caps; excess returns are sought through fixed income rather than reducing index concentration.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Prescient Management Company Ltd published the original content used to generate this news brief on October 28, 2026, and is solely responsible for the information contained therein.