Dear readers,

Welcome to this first OIM Optimum of 2026. We wish all our clients a highly successful year of wealth growth.

While we have already experienced extraordinary geopolitical buffeting, the investment outlook for 2026 is broadly optimistic, with expectations of continued global economic growth, easing interest rates, and strong corporate earnings driven significantly by artificial intelligence (AI). However, investors are advised to seek diversification and be prepared for potential volatility. 

Key Investment Themes

• Artificial Intelligence (AI): The AI supercycle remains a high-conviction theme, with over $700 billion expected to be spent on AI infrastructure in 2026. While the tech sector is expected to lead in earnings growth, opportunities are broadening to other sectors adopting AI.
• Diversification: Given high concentration in a few mega-cap US tech stocks and ongoing geopolitical risks, investors are focusing on diversification.

Potential Risks

• Market Volatility: The high valuations in the tech sector and geopolitical tensions could lead to increased market volatility.
• AI Profitability: While AI spending is high, it is unclear how much revenue all companies will eventually generate from these investments, leading to potential "winners and losers" within the theme.

Significantly for South Africa, gold, platinum and related commodities continue to attract investor attention and we closely monitor the progress of the Government of National Unity in this year of local government elections.

As you will glean from reading this edition of the Optimum, with its extensive range of fund offerings and drawing on some of the world's leading research partners, OIM is well positioned to meet the investment needs of our extensive and diverse client base.

Enjoy the read and I look forward to speaking to you in Q2!

Sincerely,