FANews
FANews
RELATED CATEGORIES
Category Investments

Overview of unit trust returns for the quarter ended 30 June 2009

09 July 2009 Plexus
Dr Prieur du Plessis, Plexus group executive chairman

Dr Prieur du Plessis, Plexus group executive chairman

The strong rebound in international equity prices, which began in March after a dismal start to the year, continued well into the second quarter of 2009. “The recovery has been astounding, to say the least,” says Dr Prieur du Plessis, Plexus group chairman.

The MSCI World Index, which sank to a low on 9 March, breaching its November 2008 low, has notched up more than 45% by 2 June. The MSCI Emerging Markets Index has risen by more than 68% since its low on 2 March.

Commodity prices also have also risen. The Commodities Research Bureau Index increased by 13,4% over the quarter and the Brent future price went up by 40,8%. “This indicates that global players believe the world economy is turning around and that investors are regaining their appetite for risk,” says Du Plessis.

Locally, the FTSE/JSE All Share Total Return Index increased by 8,7% over the quarter. The Financials Total Return Index delivered 12,3%, Industrials Total Return Index 14,0% and Resources Total Return Index 2,8%. The decline in the share prices of gold companies (the Gold Mining Index declined by 16,2% over the quarter), as well as the rand’s strength against the US dollar, diluted the performance of the Resources Index, according to Du Plessis.

The South African unit trust industry also showed a good improvement in performance over the period. Only five of the 29 unit trust categories rated were negative, according to the latest MoneyMate figures. “These were mostly foreign categories, as the rand strengthened to below R8 to the US dollar,” says Du Plessis. “During the first quarter, only five categories produced positive returns.”

The Domestic Equity Smaller Companies category emerged as the best over three months with 14,7%, followed by Domestic Equity Financials with 14,1%.

The worst categories over three months were Foreign Fixed Interest Varied Specialist and Foreign Fixed Interest Bond with -11,6% and -10,6% respectively.

Over one, three and five years Domestic Real Estate topped the charts with performances of 23,7%, 12,1% and 21,7% per annum respectively.

The best unit trust over three and six months was the Zshares Randplay Tracker Fund with 21,7% and 21,4% respectively. Over three months this fund was followed by the Old Mutual Value Fund and Discovery Equity Fund with 19,3% and 18,9% respectively. Over six months the second and third best funds were the Katzgold Flexible Fund and the RMB Resources Fund with 19,1% and 14,6% respectively.

The worst performing funds over three and six months were foreign fixed-interest funds. The worst return over three months was -19,0% from the Investment Solutions US Dollar Cash Feeder Fund, while the worst-performing fund over six months was the Prescient Global Growth Feeder Fund with -18,0%.

The top funds over a one-year period are all in the Domestic Real Estate category, with the STANLIB Property Income Fund taking the top honours with 33,8%. The worst fund over this period was the STANLIB Resources Fund with -53,1%.

Over three years the Investec Property Equity Fund performed best with 17,0% p.a. Over five years the best-performing fund was the Old Mutual Mining and Resources Fund with 27,5% per annum.

“With real estate and fixed-interest funds in the top spots over the one- and three-year periods, investors might be tempted to stick to these funds for the next few years,” says Du Plessis. However, he warns that the declining interest-rate cycle, which benefits these interest-rate sensitive asset classes, is close to a bottom and returns over the next few years will most likely be less competitive.

“If you are a long-term investor with a time horizon of more than five years, now is the time to invest in equity unit trusts,” says Du Plessis. “However, as the global economic recovery is still fragile and there may be further downside (or, at best, a sideways trend with volatility) in equity prices over the next few months, investors should adopt a phasing-in strategy.”

End

UNIT TRUST RETURNS: BEST AND WORST PERFORMERS

(periods ended 30 June 2009)

Three months

Zshares Randplay Tracker Fund

21.67%

Old Mutual Value Fund - A/

19.33%

Discovery Equity Fund

18.94%

PSG Alphen Growth Fund - A

17.72%

RMB Financial Services Fund - A

17.46%

Investment Solutions US Dollar Cash Feeder Fund

-18.99%

Absa US Dollar Income Fund

-18.13%

RMB US Dollar Income Fund

-18.01%

STANLIB US Dollar Cash FoF - A

-17.76%

Coris Capital International Bond Fund

-14.70%

Six months

Zshares Randplay Tracker Fund

21.38%

Katzgold Flexible Fund

19.08%

RMB Resources Fund - A

14.63%

Coronation Global Emerging Markets Flexible Fund

14.31%

PSG Alphen Growth Fund - A

12.85%

Prescient Global Growth Feeder Fund - A1

-18.04%

Sanlam International Bond FoF - A

-17.79%

Coris Capital International Bond Fund

-17.76%

Marriott Global Real Estate Fund - A

-17.64%

Marriott Global Income Fund - A

-17.33%

One year

STANLIB Property Income Fund - A

33.80%

Old Mutual SA Quoted Property Fund - A

31.25%

STANLIB Multi-Manager Property Fund - A

30.68%

Metropolitan Property Income Portfolio

28.91%

Prudential Enhanced SA Property Tracker Fund

28.17%

STANLIB Resources Fund - A

-53.14%

STANLIB Small Cap Fund - A

-49.97%

Fortress Reit Fund - A

-49.59%

Marriott Global Real Estate Fund - A

-47.01%

Investec Commodity Fund - A

-45.35%

Three years (per annum)

Investec Property Equity Fund - A

16.98%

Cadiz Equity Ladder Fund - A

16.63%

Katzgold Flexible Fund

15.33%

STANLIB Property Income Fund - A

14.86%

Prudential Enhanced SA Property Tracker Fund

14.66%

Marriott Global Real Estate Fund - A

-16.71%

STANLIB International Property Fund - A

-12.72%

STANLIB Small Cap Fund - A

-12.48%

Sanlam Global Equity Fund - A

-10.54%

RMB Global Fund

-9.87%

Five years (per annum)

Old Mutual Mining and Resources Fund - A/

27.50%

Nedgroup Investments Mining and Resources Fund - A

25.43%

Investec Property Equity Fund - A

25.40%

Kagiso Equity Alpha Fund

25.23%

Coronation Top 20 Fund

25.13%

Marriott Global Real Estate Fund - A

-0.80%

STANLIB Multi-Manager International FoF - A

0.12%

Nedgroup Investments International Equity Feeder Fund - A

0.13%

RMB Global Fund

0.42%

Sanlam Global Equity Fund - A

1.09%

Source: Money Mate Data

UNIT TRUST SECTORS: BEST AND WORST PERFORMERS

(periods ended 30 June 2009)

Three months

Domestic Equity Small Company Funds

14.67%

Domestic Equity Financial Funds

14.07%

Domestic Equity Value Funds

13.90%

Domestic Equity Growth Funds

13.84%

Domestic Equity Industrial Funds

13.76%

Foreign Fixed-interest Varied Specialist Funds

-11.61%

Foreign Fixed-interest Bond Funds

-10.55%

Foreign Asset Allocation Flexible Funds

-5.62%

Foreign Equity General Funds

-0.82%

Domestic Real Estate General Funds

-0.47%

One year

Domestic Real Estate General Funds

23.65%

Domestic Fixed-interest Bond Funds

17.20%

Domestic Fixed-interest Income Funds

13.11%

Domestic Fixed-interest Varied Specialist Funds

11.58%

Domestic Fixed-interest Money Market Funds

11.42%

Foreign Equity Varied Specialist Funds

-41.81%

World Wide Equity Varied Specialist Funds

-34.98%

World Wide Equity General Funds

-29.93%

Domestic Equity Small Company Funds

-23.90%

Domestic Equity Growth Funds

-18.93%

Three years (per annum)

Domestic Real Estate General Funds

12.05%

Domestic Fixed-interest Money Market Funds

10.10%

Domestic Fixed-interest Income Funds

9.41%

Domestic Fixed-interest Varied Specialist Funds

9.20%

Domestic Equity Industrial Funds

8.78%

Foreign Equity Varied Specialist Funds

-11.00%

Foreign Asset Allocation Flexible Funds

-0.46%

Domestic Equity Small Company Funds

1.41%

Domestic Equity Resources & Basic Industries Funds

3.18%

Domestic Equity Financial Funds

3.74%

Five years (per annum)

Domestic Real Estate General Funds

21.65%

Domestic Equity Resources & Basic Industries Funds

20.67%

Domestic Equity Industrial Funds

20.57%

Domestic Equity Value Funds

19.87%

Domestic Equity Large Cap Funds

19.50%

Foreign Equity Varied Specialist Funds

2.71%

Foreign Asset Allocation Flexible Funds

5.55%

World Wide Equity Technology Funds

7.83%

Domestic Fixed-interest Money Market Funds

8.83%

Domestic Fixed-interest Bond Funds

9.11%

Source: MoneyMate Data

Quick Polls

QUESTION

What is your one-liner for the 2024 National Budget speech?

ANSWER

Creepy failure to adjust income tax, medical tax credits
Overall happy, it should support economic growth
Overall unhappy, soaring public sector wages and broken SOEs suck..
There are too few taxpayers, too many grant recipients.
fanews magazine
FAnews February 2024 Get the latest issue of FAnews

This month's headlines

On the insurance industry’s radar in 2024
Insurers, risk managers unsure of AI’s judgement credentials
Is offshore the place to be in 2024?
Gap claims: erosion of medical benefits, soaring specialist fees
Investments and retirement… is conventional wisdom under threat?
Subscribe now