Plexcrown Survey

01 February 2007 Plexcrown

Overview of unit trust returns for the quarter ended 31 December 2006
Domestic and rand-denominated foreign collective investment schemes
(excluding varied and specialist mandates and money-market funds)
The fourth quarter of 2006 was characterised by significant reversals of the previous quarters fortunes. Domestic equities ended the year on an extremely positive note as the soft landing scenario in the US unfolded, pushing global equity markets to new highs. Domestic economic sensitive equity sectors that were dogged by interest rate hikes earlier during the year were the star performers during the quarter on the realisation by investors that domestic lending rates may be approaching a cyclical peak while corporate profits continue to grow at a healthy pace.

The Domestic - Equity - Smaller Companies subcategory returned a remarkable 19,9% for the quarter and was closely followed by the Domestic - Equity - Industrial and Domestic - Equity - Financial subcategories with returns of 19,0% and 18,6% respectively.

Despite positive returns in hard-currency terms the foreign subcategories suffered as a result of a stronger rand and were therefore the worst-performing CIS sectors during the quarter as relative gains of previous quarters were reversed. The Foreign - Fixed Interest - Bond category produced a negative 7,5% return for the quarter and was followed by Foreign - Asset Allocation - Flexible with -3,9% and Foreign - Equity - General with -2,0%.

The stalwart subcategory for most of this year, Domestic - Equity - Resources and Basic Industries, only managed to eke out a relatively "poor" 9,0% return for the quarter as the stronger rand and concerns regarding the outlook for commodities took their toll on the underlying equity prices.

Click here to read more - PDF file (122KB).

Quick Polls


Each year ordinary consumers and their financial and wealth advisers flock to dozens of asset manager ‘outlook’ presentations to find out about economic and investment trends, and the next ‘hot’ company. What do you want asset managers to share during these events?


Asset allocation strategies
Big picture investment themes and how to position portfolios for them
Investment methodologies and historic fund yields
Share tips by the score
fanews magazine
FAnews June 2022 Get the latest issue of FAnews

This month's headlines

A free smoothie does not make a loyal customer
Consequential loss policy court cases
Everything you need to know about death, disability and severe illness cover post-emigration
Are advisers doing all they can for clients’ portfolios?
Financial advisers need help - navigating the complex ESG fund environment
Subscribe now