OVERVIEW OF UNIT TRUST RETURNS

Tuesday, 13 July 2010 09:22

By Dr Prieur Du Plessis, chairman of Plexus Asset Management and author of the Investment Postcards blog.

Global equity markets experienced their third worst quarter of the past eight years as investor sentiment was severely dented by the unravelling of the debt crisis in the European Union, which saw the US dollar gaining 10,44% against the euro. After retracing 50% of the fall from peak to bottom in 2008/2009 at the end of the first quarter, the MSCI World Index ended the quarter down 13,26% in US dollars.

Although they also succumbed to selling pressure, less pain was endured by emerging-market equities, with the MSCI Emerging Market Free Index losing 9,14% in US dollars. On a comparative basis the FTSE/JSE All Share Index returned -12.7% in US dollars and -8.17% in local currency, dividends and income reinvested, as the fall in the rand against the US dollar buffered the decline somewhat.

The fall in equity prices should be seen in context, though, as on a one-year basis the FTSE/JSE All Share Index returned 21,78% in domestic terms and 22,54% in US dollars, while the MSCI Emerging Markets Free Index returned 20,58% compared to the MSCI World Index’s 8,02%.

Global bonds benefited from the uncertainty created by the European debt crisis and returned 1,46% in US dollars, while the BESA All Bond Index managed 1,12%, income reinvested.

The analysis done in this survey excludes the Old Mutual Gold Fund A and the STANLIB Gold and Precious Metals Fund A from Resources and Basic Industries and places them in a separate sector, namely Gold and Precious Metals.

The best domestic categories for the three-months ended June 2010 Gold and Precious Metals and Foreign - Fixed Interest - Bond Gold with 8,24% and 3,28% respectively. This was due to a weakening in the rand accompanied by a strong increase in the gold price.

The worst sector over the period was Domestic - Equity - Resources and Basic Materials with a return of minus 10,87% as commodity prices experienced large declines.

The 12-month tables were topped by the Domestic - Equity - Financial category with 28,85%, followed by the Domestic - Equity - Smaller Companies category with 27,21%. The worst sector over the past year was the Foreign - Fixed Interest - Varied Specialist category with minus 5,79%.

The best category over three years was Domestic - Fixed Interest - Money Market with 9,81% per annum.

Domestic - Equity - Resources and Basic Industries still topped the five-year figures with 18,99% per annum.

The best funds over the three-month period were the Old Mutual Gold Fund A and the STANLIB Gold and Precious Metals Fund A with 9,11% and 7,37% respectively. The worst fund for the past quarter was the Sanlam Pan Europe Fund with -13,53%.

Over the last 12 months the best-performing unit trust was the RMB Small/Mid-Cap Fund A with 43,69%, followed by the Grindrod Global Property Income Fund with 42,60%. The worst-performing fund was the RMB Euro Income Fund A with minus 15,63%.

The best fund over three years was the Cadiz Equity Ladder Fund with 21,95% per annum, and the best fund over five years was the Old Mutual Mining and Resources Fund A with 21,95% per annum.

Best and worst sectors

1 month
Best	%
Foreign--Fixed Interest--Bond	1.28%
Domestic--Real Estate--General	0.95%
Domestic--Fixed Interest--Varied Specialist	0.65%
Domestic--Fixed Interest--Income	0.64%
Domestic--Fixed Interest--Money Market	0.56%
Worst
Worldwide--Equity--General	-3.32%
Worldwide--Equity--Varied Specialist	-3.48%
Domestic--Equity--Resources & Basic Industries	-3.72%
Domestic--Equity--Large Cap	-3.90%
Worldwide--Equity--Technology	-4.78%

3 months
Best	%
Gold and Precious Metals	8.24
Foreign--Fixed Interest--Bond	3.28
Domestic--Fixed Interest--Income	1.89
Domestic--Fixed Interest--Money Market	1.76
Domestic--Fixed Interest--Varied Specialist	1.61
Worst
Foreign--Equity--General	-7.76
Worldwide--Equity--Varied Specialist	-8.78
Domestic--Equity--Large Cap	-9.33
Worldwide--Equity--General	-10.25
Domestic--Equity--Resources & Basic Industries	-10.87

6 months
Best	%
Domestic--Real Estate--General	8.28
Domestic--Fixed Interest--Bond	5.69
Domestic--Equity--Smaller Companies	4.49
Domestic--Fixed Interest--Income	4.26
Domestic--Equity--Financial	4.26
Worst
Domestic--Equity--Large Cap	-5.62
Foreign--Equity--General	-6.62
Domestic--Equity--Resources & Basic Industries	-8.35
Worldwide--Equity--Varied Specialist	-8.79
Worldwide--Equity--General	-9.81

12 months
Best	%
Domestic--Equity--Financial	28.85
Domestic--Equity--Smaller Companies	27.21
Domestic--Equity--Value	25.07
Domestic--Real Estate--General	23.86
Domestic--Equity--Industrial	22.91
Worst
Domestic--Fixed Interest--Money Market	7.52
Worldwide--Equity--General	6.32
Foreign--Asset Allocation--Flexible	4.64
Foreign--Fixed Interest--Bond	3.41
Foreign--Fixed Interest--Varied Specialist	-5.79

Three years
Best	% per year
Domestic--Fixed Interest--Money Market	9.81
Domestic--Fixed Interest--Income	9.56
Domestic--Fixed Interest--Varied Specialist	8.79
Foreign--Fixed Interest--Bond	8.42
Domestic--Fixed Interest--Bond	8.32
Worst
Domestic--Equity--Growth	-3.58
Worldwide--Equity--General	-6.35
Domestic--Equity--Smaller Companies	-7.30
Foreign--Equity--General	-9.94
Foreign--Equity--Varied Specialist	-11.28

Five years
Best	% per year
Domestic--Equity--Resources & Basic Industries	18.99
Domestic--Real Estate--General	16.93
Domestic--Equity--Value	16.52
Domestic--Equity--Industrial	16.21
Domestic--Equity--Large Cap	15.67
Worst
Foreign--Fixed Interest--Bond	6.87
Foreign--Asset Allocation--Flexible	4.19
Foreign--Fixed Interest--Varied Specialist	3.92
Foreign--Equity--General	2.18
Foreign--Equity--Varied Specialist	1.76

Source: Profile Media

Best and worst funds

1 months
Best	%
Old Mutual Global Bond Feeder Fund A	3.49
SIM Global Best Ideas Feeder Fund A	2.94
PSG Tanzanite Flexible Fund	2.88
Foord International Feeder Fund	2.74
Old Mutual UK Money Market Feeder Fund A	2.73
Worst
Allan Gray-Orbis Global Equity Feeder Fund A	-4.72
STANLIB Resources Fund A	-5.01
STANLIB Global Science and Technology Fund A	-5.38
Cannon Core Companies Fund	-5.46
Old Mutual Global Technology Fund A	-6.69

3 months
Best	%
Old Mutual Gold Fund A	9.11
STANLIB Gold and Precious Metals Fund A	7.37
Old Mutual Global Bond Feeder Fund A	5.96
Investment Solutions Global Fixed Income Feeder Fund	4.85
STANLIB US Dollar Cash Fund of Funds A	4.25
Worst
Nedgroup Investments Mining & Resources Fund A	-10.90
Old Mutual Mining and Resources Fund A	-11.56
Xhilarator Multi-SA Flexible Fund of Funds A	-12.05
STANLIB Resources Fund A	-13.14
Sanlam Pan Europe Fund	-13.53

6 months
Best	%
Prudential Enhanced SA Property Tracker Fund A	10.66
RMB Small/Mid-Cap Fund A	10.23
Metropolitan Property Income Portfolio	10.09
STANLIB Multi-Manager Property Fund A	10.05
Absa Property Equity Fund	9.72
Worst
STANLIB Euro Currency Fund of Funds A	-11.53
STANLIB Resources Fund A	-12.11
RMB Euro Income Fund A	-12.24
Xhilarator Multi-SA Flexible Fund of Funds A	-12.64
Sanlam Pan Europe Fund	-17.60

12 months
Best	%
RMB Small/Mid-Cap Fund A	43.69
Grindrod Global Property Income Fund	42.60
36One Target Return Fund	37.98
PSG Tanzanite Flexible Fund	37.86
36One Flexible Opportunity Fund	37.77
Worst
Absa Pound Sterling Income Fund	-10.08
RMB Sterling Income Fund A	-11.01
Absa Euro Income Fund	-13.32
STANLIB Euro Currency Fund of Funds A	-13.71
RMB Euro Income Fund A	-15.63

Three years
Best	% per year
Cadiz Equity Ladder Fund	16.03
Coris Capital International Bond Feeder Fund A	13.56
Cadiz Absolute Yield Fund A	11.03
SIM Active Income Fund A1	10.73
Metropolitan Inflation-linked Bond Portfolio A	10.48
Worst
RMB Global Fund	-15.07
Sanlam Pan Europe Fund	-15.37
Fortress REIT Fund A	-16.15
Marriott International Real Estate Feeder Fund A	-16.27
STANLIB Small Cap Fund A	-28.02

Five years
Best	% per year
Old Mutual Mining and Resources Fund A	21.95
Nedgroup Investments Mining & Resources Fund A	20.60
Kagiso Equity Alpha Fund A	20.29
Investec Property Equity Fund A	20.18
STANLIB Property Income Fund A	20.00
Worst
RMB Global Fund	-0.92
Sanlam Pan Europe Fund	-0.93
Sanlam Global Equity Fund A	-1.19
STANLIB Small Cap Fund A	-1.66
Marriott International Real Estate Feeder Fund A	-3.76

Source: Profile Media

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Enquiries:

Dr Prieur Du Plessis, chairman of Plexus Asset Management and author of the Investment Postcards blog

Tel.: 021 970 2400

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Issued by:

Belinda Viret, Cadiz Street Communications

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About Plexus group

Founded in 1995, the Plexus group of companies is an independent investment house that specialises in the investment management of a range of unique investment solutions for both corporate and individual clients. Plexus has distinguished itself as a pioneer in the multi-manager industry and boasts a number of research firsts, such as the PlexCrown Fund Ratings (used as the basis for the annual Raging Bull Awards for the unit trust industry) and the Plexus Unit Trust Indices.

Its main subsidiaries are:

- Plexus Asset Management (domestic investment management services)

- Plexus Global Asset Management (international investment management services)

- Plexus Fund Solutions (investment consulting services)

- Plexus Fundamental Funds (fundamental indexing)

- Plexus Mauldin Alternative Investments (hedge funds)

For more information, visit www.plexus.co.za.