2021: A bumper year for local unit trusts

2022/01/11 11:48:00

After a string of lean years, performance rebounded for South African funds.

For the five years from the start of 2016 to the end of 2020, the average return from all South African domiciled unit trusts was just 4.8%. Last year, it jumped to 18.7%. Moneyweb Equities

After a string of lean years, performance rebounded for South African funds.

For the five years from the start of 2016 to the end of 2020, the average return from all South African domiciled unit trusts was just 4.Xolisa Dyeshana's birthday celebrations and endless beach days with Trevor's famous friends Anele Mdoda, Khaya Dlanga and Sizwe Dhlomo.Leshabela, who is on loan from Premier League side Leicester City, was a notable absentee for Shrewsbury Town as the club succumbed to a 4-1 defeat to Liverpool in the Third Round of the FA Cup on Sunday evening.SPORT By officially starting his new job this week, Richard Glover joined a lengthening line of South Africans poached by the international tennis community.

8%.Last year, it jumped to 18.Find friends like these.7%.Both players have since recovered, with Pierre featuring four around 17 minutes in the clash against Liverpool, but the encounter appeared to come too soon for the South African to make his return to action.While this headline figure is really only of academic interest, since it includes everything from money market to global equity funds, it does illustrate how much better returns in general were for local investors in 2021.Thank you, Mzansi.Last year, just 10 unit trusts out of a universe of 1 284 delivered a negative return, according to Morningstar.

At the same time, 545 funds – 42." Director Bille Woodruff commented on the post, saying:".Scroll through the gallery to see the 10 South African players with the most appearances in the Premier League Share.5% – returned more than 20%.By comparison, just 68 of 1 088 funds – 6% – gained more than 20% in 2019..That was the previous best year for local unit trusts since 2014.Read: Eight local unit trusts that caught our eye [last] year Local equity funds are back in favour Top-performing unit trusts in SA over the past decade The magnitude of the change in fortunes is perhaps best illustrated by the performance of funds in the Asisa (Association for Savings and Investment) South Africa multi-asset high equity category.

Over the previous five years, the average annualised return from these portfolios was just 4.4%, according to Morningstar.In 2021, however, they delivered an average growth of 20.4%.All but six of the 210 funds in this category were up more than 10% last year.

Strength on the JSE The significant difference has been in the returns available from the local stock market.Between 2016 and 2020, the average annualised return from unit trusts in the Asisa South Africa equity general category was just 3.5%.Over that period, the best year for these funds was in 2017 when they grew by an average of 13.2%.

In 2021, the average gain for local equity funds was more than double that, at 27.3%.There are now 34 local equity funds with annualised five-year returns of 10% or better.That is 28% of the unit trusts with track records this long.Conversely, at the end of last year, only four funds in the South Africa equity general category were showing annualised five-year returns of 10% or better.

Two of those were index trackers, tracking the FTSE/JSE Dividend Plus index.Even South African multi-asset income funds had a better year in 2021 than perhaps many were expecting.After average returns of 6% in 2020, funds in this category returned on average 6.6% last year.That is below the strong performance in years like 2019 and 2016, but is not significantly below the five-year average annualised return of 7.

3% for these portfolios.Notably, 19 of the 109 funds in this category – 17.4% – returned 8% or more last year.That is in line with this category’s five-year numbers.For that period, 13 of 69 funds – 18.

8% – show annualised returns of 8% or more.There were also continued strong gains for local bond funds, with unit trusts in the South Africa interest-bearing variable term category up 9% on average in 2021.This was slightly ahead of the returns from recent years.The average annualised five-year return for these portfolios has been 8.3%.

Patrick Cairns is South Africa Editor at Citywire, which provides insight and information for professional investors globally.This article was first published on Citywire South Africa here, and republished with permission.jQuery(document).on('click', 'a[href*="#to-comments"]', function (event) { event.preventDefault(); jQuery('html, body').

animate({ scrollTop: jQuery(jQuery.attr(this, 'href')).offset().top }, 500); }); jQuery(document).ready(function () { jQuery('img[class*="wp-image-"]').

bind('click', function () { jQuery(this.parentElement).lightBox({ imageLoading:"https://www.moneyweb.co.

za/wp-content/themes/moneyweb-domination/images/spinner_moneyweb.gif", imageBtnPrev:"https://www.moneyweb.co.za/wp-content/themes/moneyweb-domination/images/bg_direction_nav.

png", imageBtnNext:"https://www.moneyweb.co.za/wp-content/themes/moneyweb-domination/images/bg_direction_nav.png", }) }); function getSelectedText() { if (window.

getSelection) { var range=window.getSelection(); return range.toString() } else { if (document.selection.createRange) { var range=document.

selection.createRange(); return range.text } } } function createTweetLink(text, e) { var oldTweetLink=document.getElementById("tweetLink"); if (oldTweetLink !=null && typeof oldTweetLink !="undefined") { oldTweetLink.parentNode.

removeChild(oldTweetLink); } if (text==="") return undefined; var newTweetLink=document.createElement("a"); newTweetLink.href="https://twitter.com/intent/tweet?text=" + encodeURI(text) +"&url=https://www.moneyweb.

co.za/investing/unit-trusts/2021-a-bumper-year-for-local-unit-trusts/&via=Moneyweb"; newTweetLink.id="tweetLink"; newTweetLink.target="_blank"; newTweetLink.innerHTML=' Tweet'; var appendedTweetLink=document.

getElementById("article-body-content").appendChild(newTweetLink); var x=(e.clientX + 5) + 'px', y=(e.clientY + 5) + 'px'; jQuery(appendedTweetLink).css({ "top": y, "left": x }); return newTweetLink; } var textParagraph=document.

getElementById("textParagraph"); if (textParagraph) { textParagraph.addEventListener("mouseup", function (e) { tweetLink=createTweetLink(getSelectedText(), e); }, false); } });.

Read more:
Moneyweb News »
Loading news...
Failed to load news.

Minka Kelly about South African trip with Trevor Noah: 'The holiday of a lifetime' | ChannelMinka Kelly about South African trip with Trevor Noah: 'The holiday of a lifetime'

South African youngster Khanya Leshabela missed FA Cup clash with Liverpool after Covid-19 boutThe reason behind South African midfielder Khanya Leshabela's absence during Shrewsbury Town's FA Cup clash against Liverpool has seemingly been revealed. Read more ➡️ Investing with williamchurch09 has brought my family so much joy, I've received R25,500 from my little funds i invested and I'm grateful, i advice everyone to invest with 👇👇👇👇 williamchurch09 I am sure it has to do with racism You're indeed a great woman to the called, because of the good and excellent work you did for me, I'll be sharing the good news about you Robert_BAR1

Glover: Another South African lost to international tennis | CitypressFormer Tennis SA boss has joined the list of locals in key roles in international sport.

In distress as South Coast stays dry six years onIn distress as South Coast stays dry six years on - Visitors packed up and left after finding no water in towns along the coast as businesses battle I know we all probably might have heard about Bitcoin but don't know how it works, I tried it in a week ago by a man who recommended me to Dpurplewomanfx on Twitter she guides me through and i made a return of R10500 after a week of trading, connect with her Dpurplewomanfx I know we all probably must have heard about Bitcoin but don't know how it works, I tried it in a week ago by a man who recommended me to Leticia_thomas3 on Twitter He guides me through and i made a return of R15500 after a week of trading, connect with him You're indeed a great woman to the called, because of the good and excellent work you did for me, I'll be sharing the good news about you Robert_BAR1

South Korea's SsangYong sold for $255m to local consortiumA consortium led by South Korean electric carmaker Edison Motors Co has agreed to acquire debt-ridden SsangYong Motor Co Ltd for 305-billion won, SsangYong Motor said on Monday Investing with williamchurch09 has brought my family so much joy, I've received R25,500 from my little funds i invested and I'm grateful, i advice everyone to invest with 👇👇👇👇 williamchurch09 Couple of months ago I came across a recommendation about Arnoldnike93 wealth how he helped investors to earn lots of money with their investments. and I decided to give a trial with the little I have. Now my little has turned into something great which was not my expectation Hopefully I came successful thanks to a good friend and good manger. I never thought I could make money online me now, its real contact the financial freedom fighter marksust6

Shell's plan to search for oil along South Africa's Wild Coast hangs in the balanceOil giant Shell's plan to search for oil along South Africa's Wild Coast hangs in the balance. A High Court ruling in Makhanda in the Eastern Cape in Decembe... Investing with williamchurch09 has brought my family so much joy, I've received R25,500 from my little funds i invested and I'm grateful, i advice everyone to invest with 👇👇👇👇 williamchurch09 I know we all probably might have heard about Bitcoin but don't know how it works, I tried it in a week ago by a man who recommended me to Dpurplewomanfx on Twitter she guides me through and i made a return of R10500 after a week of trading, connect with her Dpurplewomanfx Must not hang but fall, crash, die