2021: A bumper year for local unit trusts

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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

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%. 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.

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.

 

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