Overview of unit trust returns for the quarter ended
30 June 2009
The strong rebound in international equity prices, which began in March after a dismal start to the year, continued well into the second quarter. The recovery has been astounding, to say the least.
The MSCI World Index reached a low on 9 March 2009 (breaching its November 2008 low) and by 2 June 2009 had notched up a rally of over 45%! The MSCI Emerging Markets Index (which did not breach its 2008 low) reached a low on 2 March 2009 and by 1 June 2009 had recovered by more than 68%!
Commodity prices also increased, with the Commodities Research Bureau (CRB) Index increasing by 13,41% over the quarter and the Brent future price increasing by 40,77%. These increases bear testimony to the fact that global players believe in a turnaround in the global economy and that investors are regaining their appetite for risk.
The FTSE/JSE All Share Total Return Index increased by 8,65% over the quarter with the Financials Total Return Index delivering 12,25%, the Industrials Total Return Index 14,00% and the Resources Total Return Index 2,77%. The performance of the Resources Index was diluted by a decline in the share prices of the gold companies (the Gold Mining Index declined by 16,17% over the quarter), as well as the rand’s strength against the US dollar.
The South African unit trust industry also showed a good improvement in performance over the period. According to the latest performance figures of Money Mate only five of the 29 categories rated were negative over the second quarter of 2009. These were mostly foreign categories as the rand strengthened to below R8 to the US dollar. The best category over three months was the Domestic Equity Smaller Companies category with 14,67%, followed by the Domestic Equity Financials category with 14,07%.
The worst categories over three months were the Foreign Fixed Interest Varied Specialist and Foreign Fixed Interest Bond categories with -11,61% and -10,55% respectively. Over one, three and five years Domestic Real Estate topped the charts with performances of 23,65%, 12,05% and 21,65% per annum respectively.
The best unit trust over three and six months was the Zshares Randplay Tracker Fund with 21,67% and 21,38% respectively. Over three months this Fund was followed by the Old Mutual Value Fund and Discovery Equity Fund with 19,33% and 18,94% respectively. Over six months the second and third best funds were the Katzgold Flexible Fund and the RMB Resources Fund with 19,08% and 14,63% respectively.
The worst funds over three and six months were all foreign fixed-interest funds. The worst fund over three months was the Investment Solutions US Dollar Cash Feeder Fund with -18,99%, and over six months the worst-performing fund was the Prescient Global Growth Feeder Fund with -18,04%.
The top funds over a one-year period all come from the Domestic Real Estate category, with STANLIB Property Income Fund taking the top honours with 33,80%. The worst fund over this period was the STANLIB Resources Fund with -53,14%.
Over three years Investec Property Equity Fund performed best with 16,98% p.a. Over five years the best-performing fund was the Old Mutual Mining and Resources Fund with 27,50% per annum.
Unit trust returns: Best and worst performers (periods ended 30 June 2009)
Note: Where a fund has more than one class, the A fund’s returns are used. In the absence of an A class, the R class is used. If a fund has no A or R classes and only, for instance, a B1 class, the latter’s returns are used.
Sector performance 3 months ended 30 June 2009
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