Only one out of three retirement fund portfolio managers in South Africa were able to outperform inflation over the last year ending March 31, 2001.
Commenting on ABSA’s latest quarterly survey on the performance of fund managers in the year to March, ABSA Consultants and Actuaries' executive director Coenraad de Jager said: “When portfolios with a conservative mandate - portfolios mainly investing in fixed interest securities - are excluded, the ratio drops to one in four. ABSA's survey is based on the performance of 70 portfolios, representing funds in excess of R100bn.
Allan Gray Limited was rated as the number one performer over one, three, five and ten-year periods. The fund manager turned in a 36.4% investment yield over a one-year period to the end of March 2001. Allan Gray has R7.8bn worth of assets under management.
Second place went to Foord & Meintjies with a return of 23% over a one-year period. The portfolio has R265m worth of assets under management. Foord & Meintjies ranked best performer of the October 2000 survey.
In the key return-over-three-years category, Allan Gray also came out top with a 34.5% return. Runner-up was Foord & Meintjies, which produced a 31.7% return.
Allan Gray also showed the best investment yield achieved in the longer five and ten-year investment periods. They returned 22% over five years and 21.9% over ten years.
By Janet Du Chenne
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.