South African retirement funds' performance has improved dramatically in the three months ending in June 2001, according to ABSA Consultants & Actuaries.
In a survey of 71 portfolios, ABSA found that all investment managers outperformed inflation by a minimum of 4% over a 12 month period ending June 2001. The best performing fund was Allan Gray, which recorded a return of 49.5%. The worst performer was Marriot Asset Management, which managed to return 10.3%.
Francois Viljoen, manager of asset consulting at ABSA, explained that during the first three months of 2001 ending in March, global markets were at their weakest. This was followed by an alarming turnaround in April and May where global markets and the bond market improved substantially. Inflation was also lower than expected.
Viljoen noted that in the three months ending June 2001, local equities rose 14%, the bond index rose 9.4%, the money market 2.6% and international shares 2.7%.
For the 12 months ending in June 2001, the return on local equities was 16.1%, and 31.1% on bonds. The money market returned 10.9%, and international markets returned just 1.9%.
BoE’s Investors Fund was found to be the most consistent performer. The fund has, over five years, earned an average 17.3% a year, placing it fourth in the balanced category for the five years ending June 30, 2001.
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