It is always interesting to note the returns of the different asset classes at the end of the month. The graph below illustrates the cumulative returns of the last 12 months of the Bond, All Share Equity, Listed Property and Cash indices. It was a surprise to the market how the listed property market has performed, especially over the last quarter.
The graph below illustrates the cumulative returns of the Global Bond, World Equity, Emerging Equity Markets and the Listed Real Estate indices in US dollars. It was no surprise that the emerging market outperformed the developed market over this period. Structurally the emerging economies are supported by stronger fundamentals.
During the recent six months we noted again the flight to “safety assets” (driven mostly by the US bonds). This resulted in a strong positive return by the Global Bond Index over this period.
The graph below illustrates the cumulative returns of some of the equity managers we track.
There has been quite a variation in the returns by the managers. This can be mostly attributed to their allocation resources, financials, and industrials and also to large, mid, and small companies. The graph below illustrates the relative performances of the three main sectors.
Naturally it is important to understand where you came from but more important where you are going to. This is true not only in life but also in investing.
Kind regards,
Vincent Heys
vincent@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966