Not a single fund registered for sale in South Africa has outperformed the US market over the past 10 years. This includes all local portfolios as well as global funds available to South African investors.
According to Morningstar data, the top-performing portfolio available to South Africans since the start of 2012 was the GinsGlobal US Equity Index fund. It has delivered a 10-year annualised return of 22.1% in rand terms.
This fund tracks the MSCI USA index, and its performance illustrates that tracking the US market has been a winning strategy for a significant period of time.
Extending the review period to 15 years, however, changes the picture quite materially.
While the GinsGlobal US Equity Index fund has once again been the top performer, only two other funds in the top 10 are global equity portfolios – the Old Mutual Global Equity fund and the Allan Gray-Orbis Global Equity feeder fund.
The top-performing South African portfolio over this period has been the Aylett Equity Prescient fund. The R4.3 billion portfolio managed by Walter Aylett is up an annualised 13.9% over the past decade-and-a-half.
The other notable top performers focused on local assets are the SIM Top Choice Equity fund managed by Citywire A-rated Cromwell Mashengete and Andrew Kingston, the Centaur BCI Flexible fund managed by Roger Williams, the BlueAlpha BCI All Seasons fund managed by Gary Quinn, and the 36One BCI Flexible Opportunity fund managed by Citywire + rated Cy Jacobs.