We look at the portfolios available to local investors that have outperformed over 10, 15 and 20 years.

It would have been a brave investor who predicted 10 years ago that the best way for a South African investor to keep pace with global equity markets would have been to invest in local mining stocks. Yet that is exactly how the past decade has turned out.

Of the 15 top-performing funds over the past 10 years, 10 are global equity funds, four are South African resources funds, and one is a local equity portfolio.

The performance of the four commodity funds is eye-catching because they hold a little more than R3bn in assets between them. Yet, as a category, they have been the closest local funds have come to delivering returns on par with global equities.

The average annual return for the Asisa South Africa equity resources category over the past 10 years has been 13%. For the Asisa global equity general category it is 13.5%. Local equity funds, by contrast, have returned an average of 8%.

It is also notable that only a single fund registered for sale in South Africa has outperformed the US market over this period. That is the Old Mutual Global Equity fund, managed by Amadeo Alentorn at Jupiter Asset Management. As the top performer over the past decade, it has given investors an annualised return of 18%, according to Morningstar.

The second-best performing portfolio over this period is the GinsGlobal US Equity Index fund, which is up 17.8% per year.

The only local general equity fund on the list of top performers is the Fairtree Equity Prescient fund managed by Citywire AA-rated Cor Booysen and A-rated Stephen Brown. It is up 16.1% per annum over the decade.

Top Performing Funds

Source: Morningstar. Data to 31 December 2022

When extending the review period to 15 years, the composition of the top performers is significantly different.

The best performer is the Aylett Equity Prescient fund. The R4.7bn portfolio managed by Citywire A-rated Walter Aylett has returned an annualised 13.4% over the past decade and a half. That places it ahead of the gain made by the US market over this period.

Once again, the second-best performer is the GinsGlobal US Equity Index fund. It has returned an annualised 12.8%.

Notably, several South African-focused funds make this longer-term list. The Centaur BCI Flexible fund, managed by Roger Williams, and the SIM Top Choice Equity fund managed by Citywire + rated Cromwell Mashengete and Andrew Kingston are both in the top five.

Once again there is a place for the resource funds, with the Nedgroup Investments Mining & Resource fund, managed by M&G Investments, rounding out the top 10.

Top Performing Funds in SA

Source: Morningstar. Data to 31 December 2022

When extending the review period to 15 years, the composition of the top performers is significantly different.

The best performer is the Aylett Equity Prescient fund. The R4.7bn portfolio managed by Citywire A-rated Walter Aylett has returned an annualised 13.4% over the past decade and a half. That places it ahead of the gain made by the US market over this period.

Once again, the second-best performer is the GinsGlobal US Equity Index fund. It has returned an annualised 12.8%.

Notably, several South African-focused funds make this longer-term list. The Centaur BCI Flexible fund, managed by Roger Williams, and the SIM Top Choice Equity fund managed by Citywire + rated Cromwell Mashengete and Andrew Kingston are both in the top five.

Once again there is a place for the resource funds, with the Nedgroup Investments Mining & Resource fund, managed by M&G Investments, rounding out the top 10.

The full article is available at City Wire

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