Identifying the best performing asset class, year-on-year can be challenging.
Inflation bites as a Wimpy cheese-burger cost R2,30 in 1983 . . . today, 33 years later R50,00 !
Over 2/3rds of investors’ returns can be attributed to long term asset class diversification.
| 2016 Q3 | 2015 | 2014 | 2013 | 2012 | 2011 |
| Bonds | Global Equity (R) | Property | Global Equity (R) | Global Equity (R) | Global Bond (R) |
| 15.0 | 32.8 | 26.6 | 56.4 | 21.7 | 29.8 |
| Property | Global Bond (R) | Global Equity (R) | Equity | Property | Global Equity (R) |
| 8.8 | 29.2 | 15.9 | 21.4 | 35.9 | 15.3 |
| CPI * | Property | Equity | Global Bond (R) | Equity | Property |
| 5.6 | 8.0 | 10.9 | 18.5 | 26.7 | 8.9 |
| Cash | Cash | Bonds | Property | Bonds | Bonds |
| 5.0 | 5.6 | 10.1 | 8.4 | 15.9 | 8.9 |
| Equity | Equity | Global Bond (R) | CPI | Global Bond (R) | CPI |
| 4.8 | 5.1 | 9.9 | 5.4 | 6.8 | 6.1 |
| Global Bond (R) | CPI | Cash | Cash | CPI | Cash |
| -1.4 | 5.2 | 5.3 | 4.7 | 5.7 | 5.3 |
| Global Equity (R) | Bonds | CPI | Bonds | Cash | Equity |
| -6.3 | -3.9 | 5.3 | 0.6 | 5.1 | 2.6 |
| 2010 | 2009 | 2008 | 2007 | 2006 |
| Property | Equity | Global Bond (R) | Property | Equity |
| 29.6 | 32.1 | 50.0 | 26.5 | 41.2 |
| Equity | Property | Bonds | Equity | Global Equity (R) |
| 19.0 | 14.1 | 17.0 | 19.2 | 33.5 |
| Bonds | Cash | CPI | Cash | Property |
| 15.0 | 8.4 | 11.7 | 9.1 | 28.4 |
| Cash | CPI | Cash | CPI | Global Bond (R) |
| 6.3 | 6.3 | 11.3 | 8.4 | 18.0 |
| CPI | Global Equity (R) | Property | Global Bond (R) | Cash |
| 3.5 | 3.5 | -4.5 | 7.5 | 7.1 |
| Global Equity (R) | Bonds | Global Equity (R) | Global Equity (R) | CPI |
| 0.4 | -1.0 | -19.8 | 5.7 | 5.8 |
| Global Bond (R) | Global Bond (R) | Equity | Bonds | Bonds |
| -5.5 | -18.3 | -23.2 | 4.2 | 5.5 |
| Equity | FTSE/JSE All Share TR ZAR | Cash | STeFI Call Deposit ZAR | * CPI 2016 Quarter End (QE) based on Morningstar’s calculated 1 month trailing |
| Property | FTSE/JSE SA Listed Property TR ZAR | Global Equity | MSCI World NR ($) index converted to ZAR/Rands (R) | figure (synthetic). Calendar year actuals. |
| Bonds | Beassa ALBI TR ZAR | Global Bonds | Citi WGBI ($) index converted to ZAR/Rands (R) | Above annual percentage returns (%). Source Morningstar. |
Momentum’s Outcome Based Investments is founded on
- Correlation between various asset classes, investment strategies and managers,
- Obtaining the highest level of certainty or probability of achieving a stated outcome,
- Manage capital risk throughout various economic cycles.