Asset Class Returns | Q3 2016

glassIdentifying the best performing asset class, year-on-year can be challenging.

 

chickenInflation bites as a Wimpy cheese-burger cost R2,30 in 1983 . . . today, 33 years later R50,00 !

 

scaleOver 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.

10-Year-Returns

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.

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