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Welcome to the Sharenet Daily Equity Report Issue: 12 January 2011 20:00 |
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Chart of local market performance
Yesterday I briefly looked at investment performance across the various global assets in 2010. Today I have focused on returns in South Africa across the various asset classes available for general investment.
The chart below, courtesy of SIM, looks at discrete annual returns in each calendar year across various asset classes.
Asset Class returns to end of December 2010
Source: www.sim.sanlam.com
These have been colour coded to provide a guide as to what were the best and worst performers in each year over the past 11 years.
There are a few points noteworthy from this illustration of returns:
• There is not one asset class that is constantly at the top, despite listed property having had a very good run over the last 11 years.
• Likewise there is not one asset class that is consistently at the bottom of the log; however inflation and bonds have tended to dominate this position.
• Twice SA Equities were the worst performer in a calendar year, but they have also been top performer in 4 of the 11 years.
• Except for a couple of years like 2001 and 2005, foreign equity (as measured in rands) has been a relatively poor performer. It has been particularly weak over the last 4 calendar years. Perhaps time for a rebound?
Because of the variation of returns across the asset classes, a balanced fund which in this case comprises 65% local equities, 10% bonds, 10% money market, 7,5% global equity and 7,5% global bonds has been the most consistent performer, tending to sit near the middle of the range of performances.
In most of the years a balanced fund has outperformed inflation and because of the diversity of holdings it will have a lower volatility than pure equities.
For this reason, a local balanced fund is typically one of the better options for most investors, be they saving for the longer term, or looking at options for their retirement funding.
Kind regards
Ian de Lange
info@seedinvetsments.co.za
www.seedinvestments.co.za
021 9144 966
![[IMAGE]](image.php@width=300&cropratio=2%253A1&image=%252Fnewsimages%252F2011-01-12T154215Z_01_AJOE70B17MG00_RTROPTP_3_OZABS-SAFRICA-STOCKS-20110112.JPG "Man walks past the Johannesburg stock exchange offices in Sandton") South African blue-chip stocks booked their highest close in 2-1/2 years on Wednesday, helped by bullish sentiment about the outlook for resource-related companies. Full story |
The new chief executives at four
of Britain's top banks face a daunting list of challenges topped
by tougher regulations spawned by the global financial crisis. Full story The World Food Programme (WFP) said on Wednesday its food purchases from Uganda rose 29.6 percent in 2010 from the previous year boosted by an increase in donations to the U.N. agency. Full story Korea Southern Power Co Ltd (KOSPO)
has received 2.5 million tonnes of coal offers for its tender
closed on Wednesday to buy 130,000 tonnes for delivery between
March and May, a company source said. Full story |
![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-04T115908Z_01_AJOE7030XAM00_RTROPTP_3_OZABS-SAFRICA-COAL-EXPORTS-20110104.JPG "Labourer searches for usable coal at a cinder dumpsite in Changzhi") 16h32 South African logistics group Transnet said on Wednesday heavy rains had disrupted its freight rail operations, affecting coal and maize exports.. . . Full story | ![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-12T093807Z_01_AJOE70B0QRL00_RTROPTP_3_OZABS-SAFRICA-CONFIDENCE-20110112.JPG "Businessmen chat in front of a Standard Bank logo in Sandton outside Johannesburg") 12h09 Business confidence in South Africa improved slightly in December but remains vulnerable due to shaky investment, household spending and employment, a. . . Full story | ![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-12T100505Z_01_AJOE70B0S0I00_RTROPTP_3_OZABS-LONMIN-20110112.JPG "Mine workers emerge from the pithead at the Harmony Gold mine in Carletonville") 11h52 The South Africa National Union of Mineworkers (NUN) said on Wednesday it had agreed on an 8 percent pay rise deal. . . Full story | ![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-12T075952Z_01_AJOE70B0M7U00_RTROPTP_3_OZABS-HEINEKEN-NIGERIA-20110112.JPG "Bottles of Heineken beer are displayed before a news conference in London") 09h59 Heineken NV, the world's third-largest brewer, acquired controlling interests in five breweries in Nigeria, expanding its capacity by nearly a third. . . Full story |
Trading Statistics
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 12/01/2011 | 222 | 127 | 82 | 431 | 259,089,146 | R11,531,545,870 | 97566 | 1974240 |
| 11/01/2011 | 206 | 132 | 74 | 412 | 329,874,720 | R18,027,283,427 | 120883 | 2044810 |
| 10/01/2011 | 110 | 186 | 92 | 388 | 228,787,082 | R10,998,111,154 | 90351 | 2103815 |
| 07/01/2011 | 118 | 199 | 81 | 398 | 211,300,472 | R8,755,916,949 | 85082 | 2277413 |
| 06/01/2011 | 181 | 113 | 78 | 372 | 162,860,769 | R8,759,627,042 | 76609 | 2067560 |
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