I recently attended a board meeting of an independent financial advisor, and the following graph was included in the board pack:

The Asisa average for SA Multi Asset High Equity funds over the last 12.5 years makes for interesting reading.

This particular category in the Collective Investment Scheme (CIS) space averaged 363.3, which means that if a R100 was invested on December 31, 2004, a client would see an amount of R363.30 returned to him on the June 30, 2017, that is net of costs, out- and underperformance of asset classes, as well as stock-picking contributions or reductions from performance, over this period. This is an annual yield of 10.87% per annum. Cash returned 240.50 (7.27% pa) index points, bonds 261.68 (8% pa) and property a staggering 851.20 (18.67% pa) over this 12.5 year period.

Before I go on, certain further details need to be explained and that refers to the classification by Asisa of the various multi-asset funds. Currently, there are three categories in the prudential fund (pension/retirement) space, meaning the funds invest in accordance with the regulations of the Pension Fund Act, in particular Regulation 28 of the Pension Fund Act. These categories are called the SA Multi Asset Low Equity, SA Multi Asset Medium Equity and SA Multi Asset High Equity, the difference being a maximum investment in equities of 40%, 60% and 75% respectively.

Read full news here: Money Web