Finweek English Edition - - INVESTMENT -

The Stan­lib Bond Fund has com­fort­ably beaten its peer group me­dian, and its bench­mark, the All Bond In­dex (Albi), over threeto 10-year pe­ri­ods to end Jan­uary 2014. This stel­lar per­for­mance saw the fund recog­nised with an­other Rag­ing Bull award for best South African in­ter­est-bear­ing vari­able term fund.

What’s clear from the per­for­mance ta­ble is the short-term pain that bond funds are en­dur­ing as a re­sult of fall­ing bond prices. As yields in­crease, cap­i­tal val­ues de­cline. Over 10 years the fund has de­liv­ered a re­turn of 9.4%, which equates to 3.4% above in­fla­tion, af­ter fees. The yield on the fund has av­er­aged 7.26% for the last 12 months, which is barely 1% above in­fla­tion.

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