Here are 2017’s top unit trusts
The JSE’s strong performance in the third and fourth quarters last year meant the majority of local unit trusts delivered inflation-beating returns for the 12 months to December 31.
What is interesting about the list of last year’s top performers, however, is how varied it is.
According to Morningstar, the top 20 includes smart beta products, index funds, resource funds, property funds and unit trusts with emerging market and African exposure. Quality strategies, momentum strategies and value strategies also appear in the list.
Significantly, the Stanlib Enhanced Yield Abil Retention Fund isn’t last year’s top performer because of a large holding in Naspers. It’s not even one of this smart beta fund’s top 10 holdings.
The unit trust’s largest exposures are to Mr Price, Bidvest, Capitec, Tiger Brands and Standard Bank. It also benefited from a fairly large position in Kumba Iron Ore.
The Satrix Momentum Index Fund, however, ended the year heavily weighted towards Naspers. Its November fact sheet shows it had nearly 27% of its portfolio in the stock.
The Sanlam India Opportunities Feeder Fund had another good year. The Indian market has delivered exceptional returns since late 2013, and this fund has benefited from that.
The Absa Property Equity Fund was the top real estate fund last year.
In fact, it’s the top performing unit trust in its category over one, three, five and ten years.
The much-younger Metope MET Property Fund was only launched at the start of 2015 by specialist boutique manager Metope Investment Managers, and has done extremely well.
The portfolios of both of these funds are distinctly different to the local property index and therefore investors are benefiting from genuine active management.
There are a number of funds on the list with exposure to emerging markets, and Africa. The Aluwani Africa Equity Fund is particularly interesting as it had a very poor run in 2016, falling over 30%. Note: Past performance isn’t an indicator of future performance, particularly over a short period.