Passive investors with exposure to index funds will not be happy with 2016. But those who stock-picked the right sectors are smiling all the way to the bank. The JSE all share ended 2016 flat (-0.08%), meaning passive investors made no money, with real returns battered by an inflation rate of more than 6%. With hindsight, the place to be in 2016 was in resources or banks, or in a specialised sectoral unit trust. Investors following an active strategy could have done even worse, as the rand-hedge dominated industrial index ended the year 8.59% lower. Stalwarts such as Naspers lost 5%. Richemont dropped 18.69% and British American Tobacco was 10.83% lower. John Biccard’s much-maligned Investec Value Fund trumped them all with a 61% annual return. Investors who could stomach the fund’s 12% retreat in 2015 have been vindicated as Biccard’s faith in miners such as Implats and AngloGold Ashanti paid off. The banking index rose 26.97% in 2016, but financials ended flat. Specialised unit tr...
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