The history of returns shows that financial advisers and investment managers who suggested an increase in your exposure to cash and bonds at the expense of local equities roughly five years ago will have done well for you, their investors. Local cash investments have returned on average 6.9% a year, local bonds 7.7% a year and local equities 5.8% a year over the past five years. Those who suggested increasing global investments over local ones also look like heroes, as global equities have returned on average 12% a year over the past five years. For most South Africans, the bulk of their savings, however, are in retirement funds, and their offshore exposure is limited to 30% of the fund. Therefore, participation in good global equity returns is muted. This is in line with prudential guidelines in regulation 28 of the Pension Funds Act that ensure that your retirement investments are diversified across the asset classes. Despite their ability to tilt the fund towards better-performin...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now