The game is Bonds, SA Bonds
Bond buyers have bagged some decent returns over the past five years, and some analysts say they’re still a must for investor portfolios
Bagging returns equal to double the rate of inflation is usually the domain of risky assets such as equities or even real estate. However, SA bonds (considered a safe-haven asset class for local investors) managed this feat over the past five years. Will the next five years be as good?
The FTSE/JSE all bond index (Albi) managed an annualised return of 8.9% from 2016, with inflation averaging 4.3% a year for the same period. In the same time frame, the FTSE/JSE all share index delivered an annualised return of 11.4% to the end of March 2022. FundsData, which tracks local unit trusts, shows that 35 funds with large bond holdings surveyed over the past five years returned a compounded average 44%, or 7.3% annualised...