Most investors have been disappointed with returns over the past three years. For example, multi-asset portfolios have struggled, with the average SA Multi-Asset High Equity unit trust posting 3.4% per annum over the three years ended March 2018.
Karl Leinberger, Chief Investment Officer at Coronation Fund Managers, shows us why returns are anything but linear and hence long term investing is the
Question:
My friend has told me about some hot funds that have been performing really well recently, with double-digit returns. Isn’t it a good idea to include these funds in my portfolio?
The recent significant market events related to Steinhoff International Holdings and its subsidiaries have been widely reported in the media and we would like to share our views as well as the views of the various asset managers who manage your portfolios.
If the cap fits, wear it – actions come with consequences. Even though President Zuma’s cabinet reshuffle last week effectively made rating downgrades far more of a certainty in our minds, it still came as a surprise when S&P downgraded South Africa’s foreign credit rating by one notch last night to “junk status” (BB+), ahead of their scheduled June review.
A lot has been said over the past year in the media regarding the possibility of whether South Africa (SA) will be downgraded to “junk status” by the respective rating agencies, namely Moody’s, Standard and Poor’s (S&P) and Fitch.
One of the most destructive behavioural traits of investors is to constantly make investment decisions by looking at recent past performance….
While you were away, much has transpired in our economy, headlined by the shock removal of Minister Nene by Jacob Zuma. The surprise announcement was not received well by markets, with an estimated R500 Billion in value, being wiped off since the debacle.
It looks like it may be a hat trick, but in a negative sense. By JP Landman – Political Analyst
This is then anything but the time to sell and is instead a period of increased opportunity…..
