Old Mutual has published a new report focusing on asset class returns in South Africa over the last 10 years.
The report – which is based on monthly updated data – reflects average returns from local asset classes, as well as inflation and global equity.
Taking May 2008 as a starting point, Old Mutual found that South African real estate had significant higher returns compared to the other major classes over this time period.
The other asset classes were relatively similar in their returns however, with a diversified* portfolio, South African bonds, and foreign equity seeing the next highest returns.
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While real estate may be the obvious winner over the 10 and 15 year time period, this is not as easy to see when looking at the data from a more macro-level.
Notably foreign equity is currently the asset class with the best returns when looking at the past five years, while holding a diversified portfolio offers good returns over the five, ten and fifteen year periods – despite not necessarily being the ‘best’ option you can choose.
You can find a complete breakdown of these asset classes over the five, ten and fifteen year periods detailed below.
*Diversified returns are calculated using the sectors weighted evenly at 20%.