In the short term this fund continues to deliver returns in line with the median of the general equity unit trust sector, however in the long term it outperforms most competitors. For the calendar year 2013 a return of over 21% was achieved.

At first glance this result looks outstanding, however, in dollar terms the JSE actually delivered negative returns given the sharp deterioration in the Rand. Not surprisingly most of the performance of the JSE can be attributed to the shares benefitting from a falling rand or those deriving most of their earnings outside South Africa. In fact more than half the return of your fund for 2013 can be explained by a holding in Sarasin foreign unit trust as well as just 6 companies namely Naspers, Sasol, MTN, Richemont, SAB and Old Mutual. The most noticeable detractor of value for 2013 is to be found with the local mining operators, where profits have been impacted by the adverse conditions in the labour market and struggling commodity prices.

For 2013, investing passively in the equity market, has certainly proved to be a healthy strategy, particularly in protecting against inflation and Rand weakness. Whilst it is practically impossible to predict how 2014 will compare, the JSE is somewhat at the mercy of global economic developments as well as local politics in an election year.