A recent analysis by Citywire showed that the top-performing SA equity funds in the first four months of this year were some of the worst performers last year.
According to Patrick Cairns, the analysis of funds in the ASISA South Africa equity general category shows just how significantly the return drivers on the JSE have shifted in recent months:
- Less than one fifth of the South African equity funds that were top quartile performers in 2020 have been in the top quartile again over the first four months of 2021.
- The four best performers so far this year all delivered negative returns last year.
- Almost half of the top quartile performers for the year-to-date underperformed the median fund in 2020.
Year-to-date
Cairns also points out that six of the 10 best performing funds so far this year were either third or fourth quartile in 2020. All six of them delivered a negative return last year. “Only one of the 10 best performers so far this year – the Prudential Equity fund – was in the top quartile last year.”
| Top 10 SA equity funds YTD | |||
| Fund | YTD return | 2020 return | 2020 quartile |
| Excelsia Equity 27Four fund A1 | 23.2% | -0.4% | 3rd |
| Aylett Equity Prescient fund A1 | 22.0% | -0.7% | 3rd |
| Ninety One Value fund R | 20.6% | -7.0% | 4th |
| 1nvest Sector Neutral Value Index fund A | 20.0% | -5.6% | 4th |
| Corion Prime Concentrated Equity fund A | 19.1% | n/a | n/a |
| Kagiso Equity Alpha fund A | 18.8% | 3.5% | 2nd |
| Prudential Equity fund A | 18.7% | 9.2% | 1st |
| Steyn Capital Equity Prescient fund A1 | 18.5% | -10.4% | 4th |
| SIM Top Choice Equity fund A1 | 18.4% | 6.4% | 2nd |
| Integrity Equity Prescient fund A1 | 18.0% | -14.7% | 4th |
Source: Morningstar
Longer term
The analysis also measured five-year returns. “… it is clear how consistency across market cycles has paid off. Of the 29 funds in the top quartile over five years, only 10 did not beat the category average in both of the more recent periods under review. A significant majority were in the top two quartiles both last year and in the first four months of 2021,” Cairns highlights.
The table below shows the top 10 performers over five years, and their relative performance over 2020 and so far in 2021.
| Top 10 SA equity funds over five years | |||||
| Fund | 5 year return | 2020 return | 2020 quartile | YTD return | YTD quartile |
| Fairtree Equity Prescient fund A1 | 12.3% | 19.8% | 1st | 14.3% | 2nd |
| Rezco Equity fund A | 11.0% | 18.3% | 1st | 12.9% | 3rd |
| Kagiso Equity Alpha fund A | 11.0% | 3.5% | 2nd | 18.8% | 1st |
| 36ONE BCI Equity fund A | 10.8% | 18.9% | 1st | 15.4% | 1st |
| Kagiso Islamic Equity fund A | 10.1% | 5.2% | 2nd | 17.1% | 1st |
| Aylett Equity Prescient fund A1 | 9.7% | -0.7% | 3rd | 22.0% | 1st |
| Counterpoint SCI Value fund A1 | 9.7% | 18.3% | 1st | 18.0% | 1st |
| SIM Top Choice Equity fund A1 | 9.5% | 6.4% | 2nd | 18.4% | 1st |
| Truffle SCI General Equity fund A | 9.0% | 13.1% | 1st | 15.2% | 2nd |
| Coronation Equity fund A | 8.9% | 14.2% | 1st | 12.9% | 3rd |
Source: Morningstar
