Investonline has produced another superb investment performance across its recommended portfolios. This is during a time when markets remain volatile and the JSE All Share Index is only up 3% over the last 12 months.
The Aggressive portfolio grew 17.2% over the last 12 months outperforming the industry average by 16.5% due to a strong rebound in the Coronation Top 20 fund and the introduction of the Investec Value fund.
The Moderate portfolio grew 15% over the last 12 months outperforming the industry average by 10.6% due to the strong performance of the Prosperity and Allan Gray Balanced funds.
The Conservative portfolio grew 9.2% over the last 12 months outperforming the industry average by 3.6% due to the strong performance of the Prosperity and Allan Gray Optimal funds.
| To March 2016 | 1 Year | 3 Years* | 5 Years* |
|---|---|---|---|
| IOL Aggressive Portfolio | 17.2 | 17.3 | 17.3 |
| Industry average | 0.7 | 10.8 | 11.8 |
| Outperformance | 16.5 | 6.5 | 5.5 |
| IOL Moderate Portfolio | 15.0 | 14.3 | 14.8 |
| Industry average | 4.4 | 10.6 | 11.7 |
| Outperformance | 10.6 | 3.7 | 3.1 |
| IOL Conservative Portfolio | 9.2 | 10.4 | 9.9 |
| Industry average | 5.6 | 8.5 | 9.8 |
| Outperformance | 3.6 | 1.9 | 0.1 |
| * Per annum return |
In this last quarter the key investment change was to reduce our foreign currency exposure in the aggressive and moderate portfolios from 36% and 38% respectively to 25%. At the point of this switch in January the rand was 16.68 to the US dollar, which has now strengthened to 14.68 (+12%). We believe the Rand should continue to strengthen during the year to below 14 to the US Dollar.
To make this asset allocation change we switched out of the Coronation Global Capital Plus fund which had been a superb performer over the last three years producing an annualised return of 23% to December 2015. Since then, with the strengthening of the Rand from January this fund has produced a negative return of -3% in the quarter to March 2016.
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