If you are looking for a way to grow your money in the long term, investing in unit trusts might be a good option for you. Unit trusts are collective investment schemes that pool money from many investors and invest it in a portfolio of assets such as shares, bonds, property or cash. Unit trusts offer diversification, professional management, liquidity and affordability to investors who want to access different markets and sectors.
But how do you choose the best performing unit trust in South Africa? There are hundreds of unit trusts available in the country, each with different objectives, strategies, risks and returns. To help you narrow down your choices, we have compiled a list of some of the top-performing unit trusts in South Africa over the past decade, based on their annualised returns as of February 2023. These unit trusts have consistently delivered above-average returns for their investors over a 10-year period, which is a good indicator of their quality and performance.
Please note that past performance is not a guarantee of future results, and that you should always do your own research and consult a financial adviser before investing in any unit trust. You should also consider your risk appetite, investment horizon and personal goals when choosing a unit trust that suits your needs.
Here are some of the best performing unit trusts in South Africa as of February 2023:
1. GinsGlobal US Equity Index fund: This fund tracks the performance of the MSCI USA index, which consists of large and mid-cap companies in the US market. The fund has delivered an impressive annualised return of 22.1% in rand terms over the past 10 years, making it the top-performing fund available to South African investors. The fund has a low fee of 0.4% per annum and a minimum investment amount of R5 000.
2. Old Mutual Global Equity fund R: This fund is an actively managed global equity fund that invests in companies with strong growth potential across various regions and sectors. The fund is managed by Ian Heslop and Amadeo Alentorn at Jupiter Asset Management, who use a quantitative approach to identify undervalued and high-quality stocks. The fund has achieved an annualised return of 21.9% in rand terms over the past 10 years, outperforming its benchmark and peers. The fund has a fee of 1.5% per annum and a minimum investment amount of R10 000.
3. SEI GIF Global Select Equity USD Instl Acc: This fund is another actively managed global equity fund that invests in companies with sustainable competitive advantages and attractive valuations across developed and emerging markets. The fund is managed by SEI Investments Management Corporation, which uses a multi-manager approach to select sub-advisers with different styles and strategies. The fund has delivered an annualised return of 20.7% in rand terms over the past 10 years, beating its benchmark and category average. The fund has a fee of 1.7% per annum and a minimum investment amount of $100 000.
4. SFL Stanlib High Alpha Global Equity fund A: This fund is also an actively managed global equity fund that invests in companies with strong earnings growth and competitive advantages across various regions and sectors. The fund is managed by Stanlib Asset Management, which uses a bottom-up stock selection process to identify high-conviction ideas with attractive risk-reward profiles. The fund has generated an annualised return of 20.7% in rand terms over the past 10 years, outpacing its benchmark and peers. The fund has a fee of 1.6% per annum and a minimum investment amount of R5 000.
5. Stout Stanlib Global Equity fund A: This fund is another actively managed global equity fund that invests in companies with strong fundamentals and growth prospects across various regions and sectors. The fund is managed by Stout Risius Ross Advisors LLC, which uses a proprietary valuation model to identify undervalued and high-quality stocks with sustainable earnings growth. The fund has achieved an annualised return of 19.5% in rand terms over the past 10 years, surpassing its benchmark and category average. The fund has a fee of 1.6% per annum and a minimum investment amount of R5 000.
These are just some examples of the best performing unit trusts in South Africa over the past decade, but there are many more to choose from depending on your preferences and goals. You can use online tools such as Investonline.co.za or Moneyweb.co
