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2016: The Year in Graphs

2016 was a tough year for local equities and was the worst performing Asset class of the 4 biggest Asset Classes in South Africa:

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But Even after a year of under-performance by local equities, if you take a graph over a 5 year period, the only other asset class outperforming equities is listed property. Local Equities gave you double the return than SA cash.

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The biggest surprise this year apart from Trump winning the Election, Brexit and the Springboks performance (or lack thereof) is the appreciation of the Rand. The graph below shows the strengthening of the rand(this period includes Nenegate).

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The exchange rate can have a significant impact on the investment return of foreign investments over shorter term horizons.

We believe investors need to take a longer-term view and look past the shorter-term movements of currency.

4

Investors personal circumstances, risk profile and longer term financial planning objectives are all important factors to consider when investing offshore.

We believe that when investing in international assets, investors need to take a longer term view and look past the shorter term movements of the currency.

 

 

 

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