Bond buyers have bagged some decent returns over the past five years, and some analysts say they’re still a must for investor portfolios
28 April 2022 – 05:00
Bagging returns equal to double the rate of inflation is usually the domain of risky assets such as equities or even real estate. However, SA bonds (considered a safe-haven asset class for local investors) managed this feat over the past five years. Will the next five years be as good?
The FTSE/JSE all bond index (Albi) managed an annualised return of 8.9% from 2016, with inflation averaging 4.3% a year for the same period. In the same time frame, the FTSE/JSE all share index delivered an annualised return of 11.4% to the end of March 2022. FundsData, which tracks local unit trusts, shows that 35 funds with large bond holdings surveyed over the past five years returned a compounded average 44%, or 7.3% annualised…