The Star E-dition

ONLY 22% OF SHARES ON JSE DELIVER BOND-BEATING RETURNS

A reason that many equity fund managers don’t beat market indices over the long term may be because such a small portion of shares on the stock market deliver higher returns than bonds. Old Mutual Investment Group portfolio manager Maahir Jakoet and performance analyst Zaahidah Waggie conducted a study looking back 10 years comparing the FTSE/JSE All Share Index (Alsi) and the All Bond Index (Albi). They found that almost 80% of the shares on the JSE underperformed the bond market while posing a higher level of risk. Put another way, 22% of shares were responsible for the Alsi’s performance relative to the Albi over 10 years.

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2021-09-25T07:00:00.0000000Z

2021-09-25T07:00:00.0000000Z

https://thestar.pressreader.com/article/282918093606843

African News Agency