Retirement fund members have been having a good time with their investments.
The latest five-year performance table in the ABSA Consultants and Actuaries performance survey for the period ending June shows investment managers have literally been raking the money in for retirement fund members.
Investment managers achieved an average return of 21,3 percent on funds under management. Over the period the average inflation rate was 9,8 percent giving retirment funds a solid real return.
Norwich topped the polls for the third consecutive period on five years with 27,6 percent this time round. Norwich was followed by AGIC, Fleming Martin and the Sanlam 200 plus portfolio.
The survey is undertaken every six months by ABSA Consultants and Actuaries for the retirement fund industry.
Willie Lategan, an actuary at ABSA, however warned that various factors should be taken into account when deciding on an investment manager and not only historical performance.
Other factors included underlying risk in the portfolio, long-term policy in asset composition, investment contracts and investment philosophy.
On a risk adjusted basis Norwich retained its first position with 25,9 percent while Liberty Life came in second with its actual return of 22 percent being adjusted upwards to 24,6 percent.
Over one year Metboard achieved the highest return with 37,5 percent with Old Mutual's new Aggressive Fund coming second with 35,6 percent and Sanlam's 200 plus portfolio making a 33 percent.
Lategan said since the amendments to exchange control regulations almost R1 billion in retirement fund assets had been invested offshore, mostly through asset swaps.
Most of the new money available from retirement funds over the past 12 months had been attracted by Investec, Rand Merchant Bank, Board of Executors and Norwich.