Page 122 - Profile's Unit Trusts and Collective Investments 2021 issue 2

CHAPTER 6

Chart 6.10 Annualised volatilities of unit trust categories (excluding outliers), 3 years to end July 2021
Financial 24.12 28.43
Real Estate 21.81 33.19
Resources 20.96 31.54
Large Cap 15.70 24.26
Global-Interest Bearing-Short Term 14.93 15.05
Mid and Small Cap 14.77 23.04
Global-Real Estate 14.57 24.64
Industrial 14.14 15.88
Regional-Equity 13.96 31.32
Global-Interest Bearing-Variable Term 13.84 17.14
Global-Equity 13.80 29.43
Equity General 10.54 25.94
Global-Flexible 10.16 21.11
Global-Multi Asset 10.16 21.11
Worldwide-Multi Asset-Flexible 4.58 24.95
Multi Asset-High Equity 4.17 19.83
Multi Asset-Medium Equity 4.04 15.09
Interest Bearing-Viariable Term 3.65 15.37
Multi Asset-Low Equity 2.95 12.56
SA-Interest Bearing-Short Term 0.11 7.51
Multi Asset-Flexible 28.05
Multi Asset-Income 23.03
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

Chart 6.10 highlights the importance of looking at the specific risk rating (volatility) of any
particular fund in which you are interested. The sector overlap in the risk spectrum is such that
fund selection by sector is too crude to be reliable.
Disclaimer and Cautions
Please note that this is not a device for choosing funds; rather, it is a means of ensuring that
funds you are interested in have an appropriate risk level for your own risk profile. You should not
rely on this risk profile tool as your final authority in choosing a fund. Also, please bear in mind
that this is a fairly crude method of evaluating your risk profile – there are no doubt other factors
specific to your own situation that need to be taken into account. Finally, bear in mind that fund
volatilities change over time.
This risk profile worksheet has been adjusted for South African fund volatilities at end
July 2021 – scores obtained will get progressively less meaningful as time goes on, and scores
obtained may not be meaningful for other markets (like offshore funds). We do not recommend
using this worksheet after March 2022.

120 Profile’s Unit Trusts & Collective Investments — Understanding Unit Trusts