Page 189 - Profile's Unit Trusts and Collective Investments 2021 issue 2

Fact Sheet Tips

Chart B Chart C

30 20

9 5

-12 -10
20 40 17 34
This scale applies to funds where there is at least 2 years performance This scale applies to the majority of funds – provided there is at least 3
history available. The fund’s position is based on the lump sum figure and years performance history available. The fund’s position is based on the
the volatility figure (standard deviation) for 2 years. lump sum figure and the volatility figure (standard deviation) for 3 years.
mind that you may have paid initial charges or broker commission. Also, these are price-based charts
and therefore do not incorporate the reinvestment of dividends.
Relative Strength Charts

The Relative Strength charts show the performance of the unit price relative to the FTSE/JSE All
Share index or a more specific JSE sector. Mining & Resource funds are compared to the FTSE/JSE
RESI10 index; gold funds are shown relative to the FTSE/JSE All Gold index; Industrial funds relative
to the FTSE/JSE Industrial index; and so on. The relative strength chart is constructed by dividing the
unit price by the value of the JSE index on each Figure 2
matching period. These charts give a graphical
view of whether a fund has outperformed or
underperformed the relevant JSE index.
To make the relative charts easier to interpret,
they have been normalised so that the Y-axis
range is usually between 0.5 and 1.5. Each
Relative chart is a measure of the percentage price
change of a fund compared to the percentage
price change of a benchmark like the FTSE/JSE
All Share index.
A relative chart with a horizontal line at 1.0 means that the fund tracks exactly
the up and down movements of the benchmark index.
A, R and B Classes

In terms of changes approved by the Financial Services Board (now Financial Sector Conduct
Authority (FSCA)) which came into effect on 1 April 2000, unit trusts may now apply different fees to
Figure 4 Figure 3

In this illustration the fund outperformed the index from January to April, A relative chart with a line that slopes upwards indicates that the fund has
underperformed the index from May to August, and then outperformed the outperformed the index (in this illustration by 50%). Note that the slope of
index again for the remainder of the year. the line is important, not where it starts (ie, the fact that the graph starts at
0.8 in this illustration does not mean the fund is underperforming on the
1st of January).

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Profile’s Unit Trusts & Collective Investments — DOMESTIC