The Anchor BCI Diversified Moderate fund outperformed relative to the category average, which lost 0.9%. The best performing category were the Bond funds which benefitted from a stronger Rand and a lowering of yields.

The Sanlam Select Bond Plus fund gained 3.2% whilst the STANLIB ALBI Bond Index Tracker was up 3.4%. Comparatively, the JSE All Bond Index returned 3.0%. Income funds also contributed positively to the portfolio. The Anchor Income segregated mandate returned 1.3% as result of good performance in selected property shares. The Nedgroup Investments Flexible Income yielded 0.5% but fell short of a cash return of 0.6%.

The investment in the offshore MSCI World Index tracker, the GinsClobal Global Equity Index fund, reversed most of the gains made last month because of the recovery of the Rand. The fund lost 6.2% In Rand terms, but gained 0.4% in US Dollar terms. Equity funds struggled, with the industrial sector in particular coming under pressure. Consequently, the All Share Index depreciated 0.9%.

The Stanlib ALSI 40 fund, which tracks the Top 40 Index, was down 1.3%. The Prudential Dividend Maximiser lost 2.2% whilst the Anchor BCI Equity Fund lost 2.0%. Given that both these funds utilise their 25% offshore allowance and given the strengthening of Rand, the underperformance is within expectation.

The unexpected result of the UK referendum on EU membership caused turmoil in global markets as Equities fell and Bonds rallied. Locally, Government Bonds gained 4.0% during June whilst Inflation Linked Bonds gained 1.9%. Listed Property benefitted from the strong Bond market and gained 1.2%. Equities were the worst performing asset class and lost 3.0%. Cash yielded 0.6% and the Rand remained volatile, gaining 7.4% against the US Dollar.

In spite of a selloff in banking shares on the day the referendum result was announced, the Financial sector was the least negative sector losing 2.8%. Resources lost 3.3% but remain the best performing sector year to date. The Industrial sector was the hardest hit, losing 4.0% during the month.

The Anchor BCI Diversified Moderate Fund is a multi-managed portfolio with a moderate risk profile that aims to provide investors with a moderate long-term total return. This Fund is appropriate for who want exposure to Anchor's capabilities in a solution that is appropriately blended and diversified with other offerings to ensure a more consistent return profile.

After starting the year on the back foot, markets made strong gains in March, with every asset class delivering positive returns. Listed Property was the best performing class for the second month, returning 9.5%. Equities gained 6.4% and Government Bonds gained 2.6%. Inflation linked bonds returned 0.9% and Cash 0.5%. The Rand strengthened against all major currencies, appreciating 6.8% against the Dollar.

All major equity sectors ended the month positive. Financials had a large gain, appreciating 12.4%. Both the Industrial and Resource sectors gained 4.7%. Year to date Resources remain the top performing sector, gaining 13.1%. The strong performance from Financials places the sector at 5.4% for the year. The Industrial sector however remains in negative territory, down 0.6%.