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  JSE GROWTH FIGURES for the 45 YEARS : 1960 to 2004
INTRODUCTION :
The tables of comparison below, for the past 45 years of growth on the JSE, as compared with the CPI (inflation) and other popular forms of investment, illustrate clearly the excellent, steady growth achieved by JSE Equity Investments. The figures are expressed as totals for the full period; as decade by decade figures, and as average annual figures. The figures are given for both CAPITAL growth and annual INCOME.
The important point to note is that over 45 years, the JSE has given returns slightly better than TWICE the inflation rate, and returns better than any of the other forms of investment shown in the schedule, after tax. It is also true that being, in the main, a portfolio of JSE investments, most general equity UNIT TRUSTS will have returned a similar level of performance. In fact, the General Equity Unit Trust of Allan Gray performs way ahead of the JSE All Share Index, and is an excellent investment. An investment in the ALLAN GRAY General Equity Unit Trust can be made with a LUMP SUM investment of R10,000 (minimum) or as a savings and investment plan by means of a minimum monthly debit order of R500 per month. (A good alternative or supplement to your PENSION, PROVIDENT or R.A. FUND savings). Or, if smaller amounts are to be invested, then the general equity SAGE FUND can be used where a minimum lump sum of R1,000 may be invested, or a monthly debit order of upwards of R100 per month can be started. These are not only excellent forms of investments for individuals - as retirement savings - but make excellent gifts and "starter" savings plans for children and grandchildren.
SUMMARY of the two tables below (A & B)
Investment Type Total 45yr % growth Growth Ave. %  p.a  
J.S.E. Equities
852
20.3
  
J.S.E. Property Trusts
453
23.4
  
J.S.E. Bonds
471
12.4
  
Bank Fixed Deposits
452
10.1
  
C.P.I. (Inflation)
398
9.5
  
(All figures above over 45 years except Property Trusts - 25 years only)
NOTES: The figures in the Summary Schedule are based on the Average, per decade, Annual % Growth, over the period 1960 to 2004. These Annual % Growth figures are BEFORE TAX. Bank Deposit interest is subject to tax, as is the INCOME portion of both Bonds and Property Trusts. Equity dividends are tax free. Capital Growth on Equities was tax free until 2001. It is now subject to a small Capital Growth Tax. Therefore, one must consider that, AFTER TAX, the growth figures of Property Trusts; Bonds and Bank Deposits will be somewhat lower. Note also that EQUITIES grow at about TWICE the C.P.I. rate.

Based on the JSE All Share Index; Long Dated Bonds; Bank Fixed Deposits; JSE Property Trusts and the Consumer Price Index (C.P.I.)(Inflation) ALL FIGURES expressed as a % - either total or per annum (p.a.) (Any minor differences in totals are due to rounding off) All growth figures are simple % growth. The COMPOUNDING effect of re-investing INCOME has not been considered.

                             A) TOTAL GROWTH by DECADE
Period
JSE Equities
Bonds
Bank Dep
Property   Trusts
Inflation 
Capital
Income
Total
Capital
Income
Total
%
Capital
Income
Total
%
1960 - '69
100.5
57
157.5
-16.5
56.3
39.8
52
-
- 
-
26.3 
1970 - '79
142.6
68.3
210.9
-30.7
89.7
59
82.5
-
-
-
101.4 
1980 - '89
198.3
62.4
260.7
-31.5
140
108.5
123
116.1 
86.4
202.5
146.9 
1990 - '99
132.8
30.6
163.4
28.4
147.8
176.2
144.1
-2.7 
121.9
119.2
94.8 
2000 - '04
45.3
14.5
59.8
29.5
58.6
87.8
50.7
65 
66.6
131.6
28.3
45 Years
619.5
232.8
852.3
-20.8
492.4
471.3
452.3
178.4
274.8
453.3
397.7

                              B) GROWTH as AVERAGE % PER ANNUM (in each decade)
Period
JSE Equities
Bonds
Bank Dep
Property   Trusts
Inflation 
Capital
Income
Total
Capital
Income
Total
%
Capital
Income
Total
%
1960 - '69
10.1
5.7
15.8
-1.6
5.6
4
5.2
-
-
-
2.6
1970 - '79
14.3
6.8
21.1
-3.1
9
5.9
8.3
-
-
-
10.1
1980 - '89
19.8
6.2
26.1
-3.2
14
10.8
12.3
11.6
8.6
20.2
14.7
1990 - '99
13.3
3.1
16.3
2.8
14.8
17.6
14.4
-0.3
12.2
11.9
9.5
2000 - '04
9.1
2.9
12
5.9
11.7
17.6
5.1
13
13.3
26.3
5.7
45 Years Ave
14.8
5.5
20.3
0.8
12.2
12.4
10.1
9.7
13.6
23.4
9.5
(per decade)
%
%
%
%
%
%
%
%
%
%
%
    (Last 25 years only)
ALL the ABOVE FIGURES are PERCENTAGE ( % ) GROWTH PER ANNUM

FINAL NOTE :
When considering these figures and tables, it should be noted that they are based on the JSE ALL SHARE INDEX, which as the name suggests, is based on the performance of ALL listed shares, which are part of the Index. The growth figures are therefore only AVERAGE growth figures for all the shares in question.
It is also a fair assumption therefore, that the TOP PERFORMING 15 or 20 JSE listed companies would have produced total and annual growth figures FAR IN EXCESS of the All Share Index performance. This is therefore a good reason for limiting, in general terms, at least, one's portfolio investments to the better quality, "Blue-chip" type companies. Of course, as with all rules, there are exceptions - called "Special Situations" - where certain other shares will be considered and bought from time to time.

All figures extracted from original schedules kindly provided by Sasfin Frankel Pollak Securities. These tables prepared by Burleigh Investment Management. © BIM 2005  Disclaimer

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