Michael Badenhorst

Michael Badenhorst, Chief Investment Officer, Independent Investment Solutions Following years of negative sentiment, the FTSE/JSE All Bond Index delivered 17.18% in 2024 and a further 24.24% in 2025. With inflation remaining well contained, this translated into real returns of 14.18% and 20.64% for the respective calendar years – remarkable figures when set against the long-term expected real return of roughly 5%.

Michael Badenhorst, Chief Investment Officer, Independent Investment Solutions They found that, on average, asset allocation explained more than 90% of a portfolio’s return variability. Furthermore, they found that active management (security selection and market timing) cost the average plan 1.1% per annum when compared to a passive policy benchmark. They confirmed their research in a follow-up study titled Determinants of Portfolio Performance II: An Update (1991).

Michael Badenhorst, Chief Investment Officer, Independent Investment Solutions In an investment landscape defined by complexity, volatility and an overwhelming choice of investment solutions and products, discretionary fund managers have become indispensable partners in supporting better client outcomes. Their contribution goes far beyond portfolio construction. They bring structure, discipline and professional oversight to a process that significantly influences financial success.