Positive prospects in the growth category of the collective investment industry have been confirmed by the latest economic data, says Stanlib, the country’s largest unit-trust company.
Figures published in the last week of February indicate that the economy grew by 5,6% in the last quarter of 2006, the highest level since the 7,2% recorded in the third quarter of 2004.
“The figures were ahead of expectations,” says Richard Middleton, manager of the Stanlib Capital Growth Fund and head of the Stanlib growth franchise.
“The construction industry and associated sectors appear to be particularly buoyant. This is good news for domestic equities generally and growth stocks in particular, as most funds in this category have a strong underpin in construction counters and companies positioned to do well in the current economic environment.”
Some of the top-performing funds in this equity category have achieved annualised growth of more than 40% over the past three years.
Middleton adds: “The sector has enjoyed a strong run, but judging by the latest economic indicators and continuing capital investment in national infrastructure, the prospects continue to look good for growth investors.”