SA collective investment schemes attract record flows from investors

The Covid-19 induced market volatility has not deterred investors.
The Covid-19 induced market volatility has not deterred investors.

South African unit trusts attracted the highest quarterly investment ever recorded by the industry in one quarter in the three months to June.

According to statistics released by the Association for Savings and Investment South Africa (Asisa), investors put R88 billion into the local Collective Investment Scheme (CIS) portfolios. Instead of deterring investors, the market turmoil of mid-March seems to have encouraged those with funds to spare to take advantage of fallen share prices to beef up their investments.

Asisa said the R88 billion represents the highest net quarterly inflows on record. Over a 12-month period, the local CIS industry, which includes unit trusts, hedge funds, property and participation bonds, recorded R156 billion in net inflows by the end of June 2020, and as bad as 2020 has been, most of that money (71%) came in this year. 

Even Asisa is surprised, said the association's senior policy advisor, Sunette Mulder.

"The R88 billion in net inflows includes reinvested distributions of R20 billion, which means R68 billion was brand new money that had not been invested in CIS portfolios before," said Mulder.

She added that half of the inflows in the last quarter – around R44 billion – was invested by individual investors.

Regarding assets favoured by investors, interest bearing portfolios attracted the most money, as investors ditched some equity classes – save for general equity portfolios – for these and money market accounts.

Compiled by Londiwe Buthelezi

* Stay on top of what’s happening in the world of business. Subscribe to News24.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.20
(-0.25)
ZAR/GBP
20.40
(-0.01)
ZAR/EUR
18.42
(-0.06)
ZAR/AUD
11.29
(-0.13)
ZAR/JPY
0.15
(+0.06)
Gold
1835.48
(-0.24)
Silver
24.14
(+0.55)
Platinum
1061.00
(+3.78)
Brent Crude
48.78
(+0.95)
Palladium
2336.01
(+1.71)
All Share
59419.37
(+0.80)
Top 40
54500.04
(+0.61)
Financial 15
11646.83
(+2.17)
Industrial 25
79758.36
(+0.10)
Resource 10
57015.33
(+0.70)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 384 votes
No, I did not.
52% - 948 votes
My landlord refused
27% - 499 votes
Vote