A good quarter

The ACI reports that the local bulls are still out there with some R11bn worth of inflows into unit trusts in the March quarter, nearly double the December quarter, and all signs are that the industry is on track to do what it did in 2004.

According to Di Turpin of the ACI, with the flexible property funds and fund of funds taking strong inflows, coupled with the news that total industry assets were up to R319bn, with an additional 14 funds added to the pot, now totaling 551.

The number is up to R360bn if the locally registered foreign collective investment schemes are included, and the funds number up above 823.

Turpin says that the foreign funds are starting to attract interest at last, and clients that are in these funds feeling a little better as the international markets start performing.

Nothing much has changed here. People seem not to diversify easily, with over 81% are made into the local markets.

While inflows into domestic equity funds show that investors still believe that there is some upside potential in the low interest rate environment.

Generally Turpin says that the retail funds are taking 77% of the income: This is a healthy sign that the inflows are coming from individual investors. The fixed interest variable specialist funds are showing good increases in splits.

On the retail front Turpin confirmed that the white label funds – those that are administered by the management companies – represented 2.4% of total assets, while accounting for 23% of all local funds and some 10% of inflows.

This is a good sign as it shows that there is strong retail interest.

There has been some interesting behaviour in the last quarter – outflows from the targeted absolute and real return funds has occurred for the first time since they were launched. This is driven by institutional activity.