Category Investments

A slightly different picture

24 July 2006 Angelo Coppola

The ACI released their quarterly results on Thursday (20.7) and the message is slightly different with one large institutional transaction of R8bn being the main cause for a major shift in the net inflow position for the collective investment industry.

Di Turpin says that the news is slightly different than in past quarters. There is steady growth in funds climbing to 679 funds, with R455bn in assets for the quarter, which is much the same as last quarter. What is different is thatwe are taking a breather, says Turpin.

Net inflows are at R50bn for the year to end June, from R52bn for the year to June 2004.

The net position is down substantially to R4.9bn. The March numbers were at R17.4bn. The retail industry is at about R11bn. The institutional side showed one large transaction in the quarter the company concerned moved money out of a collective investment, and into a segregated fund. Being upbeat Turpin mentioned that at least the money stayed in the financial services sector.

Institutional business now accounts for 1/5 of inflows.

Net sales increased into asset allocation funds drop in money market funds and fixed interest increasing. Fixed interest sector was the big winner, taking in R6.7bn.

Between 1998 and 2006, the movement from equities to asset allocation and money market funds has been substantial. Turpin wonders why investors aren't getting more involved in equity investments.

In terms of our international investment appetite for equities, SA sits with France and Italy in the middle of the pack, not really into equities, while the other two countries mentioned have special tax dispensations for people there to invest in other sectors, which South African investors don't have.

Jeremy Gardiner, director, Investec Asset Management says that the latest statistics indicate that the average investor's obsession with retail property as an investment is starting to wane.

He says it's also encouraging to see close to R1bn flowing into worldwide and foreign funds, suggesting that investors are starting to diversify offshore again.


Quick Polls


We have watched with interest as each of the country’s large life insurers report their 2021 life claims statistics, with soaring claims and claims values. That got us thinking: how do the big life insurers compare against one another, from an IFA perspective?


An insurer is an insurer is an insurer
All are excellent: would not deal with them otherwise
There is one insurance brand that stands out for me
Tied agent: but my brand is the best out there
fanews magazine
FAnews June 2022 Get the latest issue of FAnews

This month's headlines

A free smoothie does not make a loyal customer
Consequential loss policy court cases
Everything you need to know about death, disability and severe illness cover post-emigration
Are advisers doing all they can for clients’ portfolios?
Financial advisers need help - navigating the complex ESG fund environment
Subscribe now