KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES
Category Investments

Looking good

03 November 2004 Angelo Coppola

Offshore foreign currency denominated equity funds attracted R2,1 billion from South African investors in the September quarter, Association of Collective Investments' statistics released today show.

This was double the June quarter total net inflows of just over R1 billion. The bulk of the inflows came from institutional investors (R1,3 billion) well up on the previous R365m.

ACI executive vice chairperson Di Turpin says the institutions are clearly bullish on the outlook for markets and have correctly been using the rand's relative strength to invest offshore.

Retail offshore equity investment, however still remains low key, totalling R780m in the quarter, although slightly higher than the previous R701m.

"With the rand still strong it is good opportunity for investors to diversify their portfolios offshore, lowering the overall investment risk."

Offshore fixed interest funds showed a R56 million (R115m) outflow by retail investors and infows of R89m (R412m) on the institutional side.

Total Foreign Investment Scheme assets were R47,6 billion (R48,9 billion) and with local funds this brings total industry assets to R334 billion.

The number of foreign funds declined from 343 to 327. Turpin says several funds were deregistered the past quarter as they were unable to comply with the strict Financial Services Board regulations governing offshore funds.

"In many respects such as trustees, South African regulations - designed to protect the investor - are far stricter than of those offshore."

Quick Polls

QUESTION

Each year ordinary consumers and their financial and wealth advisers flock to dozens of asset manager ‘outlook’ presentations to find out about economic and investment trends, and the next ‘hot’ company. What do you want asset managers to share during these events?

ANSWER

Asset allocation strategies
Big picture investment themes and how to position portfolios for them
Investment methodologies and historic fund yields
Share tips by the score
fanews magazine
FAnews August 2022 Edition Get the latest issue of FAnews

This month's headlines

Harnessing Africa’s vast renewable energy resources
Disclosure, transparency and empathy in the new age
The impact of inflation and what it looks like
Wealth in the hands of women… why it matters for advisers
A glimpse of life insurance in 2022
Subscribe now