Making hay while the sun shines?

John Kinsley, chairman of the ACI, says that collective investments only make up 5% of the total capitalization of the JSE, but he says that things are set to change.

Retirement funds and the changing demographics will change investment decisions that investors make, as liabilities and requirements change.

There will have to be additional retirement funding provision – time frame two decades.

He says that there is also a change in product preference. The life offices are happy at the moment, as recurring premiums are still increasing but the single premium business is dropping, in terms of the life offices, and Kinsley says that perhaps it is time to ‘make hay while the sun shines’.

Accordign to Kinsley, who sights survey information, retirement fund contributions are way below the claims paid – for the last review period – 2003, and there has to be additional funding for retirement funding, this is: “Something that opens up an opportunity for the collective investments schemes industry.”

Kinsley says that the boutique operators are starting to show themselves and there is a requirement from some investors. They are here to stay and they play a significant role in investment offerings.