R1 billion net flows into offshore funds

Both retail and institutional investors boosted their offshore investments in the September quarter with R1 billion net inflows into collective investment funds.

This was in sharp contrast to the previous quarter where these foreign currency denominated funds had net outflows of nearly R3 billion.

"After a R1,8 billion net inflow in the June quarter retail funds received R616 million while institutional funds had positive inflows of R390 million as against a R4,8 billion outflow the previous quarter, says Di Turpin Association of Collective Investments chief executive.

"Approximately 45 percent of all offshore assets are in retail funds, in sharp contrast to local funds where some 76 percent are in retail funds. It is also interesting to see the demand for equity exposure, with offshore equity funds taking 90 percent of all flows unlike the trend in domestic funds."

Turpin adds that the firm rand was probably an incentive for many to invest offshore in spite of volatile markets.

Investors have some 343 funds with total assets of R106.6 billion to choose from which offer the opportunity to lower market risk and diversify portfolios.