Guiding consumers since 2009

Institutional investors bring R1bn back to SA

By Staff Writer

Regis Nyamakanga

Financial Services Editor

SOUTH African institutional investors withdrew more than R1bn from off shore collective investments in the quarter through March, and also pumped R4bn into rand-denominated retail and institutional funds, Association of Collective Investment (ACI) CEO Di Turpin said yesterday.

This was despite a weakening rand that bolstered foreign-denominated investments, but Turpin said this could be due to a renewed interest in the domestic market.

Offshore retail funds, however, continued to attract investors despite volatile world markets, with net inflows of R459m added to R803m in the December quarter.

Turpin said institutional funds had suffered a capital flight of R1,04bn, of which R443m came from equity funds and R602m from fixed interest. This brought the total net investment for all foreign denominated funds to a negative R586m in the quarter.

Foreign retail equity funds were the preferred investment destination as net inflows from this segment totalled R210m, while asset allocation funds attracted R185m and fixed interest R64m. Turpin said foreign funds’ total assets grew from R107,9bn in the December quarter to R117,9bn at the end of last month as the number of funds swelled to 369. This was largely due to the depreciation of the rand against its major trading currencies.

Foreign-denominated assets had more than doubled in the past five years. These funds are regulated by the Financial Services Board and subject to the same governance as is applied to domestic rand-based funds, she said.

Turpin said collective investments in other countries had succumbed to global financial turmoil, but SA’s domestic collective investments stayed positive, chalking up net new investments of R4bn in the quarter to March.

The latest ACI quarterly statistics showed retail fund flows accounted for R2,8bn, and institutional topped R1bn.

Turpin said there were heavy outflows from equity funds with the domestic equity funds sector down R6,6bn and asset allocation by R1bn. But this was offset by very strong flows into fixed interest funds of R11,4bn.

Money market inflows were R9bn.

Recent Articles

Featured Financial conflict can lead to divorce – here’s how to prevent it

Talking about money is an intimate matter, and it may be uncomfortable for couples who’ve managed to avoid this discussion. However, it will become necessary at some point or other. Do you think you’re ready to talk to your partner about money?

This is how much you should spend on accommodation

As your salary changes over time, your expenses will change too. But what if you’re spending an exceedingly large percentage of your income on accommodation? Is it feasible or even recommended in our current stressful financial climate?

How to be “future greedy” with passive income

Setting up numerous streams of income is a safe way to protect yourself from the loss of your main stream of income. Better yet, setting up passive streams of income will ensure you always have money coming in, without costing you additional working hours. So, what is “passive income”, and how can you earn this?

Can your debt be cancelled?

It sometimes happens that you struggle so much to pay your debt that you think of asking your creditor to write it off. But debt doesn’t just get written off. There are conditions that must be met and procedures that must be followed before the creditor cancels your debt.

 

Deals

FNB senior customers can earn up to 30% back in eBucks at Clicks

Price: Available on request
When: From 5 August 2020
Where: Nationwide

Bakwena Spa Women’s Day Special

Price: R549 per person
When: Until 31 August 2020
Where: Centurion, Hartbeespoort, Kuils River

Dis-Chem Pap Test Special

Price: R180
When: From 3 August to 11 September 2020
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions