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 6 smart ways to select the best medical scheme

It’s important to belong to a medical scheme that offers great benefits at affordable prices. However, due to insufficient knowledge, many people find themselves paying higher premiums for a medical scheme which does not even meet their needs.

Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Check the interest before you take a loan

Justmoney takes a look at what influences the interest rate on a personal loan, the difference between secured and unsecured loans, and its impact on the interest rate.

One retirement, so many funds – pick the right one

Saving for retirement should be one of your priorities. However, it can be confusing to choose between a pension fund, provident fund, preservation fund, or a retirement annuity if you’re not familiar with them.

Deals

Wimpy Cheese Griller Brekkie Special

Price: R49.90
When: Until 9 September
Where: Nationwide

Mowana Spa Me Time Indulge Special

Price: R899
When: Until 31 August
Where: Fourways

Premier Hotels Weekend Getaway Special

Price: From R540
When: From 1 September
Where: Nationwide