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 New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria