The local collective investment schemes industry reported net inflows of R21 billion for the second quarter of this year, bringing total net inflows for the 12 months to the end of June to R110 billion, reports the Association for Savings and Investment South Africa (Asisa).
Despite the healthy net inflows during the second quarter, total assets under management dropped to just below the R3 trillion mark first achieved in the fourth quarter of last year. Assets under management stood at R2.98 trillion at the end of June, compared to R3.09 trillion at the end of March.
Commenting on the industry statistics, Sunette Mulder, senior policy advisor at Asisa attributed the 3.4% decline in assets under management during the second quarter of this year to extreme stock market volatility.
“The FTSE/JSE All Share Index (Alsi) took a hammering in June, which resulted in an 8% drop for the month. Looking at the quarter, the Alsi was down by 11.69%, while in rand terms the FTSE 100 was down 0.46% and the S&P 500 dropped by 5.94%. All in all, not a good quarter for equities,” Mulder said.
Mulder said that, at the end of June 2022, 19% of assets under management were held in equity portfolios, and 31% in interest-bearing portfolios. Just under half of assets (48%) remain in multi-asset portfolios, with the rest in real estate portfolios (2%).
Mulder said 23% of the inflows in the 12 months to the end of June came directly from investors. “This does not mean that these investors acted without advice. A number of direct investors pay for advice and then implement the investment decisions themselves.”
Intermediaries generated 26% of inflows. Linked investment services providers generated 34%, and institutional investors such as pension and provident funds contributed 17%. - Staff Reporter