South Africa’s collective investment schemes (CIS) industry ended 2025 with assets under management (AUM) of R4.58 trillion and near-record net inflows of R196 billion, marking 60 years since the launch of the country’s first unit trust in June 1965. Yet one statistic stands out: investors withdrew R16.5bn from portfolios invested exclusively in South African equities.
The withdrawals from the SA Equity SA General category came during a year when the FTSE/JSE All Share Index (ALSI) delivered a total return of 42.4% in rand terms, supported by soaring precious metal prices and a rally in mining stocks.
The trend was already visible earlier in the year. By the third quarter of 2025, investors had withdrawn R10bn from SA equity portfolios, despite the category delivering average returns of 20.6% over the year to September.
Sunette Mulder, the Association for Savings and Investment South Africa’s chief of staff, said the outflows may reflect investors taking profits after the market’s strong run.
During a media briefing on 10 March, she cautioned that any explanation remains speculative but suggested investors or portfolio managers might have decided to realise gains and reposition portfolios.
Mulder said the market volatility seen at the start of 2026 suggests such decisions may not necessarily have been misplaced.
“If we look at what’s happened subsequently this year… the markets have been in a bit of turmoil,” she said.
Even in a year of exceptional returns, South African investors continued to favour diversified portfolios over concentrated equity exposure.
Diversification remains dominant
Investor flows in 2025 confirm the continued preference for diversified and income-focused portfolios.
The largest inflows went to:
- SA interest-bearing short-term portfolios: R56.4bn.
- SA multi-asset income portfolios: R52.1bn.
- SA multi-asset high-equity portfolios: R34.7bn.
Multi-asset portfolios remain the core of the CIS industry.
By the end of 2025:
- 50% of CIS assets were invested in SA multi-asset portfolios,
- 29% in SA interest-bearing portfolios, and
- 20% in SA equity portfolios.
Mulder said this differs from global investment patterns, where roughly half of CIS assets are invested in equity portfolios. South African investors instead favour diversified portfolios combining multiple asset classes.
Earlier in the year, she described flows into multi-asset income and high-equity funds as reflecting caution, alongside a willingness to participate in equity market gains.
“A whole lot of caution, but with a healthy appetite to participate in the stock market run,” she said.
New equity category reveals investor behaviour
The SA Equity SA General category, which recorded the R16.5bn outflow, was introduced in October 2024.
It distinguishes portfolios invested entirely in South African equities from those investing at least 55% locally but retaining some offshore exposure.
Although the purely local category saw large withdrawals, the broader SA Equity General category attracted net inflows of R5.4bn in 2025, including R12.5bn in the fourth quarter.
The withdrawals from the purely local category accelerated late in the year. In the fourth quarter alone, SA Equity SA General portfolios recorded net outflows of R15.9bn.
Mulder said the category also delivered strong performance.
On average, SA Equity General portfolios produced returns of about 30% in 2025, well above inflation.
Over five years, the category delivered average annual returns of 15.8%.
Strong growth for the CIS industry
Despite the equity outflows, the CIS industry recorded a strong year.
AUM increased 18.1% from R3.87 trillion at the end of 2024 to R4.58 trillion by December 2025, largely because of strong equity market performance.
The industry crossed an important milestone earlier in the year. By the second quarter of 2025, CIS assets exceeded R4 trillion for the first time, reaching R4.16 trillion.
Read: CIS industry tops R4 trillion as investors ride JSE rally
By the third quarter, assets had risen further to R4.4 trillion.
Read: Second-highest quarterly CIS inflows on record in Q3
Near-record inflows
CIS management companies recorded net inflows in every quarter of 2025, resulting in annual net inflows of R196bn – the second highest in the industry’s 60-year history.
The record remains R213bn in 2020.
Of the R196bn recorded in 2025:
- R67bn came from new investments, and
- R129bn came from reinvested dividends and interest.
This pattern has been evident for several years. Even during periods of weaker investor confidence, many investors continue reinvesting income distributions.
The contrast with 2024, when the industry recorded record net outflows of R35.25bn, illustrates how quickly flows can shift as markets strengthen.
Read: Record R35.25bn outflow marks cautious year for South Africa’s CIS market
Offshore diversification remains strong
Demand for offshore exposure also remained robust.
Foreign currency-denominated CIS portfolios registered in South Africa ended 2025 with R1.1 trillion in assets, an 11% increase from R975bn at the end of 2024.
These portfolios recorded net inflows of R28.1bn during the year.
At the end of 2025, South African investors could choose from 791 foreign currency-denominated portfolios.
The local CIS industry also sits within a much larger global investment ecosystem. According to the International Investment Funds Association, there were 147 624 CIS portfolios worldwide with assets of $85 trillion as of September 2025.
South African investors had access to 1 934 locally registered CIS portfolios at the end of 2025.
Strong markets, cautious allocations
The 2025 statistics highlight a defining feature of South Africa’s investment landscape.
Strong equity markets lifted CIS assets to record levels and helped generate near-record inflows, yet investor allocations continued to favour diversified portfolios and income-focused strategies.
The withdrawals from purely local equity funds therefore appear to reflect portfolio rebalancing rather than a rejection of equities.
As the CIS industry enters its seventh decade, the data suggests that South African investors remain focused on diversification – even during periods of strong equity market performance.
