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Local CIS industry sees record net inflows despite Covid-19 woes

The Association for Savings and Investment South Africa (ASISA) recently released the Collective Investment Schemes (CIS) industry statistics for the quarter and year ended September 2020. South African investors committed R57 billion in net inflows to local Collective Investment Schemes in the third quarter of this year, bringing to R165 billion the total net inflows for the 12 months to the end of September 2020.

The local CIS industry held assets under management of R2.58 trillion, spread across 1 650 portfolios. Just under half of these assets were held in South African (SA) Multi Asset portfolios (47%), with the rest in SA Interest Bearing portfolios (36%), SA Equity portfolios (16%) and SA Real Estate portfolios (1%).

According to Sunette Mulder, senior policy advisor at ASISA, the local CIS industry managed to record some of the highest net inflows ever achieved, despite the volatility and uncertainty caused by the Covid-19 pandemic this year. “The industry attracted R23 billion of net inflows in the first quarter of this year, followed by a record breaking R88 billion in the second quarter and then R57 billion in the third quarter, which was the third highest achieved over the past five years.”

Where did the inflows come from?

Intermediaries contributed 36% of new inflows
26% of the inflows in the 12 months to the end of September 2020 came directly from investors
Linked investment services providers (Lisps) generated 21% of sales
Institutional investors like pension and provident funds contributed 17%

It is very heartening to note that intermediaries still managed to contribute the lion’s share, despite very trying conditions since March this year – editor.

Click here to download the ASISA media release that includes more detail on investor trends and offshore focus.

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