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Strong CIS inflows – Industry stats show high positive trend

The local Collective Investment Schemes (CIS) industry reported strong net inflows of R52.8 billion in the first quarter of this year, the third highest quarterly net inflows recorded in five years. This is according to statistics released by the Association for Savings and Investment South Africa (ASISA) last week.

“Year-on-year the local CIS industry also delivered steady growth in assets under management. At the end of March 2019 total assets stood at R2.38 trillion, compared to R2.18 trillion at the end of March last year and R2.24 trillion at the end of 2018”, Sunette Mulder, senior policy adviser at ASISA, advised.

Half of these assets are held in SA Multi-Asset portfolios (50%), followed by SA Interest Bearing portfolios (28%), SA Equity portfolios (19%) and SA Real Estate portfolios (3%). At the end of March 2019, South African investors had a choice of 1 599 portfolios.

According to ASISA, the South African Interest Bearing Short Term portfolios attracted the bulk of net inflows (R39.7 billion) in the 12 months to the end of March 2019, while SA Interest-Bearing Money Market portfolios received R32.8 billion and SA Multi-Asset Income portfolios R26.6 billion.

Mulder further stated that 28% of the inflows into the CIS industry in the 12 months to the end of March 2019 came directly from investors. However, this does not mean that these investors acted without advice. “We believe that a number of direct investors pay for advice and then directly implement the choice of portfolio,” comments Mulder.

Intermediaries also contributed 33% of new inflows. Linked investment services providers (Lisps) generated 21% of sales and institutional investors like pension and provident funds contributed 18%.

Click here to download the English version of the ASISA media release.

Click here to download the Afrikaans version of the ASISA media release.

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