Unit trust investments close to R2 trillion
had almost R1.9 trillion invested with the local collective investment scheme industry at the end of December 2015, representing a healthy increase of about R200 billion from the previous year.
Leon Campher, CEO of the Association for Savings and Investment SA, notes that this was achieved in a tough environment marked by economic turmoil, political uncertainty, and local and international market volatility.
He says that while assets under management in the local collective investment scheme industry have almost doubled over the past five years, the industry has witnessed a huge shift in terms of where investors are placing their money.
Campher says South African multiasset portfolios have become the investment vehicle of choice for the majority of investors and their financial advisers over the past five years.
“While at the end of December 2010 almost half of all assets under management were held in South African interest-bearing portfolios, we now have 51% of assets invested in multiasset portfolios,” he says.
Multiasset portfolios make it possible to achieve diversification across asset classes within one fund managed by an expert portfolio manager. The South African multiasset category is made up of the following subcategories: income; low equity; medium equity; high equity; and flexible.
In 2015, investors committed R58 billion to South African multiasset portfolios, with the income subcategory proving the most popular at R17.5 billion, followed by low equity at R16.9 billion.