CityPress - - Business - COM­PILED BY NEESA MOOD­LEY

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.

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