Smaller asset managers struggling

BIG PLAYERS DOMINATE MULTI-ASSET HIGH EQUITY CATEGORY Bulk of money goes into the 11 biggest funds, despite increase in number of funds.

Over the past four years, the amount of money invested in SA multi-asset high equity funds has doubled from R260.1 billion to R554.2 billion. But, the number of funds in this category has grown from 138 to 222.

This shows the increased appetite local investors have for these funds. More money is flowing into multi-asset high equity unit trusts than any other category.

The bulk of this money is been directed into just a handful of funds. The 11 largest unit trusts in this category have combined assets under management (AUM) of R413.0 billion, or three quarters of the total.

All 11 of these funds have grown substantially over this period: outstripped all the others in rate of growth. It grew its portfolio size by over 400%.

Altogether, these 11 funds more than doubled their AUM in 48 months. Their total growth was R220.6 billion.

What is also interesting is that their share of the total assets invested in this category has stayed consistent. At the end of March 2013, these funds held 74.0% of all the money in multi-asset high equity funds. By March 31 this year, their combined market share had risen marginally to 74.5%.

Put differently, although the number of remaining funds in this category has increased, these smaller funds have been unable to capture a larger share of inflows. On average, they’ve grown much more slowly.