R21bn flows into investment funds despite turmoil

THE local collective investment schemes industry reported net inflows of R21 billion for the second quarter of this year, bringing total net inflows for the 12 months to the end of June to R110bn, reports the Association for Savings and Investment South Africa (Asisa).

Despite healthy net inflows during the second quarter, total assets under management dropped to just below the R3 trillion mark first achieved in the fourth quarter of last year. Assets under management stood at R2.98 trillion at the end of June, compared to R3.09 trillion at the end of March.

Commenting on the industry statistics, Sunette Mulder, senior policy adviser at Asisa, attributed the 3.4% decline in assets under management during the second quarter of this year to extreme stock market volatility.

“The FTSE/JSE All Share Index (Alsi) took a hammering in June, which resulted in an 8% drop for the month. Looking at the quarter, the Alsi was down by 11.69%,” she said. |