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Collective Investments
Friday, December 1, 2006
September 2006 quarter

Collective Investments recorded their best ever inflows in the September 2006 quarter of R19,8 billion with both retail and institutional funds having exceptionally heavy flows.
The record quarterly net inflow was slightly less than the R22,3 billion in the preceding six months and boosted total assets managed by the industry to a record R496 billion.
“Judging from these inflows investors are bullish on the outlook and don’t seem overly concerned about the short term prospect of rising interest rates,” comments Di Turpin Association of Collective Investments chief executive.
“This is reflected in stepped up investments by both retail and institutional investors during the past quarter. Investors seem unperturbed by stockmarket movements probably due to their ongoing selection of lower risk and fixed interest investments.”
Retail inflows rose from R11,9 billion to R13,3 billion while institutional flows were R6,5 billion after a negative R7 billion the previous quarter.
Domestic funds continued to be the most popular with inflows of R19,4 billion (R4,1 billion), while Foreign fund inflows were R482m (R824m) and Worldwide funds R5m (R49m). Bonds had inflows of R855m after a negative R7,8 billion the previous quarter.
Asset allocation funds continue to be popular pulling in 28% of all flows. This is probably due to increased interest in collective investment solutions for retirement funding with more funds being selected as underlying vehicles in Retirement Annuities in recent years.
The income and money market funds also continued to be popular with the latter representing an astonishing 69 percent of new business. Although equity funds remain out of favour, the value and smaller companies funds were most popular, after rewarding performance in these sectors.
The number of funds increased to 707 funds (679) during the quarter.

Copyright © Insurance Times and Investments® Vol:19.6 1st December, 2006
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