• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Backers ditch cash for equities

Oct 28 2009 11:34

Related Articles

Foreign unit trusts 'misleading'

Index trackers vs managed funds

Avoid 'reckless conservatism'

 

Johannesburg - Investors started abandoning money market unit trust funds during the third quarter of this year in favour of other unit trusts providing some equity exposure.

As a result local money market unit trusts experienced net outflows of R5.8bn for the quarter, the highest in five years.

In the five year period ended this September there were only three other quarters during which money market unit trusts posted net outflows.

Quarterly statistics released this week by the Association for Savings and Investment South Africa (Asisa) for the local collective investment schemes industry showed that investors are finally ready to trade the perceived safety of cash for the potentially higher returns of equities.

But unfortunately, said Leon Campher, CEO of Asisa, most individual investors missed out on much of the strong recovery experienced by equities in recent months.

While institutional investors were moving back into equities during the second quarter of this year already, individual investors were still placing the bulk of their money with money market unit trust funds.

Campher said as a result most individual investors did not participate in the 37.5% growth achieved by the All Share Index (Alsi) from its lows in early March this year to the end of September.

In Rand terms, compared to the SP500 and the FTSE100, the Alsi was the best performing index for the past 12 months ended September this year, with a return of 4.51%.

Campher said the local collective investment scheme industry attracted net flows of R99bn over the 12 months to the end of September this year, bringing total assets under management to R747bn.

- I-Net Bridge.com

NEXT ON FIN24X

Money creation made easy

2014-04-23 07:11

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Nkandla: Zuma 'still looking for undue benefit'

President Jacob Zuma has told supporters at an election rally in Mpumalanga that he had not wrongfully benefited from the upgrade to his Nkandla home.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...