Statistics for the quarter and the year to the end of September, released this week by the Association for Savings and Investment South Africa (Asisa), show that the local CIS industry held assets under management of R2.4 trillion, spread across 1592 portfolios.
Just under half of these assets were held in South African multi-asset portfolios (49%), with the rest in South African interest-bearing portfolios (30%), South African equity portfolios (18%) and South African real estate portfolios (3%).
Sunette Mulder, senior policy adviser at Asisa, says for the past three years investors have firmly favoured interest-bearing portfolios over equities, and this trend continued into the third quarter of this year.
According to Mulder, this is not surprising given that interest-bearing short term and interest-bearing money market portfolios have been topping the performance charts for both the one-year and five-year performance periods to the end of September. Over the 10- and 20-year periods, however, South African equity general and South African multi-asset high equity outperformed interest-bearing portfolios.