The local collective investment schemes industry reported a 3.2% drop in assets under management for the first quarter of this year as a result of difficult market conditions and subdued net inflows on the back of bruised investor sentiment.
According to industry statistics for the quarter and year ended March 2018, released this week by the Association for Savings and Investment South Africa (Asisa), assets under management in unit trust funds and exchange traded funds dropped to R2.18 trillion over the first quarter of this year from R2.25 trillion at the end of December 2017.
Sunette Mulder, senior policy adviser at Asisa, says not only did the JSE All Share Index report a drop of 6% in the first quarter, contributing to lower assets under management, but the industry attracted quarterly net inflows of only R3 billion for the quarter.
“The collective investments industry last reported net inflows in the single digits in the third quarter of 2014 when net inflows came in at only R2 billion.
“This was the same quarter that marked the start of the African Bank saga, which unnerved investors.