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Saturday, September 1, 2007
Mostly equity

Retail investors stepped up investing in offshore funds in the June quarter with inflows more than doubling to R1,8 billion (R719m). This was against a background where total industry foreign fund flows for the quarter were a negative R3 billion (R2,1 billion inflow).
Most of the retail investment went to equity funds with inflows of R1,9 billion as against a R834 million inflow in the previous quarter.
ACI chief executive Di Turpin says with the JSE at near record levels some retail investors took the opportunity to diversify offshore. “We saw a similar trend in the June quarter among the local rand denominated offshore funds where R2,3 billion flowed into world wide and foreign funds. Clearly investors are taking a keen interest in diversifying offshore both in rand based and foreign currency funds.
“Diversifying a portfolio lowers the market risk and can provide other investment opportunities not available locally. Investors have 359 FSB registered foreign funds from which to choose with total assets of R104,4 billion. Of that some R44,4 billion are retail investments.”
There were net institutional outflows of R3,8 billion (R1,5 billion inflow) from equity funds during the June quarter. This was mainly due to disinvestment from a single equity fund. In the fixed interest sector there was a R930m outflow – R743m from institutions and R188m retail.

Copyright © Insurance Times and Investments® Vol:20.8 1st September, 2007
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