Picture: THINKSTOCK
Picture: THINKSTOCK

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UNIT trusts attracted the second-highest net inflows on record in the third quarter of 2013, the Association for Savings and Investment South Africa (Asisa) said on Tuesday.

The collective investment schemes industry had assets under management of R1.43-trillion at the end of September.

The industry attracted net inflows of R57bn during the third quarter — the second-highest net inflows to date, after the record R63bn achieved in the third quarter of last year, Asisa CEO Leon Campher said.

The bulk of the inflows in the 12 months to end-September 2013 came directly from investors, at 28%, and intermediaries, at 27%.

Linked investment services providers generated 24% of sales and 21% of sales came from institutional investors such as pension and provident funds.

Locally registered foreign funds held assets under management of R196bn at the end of September 2013, compared with R180bn at the end of June 2013.

The most popular unit trust investment is the South African multi-asset category, which attracted net inflows of R35bn during the third quarter of this year and R110bn over the 12 months to end-September.

Multi-asset fund managers compile their portfolios from a mix of equities, bonds, cash and property.

Mr Campher said this was attractive to the average investor who wanted to diversify holdings across asset classes.

"For me the good news is that investors are no longer chasing returns by investing all their money in specialist funds as they did a few years ago," he said.

"If they have to opt for the flavour of the day, at least they are now doing it within a fund range that is diversified and where the asset mix is managed by expert fund managers."

Asisa represents most of South Africa’s asset managers, collective investment scheme management companies, linked investment service providers, multi-managers and life assurers. Among them they hold assets under management of more than R4-trillion.