Closure of Absa money market fund hurts unit trust sector’s inflows
Asisa data shows unit trust inflows fell to a five-year low in the third quarter after the closure of Absa’s money market fund saw clients cash out
SA’s unit trust industry saw net inflows for the rolling 12-month period to end-September fall to the lowest level in five years, after the closure of Absa’s money market fund earlier in 2021 resulted in clients channelling money away from the sector.
Statistics published by the Association for Savings and Investment SA (Asisa) on Thursday showed that Collective Investment Schemes (CIS) attracted just under R68bn in net inflows for the 12 months to end-September. However, Asisa said that that was the lowest level of total inflows into the sector for any of the corresponding 12-month periods in the preceding five years. That was despite the sector attracting net inflows of R27bn in the third quarter alone...