The medium equity sector has been a no-man’s land. Many pension funds, for example, will offer members a choice between a high equity fund — which can invest up to 75% in equities — and a low equity fund — investing up to 40% — but not a medium equity fund, which can invest between 40% and 60%.

The medium equity category, at R56bn, is only a tenth of the size of the high equity category and a quarter of the size of the low equity category. There has been R1bn of outflows from the medium equity category over the past 12 months...

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