STEPHEN CRANSTON: Returns are dodgy right now, but the public is still buying into unit trusts
Amid a flight from global funds, conservative investments were the most popular in the second quarter
There have been about rotten investment returns recently, but the public is still investing into SA’s 1,607 unit trusts. There were net flows of R25bn in the second quarter, which was well down on the R53bn in the first quarter but it still took the total for the year to R143bn.
Over the year the popular high-equity unit trust category has given a return of just 3.1% and general equity funds 1.8%. So it is no surprise that investors have flocked to the conservative sectors over the past 12 months. Short-term interest-bearing funds — a rather long-winded name for what used to be called income funds — were the most popular, with R46.4bn net inflow. There was R43.8bn invested into money market funds and a further R38.7bn into multi-asset income funds, which are allowed a limited allocation to equity and property.