I read with interest Stephen Cranston’s column on unit trusts as investment vehicles (Unit trusts not perfect, but there are worse in an unstable world, November 17). He might not be aware, but the Association for Savings and Investment SA’s (Asisa’s) published net flow numbers include reinvested distributions. By my analysis of the raw data, reinvested distributions in the year amount to R79bn (retail and institutional funds). This is more than half the reported R138bn net inflow. Asisa says "technically" these could be regarded as unit trust sales, because the investor has the choice to reinvest or take the money out, but in my view reporting flows on a gross basis vastly overstates net savings numbers and masks quite nervous investor behaviour. By my analysis, in the year to September 30 net inflows into retail collective investment scheme funds (excluding institutional funds and reinvested distributions) totalled R47bn, of which: • R7bn was into "white label" (called "third part...
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