THE industrial fund sector, with R8bn, is one of the smaller in the SA unit trust industry, with R350m of net inflows over the past year.There has been only one new fund in the sector in recent years — the Satrix industrial index tracker. But the sector is larger than the resources and financial sectors combined.Most of these started life in the theme fund craze of the late 1990s as consumer funds. But a lack of choice, disputes about definitions and the lack of a credible consumer industry index led them to migrate to industrial funds.To confuse everyone, there is a subset of the industrial sector called industrials, but the industrial funds tend to be underweight. These include the out-of-favour construction shares, none of which has a market cap above R10.5bn. In fact, the only heavyweight shares in the industrial subsector are Bidvest (R51bn), Barloworld and KAP (both about R18bn).But the real action is in the consumer discretionary and consumer staples sectors. The attraction o...
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