GLOBAL EQUITY FUNDS: Plenty of rand-based quality
Rand-based funds are much more practical for most investors
The global equity sector recently celebrated reaching the landmark of R100bn under management. It might seem small compared with the R358bn in domestic equity. But another way of looking at it is that 60% of the assets held in global funds are in the equity sector, compared with 20% of domestic funds’ assets. There certainly hasn’t been much to recommend investing in foreign fixed income, which has just 1% of the global sector. Nor have multi-asset funds quite had the success they have had domestically, accounting for 35% of global assets and 51% of domestic. There has been renewed interest in global funds, perversely, since the recent decline in the rand. The currency has a little less buying power than it did in the first quarter, though admittedly still more than 12 months ago. But if there is some panic buying it is likely to be in the fully externalised foreign collective investment schemes. When you sell a rand-denominated fund you end up with a pile of rands, making it hard t...
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