At the end of 2022, the Collective Investment Schemes (CIS) industry’s assets under management ended on the same levels as the previous year, just above the R3 trillion mark. There were similarities noted in the CIS industry asset movements and the JSE All Share Index, in that the year-end results for 2021 are comparable to the results at the end of 2022.
During 2022, the CIS industry recorded a net inflow of R108 billion, ending the year with R3.14 trillion in assets under management. As per ASISA’s (Association for Saving and Investment South Africa) media release, the ability to reach an above R3 trillion mark was an achievement considering the current prevailing economic conditions.
A review of 2022 investor trends shows that South African Multi Asset Portfolios attracted R59 billion of the R108 billion total net inflows and is the highest net inflow reached in these portfolios since 2016/17. Interestingly, the investment spread was equal for South African Multi Asset Income portfolios with a net flow income of 24.5 billion and South African Multi Asset High Equity portfolios with a net flow income of R21 billion. The South African Interest Bearing Variable Term portfolios were also favoured as an investment choice, attracting a net flow income of R24.1 billion.
The portfolios that recorded the highest net outflows in 2022 were the South African Interest Bearing Short Term sector, where R8 billion in assets under management were lost. In addition, South African Equity categories that focus on niche markets and the South African Real Estate General sector were also impacted by net outflows as a result of the extreme volatility of the 2022 market.
There was a slight drop in the assets under management of locally registered foreign portfolios compared to the previous year, from R698 billion at the end of 2021 to R694 billion at the end of 2022.
As of the end of September 2022, there were 136 643 CIS portfolios globally. In terms of South African portfolios in 2022, there were 1 767 local CIS portfolios, 59 more than in 2021.