Funds in the Association for Savings and Investment SA (Asisa) South Africa interest-bearing short-term category took in total net inflows of R29.3 billion over the past 12 months according to Morningstar.
These flows were, however, highly concentrated. The six largest unit trusts in this sector were the six largest beneficiaries. In total, they took in net inflows of R29.7 billion.
Combined, these six funds account for 74.3% of the assets in this category.
Notably, however, their short-term performance has not been category-leading. Four of the six underperformed the category average over the year to the end of June. None of them are top quintile over this period.
Two of them have underperformed the category average over three years, and two more are only slightly better than average. Only one – the Absa Core Income Fund – is a top quintile performer over 36 months.
In contrast, the six top-performing funds over the past 12 months received net inflows of just R862 million. Two of them saw net outflows.
To see which funds took in the highest net inflows over this period, scroll through the slides.
Note: The PSG Wealth Enhanced Interest Fund converted into the PSG Wealth Enhanced Interest Fund of Funds from December 1, 2020. The inflows reflected for this unit trust are therefore simply the movement from one portfolio into the other.
Patrick Cairns is South Africa Editor at Citywire, which provides insight and information for professional investors globally.
This article was first published on Citywire South Africa here, and republished with permission.