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SA’s largest unit trusts

Allan Gray Balanced Fund goes over R100 billion.

CAPE TOWN – The latest statistics from the Association for Savings and Investment South Africa (ASISA) reveal that the Allan Gray Balanced Fund has become the first unit trust in the country to hold assets over R100 billion. The fund surpassed the mark during the third quarter of 2014 to reach assets under management of R101.2 billion.

To put that in context, this single unit trust holds 6.2% of all the money invested in local funds. Even more notable is that it manages 29.6% of all the assets in the multi-asset high equity category, in which there are another 149 funds.

The second largest fund in South Africa, the Coronation Balanced Plus Fund, is also in this category. It manages R68.4 billion.

Together, these two funds hold a fraction under half of all the money invested in multi asset high equity funds, and 23.5% of all the assets in all South African multi asset categories combined.

The below table lists the ten largest funds in South Africa.

 

South Afria’s largest unit trusts

Fund

Assets under management at 30 June 2014

Assets under management at 30 Sept 2014

Allan Gray Balanced Fund

R97.0 billion

R101.2 billion

Coronation Balanced Plus Fund

R64.2 billion

R68.4 billion

Absa Money Market Fund

R52.3 billion

R42.6 billion

Allan Gray Equity Fund

R41.4 billion

R40.6 billion

Foord Balanced Fund

R38.2 billion

R40.4 billion

Allan Gray Stable Fund

R36.9 billion

R37.8 billion

Investec Opportunity Fund

R37.8 billion

R37.3 billion

Coronation Balanced Defensive Fund

R33.8 billion

R35.9 billion

Stanlib Money Market Fund

R38.8 billion

R30.8 billion

Nedgroup Investments Stable Fund

R29.1 billion

R29.9 billion

Source: ASISA

 

These ten funds manage a combined total of R464.8 billion, which is 28.6% of all the money in South African collective investment schemes. That leaves less than three quarters of the market for the other 1 110 funds

Although the Absa Money Market Fund has held onto its position at number three on the list, it has seen huge outflows in the second half of this year. So too has the Stanlib Money Market Fund, which has fallen from fifth to ninth.

These two funds were the most exposed to African Bank debt, and the 10% ‘haircut’ that investors had to take on these paper may well have caused some loss of confidence in these managers.

There has however also been a steady decline in the popularity of domestic money market funds over the last five years. At the end of September 2009, 53% of all the money in South African collective investment schemes was in interest-bearing products, with 33% specifically in money market funds.

At the end of September this year, fixed income funds made up only 25% of the market, and money market funds just 16%.

There has been a noticeable decline even over the last 18 months. When Moneyweb conducted a similar ranking at the end of March last year, four of the ten biggest funds were money market products.

The funds that have come to dominate the local industry in their stead are those in the multi asset categories. In September 2009, these funds held just 22% of all assets under management in domestic funds, but that has climbed to 49%.

It is therefore not surprising that seven of the ten largest funds in South Africa are now multi asset unit trusts. This is up from just four 18 months ago.

The Allan Gray Equity Fund maintains its position as the only pure equity fund on the list. Despite a small decline in its assets under management, it is still nearly twice as big as the second fund in this category. That is the Coronation Top 20 Fund at R22.0 billion.

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