CAPE TOWN – The latest statistics from the Association for Savings and Investment South Africa (Asisa) reveal that Coronation has maintained its position on top of the list of local managers in terms of assets under management. The company is now managing almost R3.5 billion more than Allan Gray.
This figure only reflects money in unit trusts and exchange-traded funds, not in any other products managed by the respective companies.
The below table shows the latest ranking of managers by assets held in collective investment schemes:
South Africa’s largest unit trust managers
Manager Number of funds Assets (millions)
Coronation 22 R 221 760
Allan Gray 9 R 218 270
Stanlib 90 R 188 407
Investec 28 R 153 967
Old Mutual 60 R 127 954
Nedgroup Investments 39 R 110 799
Sanlam 86 R 88 252
Prudential 14 R 84 215
Absa 18 R 80 301
Foord 8 R 58 372
Together, these ten managers look after just more than R1.33 trillion, which is 79% of all the money in South African collective investment schemes. The three largest each control more than 10% of the market individually. Coronation’s market share is 13.1%, Allan Gray’s 12.9%, and Stanlib’s 11.1%.
To give some idea of how significant that is, the tenth largest manager, Foord, has a market share of just 3.4%.
However, these positions are far from static. A number of the large managers saw net outflows during the last quarter.
The below table shows the flow of money into and out of funds run by each of the top ten managers in the third quarter of 2014:
Fund flows for South Afria’s largest unit trust managers Q3 2014
Manager Gross sales (millions) Repurchases (millions) Net sales (millions)
Coronation R31 356 R23 213 R8 143
Allan Gray R34 045 R28 928 R5 117
Stanlib R112 932 R131 597 -R18 665
Investec R38 416 R44 455 -R6 093
Old Mutual R14 068 R12 520 R1 547
Nedgroup Investments R53 200 R58 158 -R4 957
Sanlam R11 760 R9 668 R2 091
Prudential R27 854 R26 242 R1 613
Absa R117 234 R129 193 -R11 959
Foord R5 178 R2 223 R2 955
Coronation and Allan Gray sustained their dominance by showing the largest absolute net gains in this group, however in percentage terms Foord showed the most growth. It grew its assets under management by 5.3% over the quarter, whereas Coronation grew by 3.8% and Allan Gray 2.4%.
The managers that saw the highest outflows were Stanlib and Absa. They also saw the highest turnover.
To some extent, the large amounts of money going in and out of Stanlib and Absa funds could be ascribed to these managers running very large money market offerings. As these are shorter-term vehicles, the churn is much higher.
Nevertheless, they both saw significant net outflows over the period. Stanlib’s assets under management dropped by 9.0%, while Absa’s fell by 13.0%.
It’s hard not to suspect that African Bank had a big role to play here. The Absa Money Market Fund and Stanlib Money Market Fund were the two funds most exposed to African Bank paper and this led to a notable decline in confidence.
Although these ten management companies dominate the unit trust market, the largest inflows over the quarter went into funds run by smaller managers. By far the most new money went into the 133 funds managed by Boutique Collective Investments (BCI), most of which are co-branded portfolios run by managers such as Efficient Select, Harvard House and Anchor Capital.
The below table shows those managers that experienced growth in assets under management of over 10% over the quarter:
Fund flows for South African unit trust managers Q3 2014
Manager Assets (millions) Net sales (millions) Growth
BCI R22 823 R14 917 188.70%
Prime R5 196 R748 16.80%
Coris Capital R1 378 R182 15.20%
Rezco R2 340 R288 14.00%
Kagiso R3 662 R356 10.80%
So while they may be growing more quickly than their larger competitors, they are nowhere near competing on the same scale.
Overall, the assets under management in the entire collective investment scheme industry grew by marginally over 1.0% during the quarter.
Article credit: http://www.moneyweb.co.za/mw/content/en/moneyweb-investment-insights/coronation-cements-its-place-ahead-of-allan-gray