Business

Moderna CEO will sell stock options, donate to charity

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(Bloomberg) - Moderna Inc. Chief executive officer Stephen Bansell said Tuesday he plans to sell some of his stock options and donate the money. He warned investors not to speculate about his motivation.

Bansel plans to practice and sell 4.59 million alternatives at a rate of 80,000 per week - a process that will be completed by June 2023. He said in a blog post that he once wanted to avoid a significant number of shares in the market, which could hurt Moderna's share price. He expects all post-tax earnings to contribute to charity, which he estimates is about $ 355 million, with the stock trading at about $ 140 per share.

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According to the blog post, the CEO's family is investing proceeds from stock sales in closely held healthcare and climate companies. The family investment entity sells 10,000 shares per week under a plan that runs until the end of this year.

Moderna, one of the makers of the mRNA vaccine that has helped greatly reduce the global impact of Covid-19, increased its stock during the epidemic but recently reduced those gains. As shares soared to nearly 500 in August, concerns over the speed of government vaccine orders and future revenue flows have dampened enthusiasm on Wall Street.

"In the coming months, there may be anonymous comments about my motivation for these sales, but I wanted to share this news now and clarify our plans," Bansel said in a blog post. "I believe the best days of modern are ahead."

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Shares of Cambridge, Massachusetts-based company fell 7.2% to 7 127.70 in New York at 11:12 a.m.

According to the Bloomberg Billionaires Index, Bansel's net worth is over $ 4 billion. On the blog, he said he wanted to use his personal resources to "improve the world." Speaking at a panel on climate change at the World Economic Forum in Davos, Switzerland, on Monday, he advocated being a vegetarian and saying he did not own a car.

He told reporters at an event in Boston on April 4 that he was an investor in the Commonwealth Fusion System, a local startup whose goal is to develop nuclear fusion power. As of Dec. 1, the company had raised $ 2.06 billion, according to data from PitchBook.

"Fusion is crazy, but if it works, it will change the energy equation," Bansell said last month. He said at the time that he was also investing in geothermal energy.

A spokesman for Commonwealth Fusion Systems declined to comment further on Bansel's investment.

© 2022 Bloomberg LP

Bloomberg.com

Business

US new home sales hit two-year low; Price increase

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WASHINGTON - Sales of new U.S. single-family homes fell to a two-year low in April as high mortgage rates and rising prices put pressure on first-time buyers and those looking for entry-level property outside the housing market.

New home sales fell 16.6% last month to a seasonally consistent annual rate of 591,000 units last month, the lowest level since April 2020, the Commerce Department said Tuesday. March sales momentum improved to 769,000 units from 703,000 units previously reported.

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Sales have now fallen for four consecutive months. New home sales fell 5.9% in the Northeast and 15.1% in the Midwest. They declined 19.8% in the densely populated south and 13.8% in the midwest.

Economists surveyed by Reuters predicted that new home sales, which accounted for a small portion of U.S. home sales, would drop to 750,000 units. April sales fell 26.9% year-on-year. They peaked at 993,000 units in January 2021, the highest level since the end of 2006.

The real estate market is a part of the economy that is most sensitive to interest rates, and new home sales are a major indicator for this sector because they are calculated when signing a contract.

The 30-year fixed-rate mortgage jumped above 5% in April for the first time since February 2011, according to mortgage finance firm Freddie Mac. It rose an average of 5.25% in the week ended May 19 as the Federal Reserve raised interest rates to reduce domestic demand and reduce high inflation.

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Last week's data showed that previously owned home sales fell to a two-year low in April, when single-family building permits were at their lowest since last October. The confidence of single-family homeowners was closer to a two-year low in May.

Despite signs that housing demand is declining, a record shortage of homes will likely limit sales declines. Restraining sales profits can increase supply and slow double-digit price growth.

The average new home price in April rose 19.6% to $ 450,600 from a year earlier. Almost all homes sold last month were above the 200,000 price level. There were 444,000 new homes on the market at the end of April, up from 410,000 units in March. Homes under construction make up about 65% of the property, while 27% of the houses have not yet been built

Home backlogs that have been approved for construction but not yet started are at an all-time high as builders are struggling with shortage and high prices for wood-like inputs for framing, as well as cabinets, garage doors, countertops and appliances.

It will take 9.0 months to clear home supplies in the market at the pace of April sales, up from 6.9 months in March.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao)

Business

Sterling slides after soft PMI data sent a UK recession warning

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LONDON - The British pound fell to its lowest level in a week against the euro as data added to concerns that the UK could plunge into a recession later this year after showing a sharp decline in business activity.

S&P Global's Flash Composite Purchasing Managers Index (PMI), a monthly measurement services and manufacturing industry, fell to 57.8 in April from 51.6 in May, its lowest level since February last year.

The initial reading was worse than all the forecasts in the Reuters economists' survey, which pointed to a drop to 57.0.

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"This sudden decline in growth prospects will be a major concern for the Bank of England and will certainly call for further rate hikes," said Richard Perry, financial market analyst at Infinix.

"This reinforces our expectation that one or at most, two 25bps increases will be possible before the BoE's tough stance is reassessed."

The money market is currently fully priced at 25 basis points at the BoE's June policy meeting and has risen 114 basis points by the end of the year, down from around 125 basis points after strong retail sales data on Friday.

At 1420 GMT, the pound was down 1.0% against the euro at 85.80 pence, after touching its weakest level against the single currency since May 12.

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The dollar fell 0.6% to 25 1.2522 after falling 0.8% below $ 1.2500 before Sterling.

In the bond market, the yield of the British gilt has fallen sharply as investors have re-evaluated the rate outlook following the data.

Rate-sensitive two-year government bond yields fell more than 15 basis points to 1.418%, the sharpest fall since March 1. The 10-year yield fell 11.5 basis points to 1.856%.

The head of the European Central Bank, Christine Lagarde, said on Tuesday that she had seen the ECB's deposit rate zero or "slightly above" by the end of September, after the pound had already fallen against the euro after indicating an increase of at least 50 basis points from current levels.

"The bounce on the EUR / GBP is responsible for the broader progress in the euro over the last two days following comments from the ECB about the near-term prospect of a rate hike from Lagarde," said Jans Naervig Pedersen, chief analyst at Danske Bank.

"We can see the EUR / GBP rising around 0.86 in the short term, as relative monetary policy will continue for the euro," Pedersen added.

Meanwhile, British public lending fell to 144.6 billion pounds ($ 180.88 billion) or 6.1% of GDP in 2021/22 fiscal year, figures from the UK's Office for National Statistics showed on Tuesday, falling more than 7 7 billion from the initial ONS estimate. Last month. (1 = 7 0.7994)

(Reporting by Samuel Indic; Editing by Kirsten Donovan, John Boyle and Susan Fenton)

Business

Ukraine is looking for ways to get its grain out

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KYIV - Ukraine is seeking a way out of the country's grain and vegetable oil by breaking a month-long blockade of the Azov Sea and the Black Sea by the Russian navy and moving further by land.

The war, coupled with Western sanctions against Russia, has pushed up the price of grain, cooking oil, fertilizer and energy.

This in turn threatens a global food crisis as many countries depend on Russia and Ukraine for more than half of their wheat imports, including some of the poorest.

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Russia and Ukraine together account for about one-third of the global wheat supply, and their importance has been underscored by Indian export bans and unfavorable crop weather in North America and Western Europe.

Ukraine is also a major exporter of corn, barley, sunflower oil and rapeseed oil, while Russia and Belarus - which have supported Moscow in the war and are under sanctions - account for more than 40% of the world's potash export.

How many grains are stuck in Ukraine?

Grain is one of Ukraine's major industries, accounting for 21 12.2 billion in total exports in 2021 and about one-fifth of the country's exports.

Before the war, Ukraine exported 98% of its cereals and oilseeds through the Black Sea, up to 6 million tons per month. Typically, a fraction of its exports go by rail, where transportation costs are higher.

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But the country is currently exporting only 1-1.5 million tonnes a month due to blockade of ports and inability of the railway system to cope with the excess.

U.S. Secretary of State Anthony Blinken last week accused Russia of using food as a weapon in Ukraine, by providing "hostages" to millions of people around the world, not just Ukrainians. The Kremlin says the West has started the crisis by imposing sanctions on Moscow.

According to a UN food agency official, about 25 million tonnes of grain were stuck in Ukraine in early May due to infrastructural challenges and blockades. As prices rise, UN agencies are having to halve food rations for refugees and displaced people in some parts of the Sahel, for example, due to the huge shortage of funds.

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Why can't the grain land out of Ukraine?

Exporting by train is a challenge because the Ukrainian rail system operates at a different gauge to European neighbors like Poland, so the grain has to be transferred to different trains at the border where there are not many transfers or storage facilities.

Kyiv has also stepped up efforts to send ships via the Romanian Black Sea port Constantar. By mid-May, however, about 240,000 tons of grain - or 1% of the amount stuck in Ukraine - had passed through, its manager Florin Goidia told Reuters.

Grain rerouting in Romania involves loading cargo on barges for transportation to the port of Danube by rail and travel to Constantinople - making the process complicated and expensive.

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What other options are being discussed?

Western powers are discussing the idea of ​​establishing a "safe corridor" to allow shipments of grain from Ukrainian ports.

However, officials have warned that such a corridor would not be possible without Russia's consent.

Ukraine says it needs "security assurances", Deputy Economy Minister Taras Kachka told Reuters last week that "having third-country ships in the area ... would be an ideal situation."

Russia's foreign ministry said in a statement that it would consider lifting sanctions against Russia if it were to consider a UN request for access to Ukraine's Black Sea ports, Interfax news agency reported.

Making things more difficult is the flow of mines into the Black Sea, with each side blaming the other for planting.

The cost of insurance for any ship passing through these shipping lanes will probably be very high.

The situation has become even more urgent due to the lack of storage space in Ukraine, where the next crop will be harvested from July.

According to the research center APK-Inform, up to 35% of Ukraine's total storage capacity of 61 million tons can still be used by the old 2021 crop when new crops arrive.

(Additional report by Gus Tropez in Paris; by Sylvia Alois; edited by Jason Neely)

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Business

Parker Gallant: Why do we subsidize Michigan when its governor tries to stop it?

What does Ontario get from Michigan in exchange for its energy subsidy generosity?

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Saturday, May 7, the day before Mother's Day, was a typical spring day in most parts of Ontario, light but windy. Ontario's highest electricity demand occurred between 7 and 8 pm, reaching 14,439 megawatts (MW). This whole demand could be supplied by Atomic and Hydro, which in the next hour generated 14,353 MWh (MWh), clearly proving that wind production was unnecessary because Hydro could easily generate an additional 96 MW.

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On the same day, however, the province's Independent Electricity System Operator (IESO) received 26,259 MWh of wind production and about 36,200 MWh - or refused to accept - or refused to accept. The agreement gives these industrial wind turbine (IWT) companies their "first-to-the-grid" rights and pays them 135 per MWh. If their generation is not redundant or can overload the grid, IESO has the authority to reduce it, but for every MWh it pays producers $ 120 per MWh. The agreed price occurred when the McGinty-led Ontario Liberal Party was in power and passed the GEA (Green Energy Act), which was amended in September 2011 to allow for reduction by the IESO.

The IWT generation adopted and reduced by IESO on May 7 was equal to the total MWh IESO sold in neighboring export markets, including 34,500 MW in Michigan alone. Buyers of that surplus generation got a big deal, because the average market price of the day (Hourly Ontario Energy Price) or HOEP was 0.50 cents / MWh, which means 62 31,000 peddling from 62,300 MW of export revenue!

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The difference between what Ontario bidders have paid for this export energy and what Michigan, New York and Quebec have paid (for using an electric word) is nothing short of staggering. Contract IWT owners in Ontario received about $ 7.9 million for the recognized and reduced generation, which works out to $ 299.97 / MWh for each unnecessary MWh supplied to the grid. The main buyer of surplus was Michigan, which relied on coal for 28 percent of its production and other fossil fuels for another 37 percent and so it benefited admirably from any clean energy. If the IESO surplus reveals both the hydro spillage costs caused by IWT production and the cost of idle gas plants to back up IWT, which are unreliable, the May 7 wind power costs would be significantly higher than $ 299.97 / MWh.

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The IESO's "Annual Imports and Exports by Destination" shows that over the past 10 years, Ontario has supplied Michigan with about 10 percent of its annual electricity demand (based on Michigan's energy profile). The electricity we supplied was at a price that would make Ontario's greenhouses (Ahem) green with violence. On average, we exported about 1,000 megawatts of our "non-emitting" electricity per hour, thus helping our U.S. neighbors save money and reduce their emissions. We are already plagued by a carbon tax imposed by the Trudeau government in Ontario.

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Working through the 2020 issue, I estimate that Michigan paid about $ 137 million for electricity exports which cost Ontarians a little over $ 1 billion. For more than 10 years, Ontario's total energy subsidies in Michigan have been in the 10 billion range, pushing the neighborhood to the extreme.

What does Ontario get from Michigan in return for this generosity? Its governor, Gretchen Whitmer, is committed to closing the Line 5 pipeline that carries light crude oil and natural gas liquids south of Michigan through a tunnel that joins the Mackinac Straits Lake Michigan and Huron and then east to Sarnia. If he gets his way, Michigan, Ohio, Pennsylvania, Ontario and Quebec will experience a 14.7-million-US-gallon-daily supply shortage of gas, diesel, jet fuel and propane.

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Does it remind you of the current geopolitical paradox? By buying oil and gas from Russia, Europe is financing Vladimir Putin's war against Ukraine, and Europe is financing the same war. The parallel is not correct and Governor Whitmer is not Putin, but Ontario rate-takers who know what's going on must be wondering why they're paying for Michigan's electricity subsidy while Michigan's governor is trying to cut off a good chunk of energy. They depend on flow to keep warm in winter.

The same hardliners are wondering why the Ford and Trudeau governments, which seem to be working together on so many projects these days, did not tell Governor Whitmer that they would instruct the IESO to stop Michigan shipping if Line 5 was scrapped. Clean and cheap Ontario electricity, which will increase its emissions and electricity costs.

Parker Galant is a retired Canadian banker who blogs at Parker Galant Energy Perspectives.

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Business

Saudi Arabia says it has done everything possible for the global oil market

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(Bloomberg) - Sign up for our Middle East newsletter and follow our @Middlelist for news from the region.

Saudi Arabia's foreign minister says the state has nothing more to do with controlling the oil market, signaling that the world's largest crude exporter has no plans to gradually increase production.

Speaking at a panel of the World Economic Forum in Davos, Switzerland, Prince Faisal bin Farhan said: "The market is strong enough. “We need to make sure that when we transform into a renewable future, there is enough energy in the market. The state has done what it can. "

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Prince Faisal was responding to a question about what the United States, which has pressured Saudi Arabia and other OPEC + members to pump up quickly, could offer Riyadh in exchange for more crude oil. His remarks echoed those of Saudi Energy Minister Abdul Aziz bin Salman, who said in an interview earlier this month that a refining crisis was to blame for rising fuel prices.

"It's much more complicated than bringing a barrel to market," said Prince Faisal. "Our assessment is that the oil supply is relatively balanced at the moment."

Oil prices rose nearly 70% last year to about 5 115 a barrel, first recovering from a coronavirus epidemic and then after Russia invaded Ukraine.

© 2022 Bloomberg LP

Bloomberg.com

Business

There is a better strategy here for investors than trying to catch a falling knife

Martin Pelletier: We have not yet seen the surrender across the board of previous errors

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It was amazing to see the daily market swings, but it turns out that many are still trying to give the market time to buy a selloff, a strategy that is like catching a falling knife, as the S&P 500 has sold more than 18 cents per share since January.

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For those wondering if we've finally hit the rock bottom, keep in mind that the corrections can vary significantly from a few months to a few years, with the average S&P 500 peak-to-true drawdown during the Second to Middle Recessions was 24 percent world war, Goldman Sachs Global Investment According to research.

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That said, there are some big outlaws, including 48-percent revisions in 1973, 49 percent in 2001 and 57 percent in 2008.

For some additional perspectives, the S&P 500 has declined just five percent in the last 12 months and is trading at the same level as in March 2021. We still haven't seen the capitulation across the board seen in the previous meltdown. According to City strategists quoted by Bloomberg, less than 30 percent of the S&P 500's components have reached a one-year low, compared to 50 percent in 2018 and 82 percent in 2008 during the global financial crisis.

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How long will this sale last? Markets could recover quickly during the Covid-19 revision in 2020, or years, as it did in 1929 to 1932, 1973 to 1974, 2000 to 2002, and 2007 to 2009.

We think this seems a bit different, as both stocks and bonds are revising and since the 2008 financial crisis the central bankers and their very favorable policies have made investors very comfortable and overweight for period exposure.

But persistent inflation is forcing central bankers to inadvertently raise interest rates, affecting stocks and bonds that are sensitive to high rates, such as long-term government and corporate bonds, as well as certain stocks in the technology sector.

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Looking ahead, we are concerned that this monstrous trade-off, as it was during the 2000 technology bubble, continues to have the potential to launch the next low-investment commodity cycle, as it does today.

Then, according to research by Marathon Research Advisors, the tech sector grew by about 1,582 percent, dwarfing the 161 percent profit of top product stocks from 1990 to 2000, but lost 59 percent in the following decade while commodity stocks rose 253 percent.

Today, counting fast-forward and marathon, tech stocks have risen 582 percent since 2009, while commodity stocks have fallen 34 percent.

One of our favorite product fund managers, French businessman Pierre Andurand, got some interesting insights on the subject via Twitter.

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This does not mean that great technology companies are out of business. Away from it. But that may mean they are not good stocks. Take Cisco Systems Inc., an outstanding company that traded over US $ 77 in March 2000, dropped to US $ 10.50 in September 2002 and is slowly recovering around US $ 42 today.

This is an extreme example, but it is one that nevertheless focuses on the risk of making concentrated bets in any one sector. It has paid off well over the past decade or so, resulting in higher performance for managers who weigh more than the tech-heavy S&P 500, but inflation is likely to be the catalyst to rebalance the market in other traditional sectors such as commodity stocks.

Instead of holding a double and falling knife, investors may want to take a different, more balanced approach, just in case the correction in long-term stocks continues as in the past.

Martin Pelletier, a senior portfolio manager at CFA, Wellington-Altas Private Council Inc., who serves as Trivest Wealth Council . Planning.

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Business

Thungela is dealing with a splash of toxic coal following a government order

Thungela Resources is working to offset the effects of a toxic spill from an old coal mine in the eastern African province of Mpumalanga in February, CEO Julio Endlovu said.

Documents released by a shareholder activist organization on Tuesday show that a coal spinoff from Thungela-Anglo-American PLC has been ordered to repair environmental damage or take legal action. Thungela fell 11% in Johannesburg.

In February, the company said the spill from a site it worked on more than 50 years ago, followed by a concrete seal failure. Farmers in the area have not been able to irrigate their crops and thousands of fish have died in the spill, according to the Bild newspaper, which first reported the incident.

At the company's annual general meeting on Tuesday, the CEO said Thungela was aware of a criminal investigation report but had not been charged. The company was instructed by South Africa's Department of Water and Sanitation to rectify the situation and said it could face legal action if it failed to do so in a directive issued on 21 February.

"The fish kills observed at Wilgerivier, along with Wilgerivier Lodge and Meulstroom Lodge, may be due to contamination of water resources," the department said in the directive, which was obtained by Just Share NPC through the Access to Information Promotion Act. "Legal action may be taken against you if you fail or inadequately comply with these guidelines."

Thungela traded down 4.9% at R248.95 in Johannesburg until 1:56 pm. South Africa's largest ship of thermal coal has grown nearly 10 times since the spin-off from Anglo-American last June.

According to documents obtained by Just Share, the failure of the concrete seal was due to vandalism.

© 2022 Bloomberg

Business

The RVDA Convention / Expo offers the opportunity to connect with the top RVs in North America

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Media

FAIRFAX, Va. - RVDA, the National RV Dealers Association, has released exhibit information for companies interested in participating in the 2022 RV Dealers Convention / Expo Live event at Caesar's Palace, Las Vegas, November 7-11, 2022.

Potential vendors can reserve exhibition space for live events, including virtual booth spaces that will be online until January 31, 2023. United States and Canada. For more information about the exhibition, visit the Convention / Expo website here. To view the event exhibitor prospectus, click here.

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In addition to the week-long promotional and networking opportunities available at Caesars Palace, the Virtual Booth component provides an affordable way for exhibitors to digitally communicate with RV dealers. The flexible design includes video, email, appointment scheduling and live chat and offers brochures and other promotional materials for direct download. Displaying companies will be searchable by company name, product / service category and keywords.

Vendors can also host popular Live and Virtual Vendor Training + Plus (VTP) sessions. VTP sessions allow companies to present their own content and provide participants with in-depth product or service information, educational demos or case studies for an additional charge.

Analytics available through virtual platforms can help increase a company's lead database, easily follow up with individuals through appointments, monitor booth activity, and track visitor information beyond scheduled expo times. To access the display prospectus, click here.

Additional sponsorships and partnerships for the event are available for companies that want to connect with dealers and showcase their brand. Contact Julie Newhouse at [email protected] for more information.

Presented by RV Dealer Convention / Expo RVDA, RVDA Canada and Mike Molino RV Learning Center. Follow the convention on social media using #RVDAConEx and go to www.rvda.org/convention to register and get regular updates.

See the source version at businesswire.com: https://www.businesswire.com/news/home/20220524005066/en/

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The assets of the SA joint venture project are above the R3trn threshold

The Association for Savings and Investment South Africa (ASISA) on Tuesday confirmed that assets managed by the Joint Investment Scheme (CIS) are above the R3 trillion mark by the end of March 2022, R3.09 trillion.

This is despite the volatility in the stock market at the beginning of the year.

Nevertheless, the assets managed by such schemes have declined slightly from R3.14 trillion by the end of December 2021.

Sunette Mulder, Asisa’s senior policy adviser, said the closure of the Absa Money Market Fund in June 2021 distorted CIS flow figures for the 12-month period ending March 2022, as well as the second quarter of last year.

Read: Absa Money Market Closes Funds

Absa has confirmed the closure of its R80 billion Money Market Unit Trust Fund on April 7, 2021. Clients were given until July 1, 2021 to transfer their money to the alternative market.

Mulder noted that if there were no outflows from ABSA funds, the industry's net inflows for the year would have exceeded R100 billion.

Assisa said most CIS portfolio divisions have provided average returns that have surpassed inflation in the five-, 10- and 20-year terms from March 2022.

According to a statement released on Tuesday, the local CIS industry reported R28.1 billion net inflows in the first three months of 2022, bringing the total net inflows to R70.7 billion for the year ending March 2022.

The association says R55.4 billion out of R70.7 billion has been collected from South Africa's multi-asset portfolios, the highest ever achieved by these portfolios since 2016/17.

According to Mulder, the figures show that many investors have shifted their money to the portfolio with a higher equity exposure, expecting more participation in last year's market growth.

Multi-asset portfolio

He noted the growing popularity of the multi-asset portfolio. “For several years, local unit trust investors and their financial advisers have been investing almost exclusively in the South African multi-asset portfolio. However, the appetite for the sector has waned in recent years and SA interest bearing portfolios have attracted net inflows. "

“SA multi-asset high equity portfolios were the most popular among investors during this period, attracting around R24 billion net flow. In the 12 months since the end of March last year, these portfolios had a combined net outflow of R10.5 billion, ”Asisa added.

Mulder said 24% of the inflows into the CIS industry came directly from investors, with intermediaries contributing 33% to new inflows, integrated investment service providers contributing 27%, sales and institutional investors, including pension and provident funds, contributing 16%.

According to Mulder, South Africa's equity portfolios are also gaining popularity among investors, attracting R11.7 billion net flows.

Asisa said locally registered foreign portfolios held assets under R633 billion, which recorded a net inflow of R13.4 billion in the last quarter of March 2022, bringing the total net flow for the year to R17.9 billion.

Currently, there are 609 forex-guided portfolios for sale in South Africa.

Nandumiso Lehutso is a moneyweb intern.