Investor Presentaiton slide image

Investor Presentaiton

Evolution of Investor Base Holdings of domestic government bonds 100 12 10.2 8.1 8 5.8 7.7 8.2 90 13.2 21.1 9.4 8.4 13.7 14.1 11.6 8.6 80 13 12.4 13.9 17 10 14.6 70 16.3 16.3 18 17.7 Per cent 40 50 80 18.3 14 10.4 8.6 12.8 37.1 13.8 21.8 29.1 35.9 36.4 99 39.9 36.5 33 29.8 29.2 31.8 30 44.8 46.4 43.9 20 10 0 2006 2007 2008 2009 2010 2011 2012 2013 Oct-14 ■Pension funds ■Foreign investors Monetary institutions Insurers Other financial institutions Other Source: Share Transactions Totally Electronic Ltd. ("Strate") Non-resident holdings have increased significantly since the 2008 crisis and remain resilient Low interest rates in advanced countries has made emerging market (EM) assets more attractive to foreign flows. The 2013 EM capital outflows due to US QE tapering did not have a big impact on SA not much outflows however, there were no new inflows. Local pension funds' holdings has declined from 43.9% in 2008 to 31% in 2014 Private pension fund holdings have remained constant While government pension fund holdings has decreased (PIC diversified investment strategy into other asset classes) EM outflows in January 2014 - non-resident investors were net sellers of R22.4 billion in government bonds, and their overall holding dipped to 35.7 per cent of these bonds national treasury Department: National Treasury REPUBLIC OF SOUTH AFRICA
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