South Africa
•
Revenue increased substantially over the prior period, assisted by higher trading volumes.
Funds under management as at
31 March 31 March
%
31 March 31 March
%
2007
2006
Change
2007
2006
Change
R'million
£’million
Discretionary
18 419
14 343
28.4%
1 297
1 338
(3.1%)
Non-discretionary
87 177
69 744
25.0%
6 139
6 506
(5.6%)
Total
105 596
84 087
25.6%
7 436
7 844
(5.2%)
R’million
31 March 31 March
2007
2006
Net flows at cost over the period
Discretionary
1 065
2 799
Non-discretionary
2 316
13 957
Total
3 381
*16 756
* Includes HSBC funds acquired of R13.4 billion (R2.1 billion discretionary and R11.3 billion non-discretionary).
Outlook
South Africa
•
Market conditions were strong over the past year, encouraging many private clients to enter or remain in the stock market. This
was partly driven by the flow of funds into emerging economies, given their favourable valuation fundamentals compared to
developed economies. Although valuations can be supported by local underlying fundamentals, there are concerns that given the
record price and index levels, driven by strong performances from resource counters, the South African market remains
vulnerable to external shocks that will affect emerging economies.
•
Revenue from stockbroking advisory and execution activities is expected to increase above that of the prior year, although at a
modest rate. This is dependent on current market conditions remaining benign.
•
Revenue from portfolio management activities is expected to increase, given the base effect of higher portfolio values.
