{"id":146311,"date":"2023-08-24T14:04:34","date_gmt":"2023-08-24T08:34:34","guid":{"rendered":"https:\/\/www.regenesys.net\/reginsights\/?p=146311"},"modified":"2025-11-18T13:14:16","modified_gmt":"2025-11-18T07:44:16","slug":"understanding-asisas-classification-of-collective-investment-schemes-in-south-africa","status":"publish","type":"post","link":"https:\/\/www.regenesys.net\/reginsights\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa","title":{"rendered":"Understanding ASISA&#8217;s Classification of Collective Investment Schemes in South Africa\u00a0"},"content":{"rendered":"\n<p><span data-contrast=\"auto\">When it comes to investing in South Africa, one of the key considerations for investors is choosing the right collective investment scheme. To assist investors and financial advisors in navigating the vast array of investment options, the Association for Savings, and Investment South Africa (ASISA) provides a comprehensive classification system for collective investment schemes. ASISA&#8217;s classification aims to bring clarity and consistency to the industry, helping investors make informed decisions that align with their financial goals and risk tolerance. In this article, we will explore how ASISA classifies collective investment schemes in South Africa.<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/lp.regenesys.net\/study-rbs-bcompt?utm_source=bcompt_blog&amp;utm_medium=bcompt_banner&amp;utm_campaign=study_bcompt_online&amp;utm_content=understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\"><img decoding=\"async\" width=\"800\" height=\"418\" src=\"https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2023\/08\/BCompt-3-22.webp\" alt=\"Study Bcompt Online \" class=\"wp-image-179387\" srcset=\"https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2023\/08\/BCompt-3-22.webp 800w, https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2023\/08\/BCompt-3-22-300x157.webp 300w, https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2023\/08\/BCompt-3-22-150x78.webp 150w, https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2023\/08\/BCompt-3-22-768x401.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><b><span data-contrast=\"auto\">What are Collective Investment Schemes?<\/span><\/b><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-contrast=\"auto\">Collective Investment Schemes (CIS), also known as unit trusts or mutual funds, pool money from multiple investors to invest in a diversified portfolio of assets managed by professional fund managers. A CIS allows investors to access a variety of asset classes and investment strategies without directly owning individual securities.<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><b><span data-contrast=\"auto\">ASISA&#8217;s Classification System:<\/span><\/b><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-contrast=\"auto\">ASISA classifies collective investment schemes based on two primary criteria (referred to as Tier 1 and Tier 2) and further sub-categories. <\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-contrast=\"auto\">In the first tier, ASISA considers how much of the CIS is invested in South African assets and\/or is held in foreign assets. <\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-contrast=\"auto\">South African portfolios are CISs that hold at least 60% of their assets in South African markets while they are allowed to hold up to 30% of assets outside of South Africa. An additional 10% of their assets may also be held in other African markets. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-contrast=\"auto\">Worldwide portfolios are CISs that invest both in South African markets as well as foreign markets. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-contrast=\"auto\">Global Portfolios are CIS funds that hold at least 80% of assets outside of South Africa.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-contrast=\"auto\">Regional Portfolios are the final first tier category that holds at least 80% of their assets in a specific region (such as Asia) or country (such as Germany) outside of South Africa. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ol>\n\n\n\n<p><span data-contrast=\"auto\">In the second tier, the CIS is categorised based on the asset classes the fund is invested in. The second-tier categories are Equity Portfolios, Multi Asset portfolios, Interest Bearing portfolios and Real Estate portfolios. <\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-contrast=\"auto\">Equity portfolios primarily invest in shares of listed companies, aiming to generate capital growth and potential dividends for the investors.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-contrast=\"auto\">Interest-bearing portfolios invest in various fixed-income securities, such as government bonds, corporate bonds, and money market instruments. Their focus is on generating regular income for investors.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-contrast=\"auto\">Real estate CIS portfolios invest in commercial or residential properties, providing investors with exposure to the property market.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-contrast=\"auto\">Multi-asset portfolios invest in a combination of different asset classes, such as equities, fixed income, and cash. They offer a diversified approach to suit various investor risk profiles. Retirement funds are all considered multi-asset portfolios since they are legally required to invest in a diverse range of asset classes. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li>\n<\/ol>\n\n\n\n<p><span data-contrast=\"auto\">The second-tier classifications are further classified according to subcategories which are based on the risk, strategy, sector, or term of the underlying fund investments in the CIS. Examples of sectors include &#8220;Low Equity,&#8221; &#8220;Medium Equity,&#8221; &#8220;High Equity,&#8221; &#8220;Interest Bearing,&#8221; and &#8220;Real Estate.&#8221;<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-contrast=\"auto\">Combining these criteria, ASISA creates a comprehensive classification system that helps investors easily identify and compare different collective investment schemes based on their investment objectives and risk preferences.<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/lp.regenesys.net\/study-rbs-bcompt?utm_source=bcompt_blog&amp;utm_medium=bcompt_banner&amp;utm_campaign=study_bcompt_online&amp;utm_content=understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2024\/02\/31-Jan-24_Explore-the-Diverse-Specialisations-of-a-Bachelor-of-Accounting-Science_Body-Image-1024x536.jpg\" alt=\"BSC Online\" class=\"wp-image-150675\" srcset=\"https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2024\/02\/31-Jan-24_Explore-the-Diverse-Specialisations-of-a-Bachelor-of-Accounting-Science_Body-Image-1024x536.jpg 1024w, https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2024\/02\/31-Jan-24_Explore-the-Diverse-Specialisations-of-a-Bachelor-of-Accounting-Science_Body-Image-300x157.jpg 300w, https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2024\/02\/31-Jan-24_Explore-the-Diverse-Specialisations-of-a-Bachelor-of-Accounting-Science_Body-Image.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><b><span data-contrast=\"auto\">Why is ASISA&#8217;s Classification Important?<\/span><\/b><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/h3>\n\n\n\n<p><span data-contrast=\"auto\">ASISA&#8217;s classification of collective investment schemes is critical as it helps provide transparency and clarity, helping investors understand the nature and objectives of different schemes. This allows investors to make informed decisions by selecting schemes that align with their risk tolerance and investment goals. <\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-contrast=\"auto\">The classification system can also ensure investors can appropriately diversify their investments across various asset classes and sectors to manage risk effectively.<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-contrast=\"auto\">From the fund manager\u2019s perspective, this classification system assists them in aligning with regulatory requirements, which provides consistency across the industry.<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-contrast=\"auto\">ASISA&#8217;s classification of collective investment schemes in South Africa plays a crucial role in simplifying the investment landscape for investors and financial advisors. By categorising schemes based on asset class, risk profile, and geographic focus, ASISA enables investors to choose the most suitable investment options to achieve their financial objectives. Consulting with a qualified financial advisor can also provide valuable insights and guidance in building a well-structured investment portfolio that meets individual financial goals and risk appetite.<\/span><span data-ccp-props=\"{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:257}\">&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to investing in South Africa, one of the key considerations for investors is choosing the right collective investment scheme. To assist investors and financial advisors in navigating the vast array of investment options, the Association for Savings, and Investment South Africa (ASISA) provides a comprehensive classification system for collective investment schemes. ASISA&#8217;s<\/p>\n","protected":false},"author":19,"featured_media":146313,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[1,585],"tags":[],"country":[],"class_list":{"0":"post-146311","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-a-z-topics","8":"category-business"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding ASISA&#039;s Classification of Collective Investment Schemes in South Africa\u00a0 - RegInsights<\/title>\n<meta name=\"description\" content=\"Dive into ASISA&#039;s classification of collective investment schemes. 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Discover its tiers, purpose, how it aids informed investment decisions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.regenesys.net\/reginsights\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\" \/>\n<meta property=\"og:site_name\" content=\"RegInsights\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/RegenesysBusinessSchool\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-24T08:34:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-18T07:44:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.regenesys.net\/reginsights\/wp-content\/uploads\/2023\/08\/18-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1700\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Charne Olivier\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@RegenesysB\" \/>\n<meta name=\"twitter:site\" content=\"@RegenesysB\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Charne Olivier\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\"},\"author\":{\"name\":\"Charne Olivier\",\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/#\\\/schema\\\/person\\\/37b1aec02c820663b50deb14aac2ee35\"},\"headline\":\"Understanding ASISA&#8217;s Classification of Collective Investment Schemes in South Africa\u00a0\",\"datePublished\":\"2023-08-24T08:34:34+00:00\",\"dateModified\":\"2025-11-18T07:44:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\"},\"wordCount\":724,\"commentCount\":1,\"image\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/18-1.png\",\"articleSection\":[\"A - Z Topics\",\"Business and Finance\"],\"inLanguage\":\"en-ZA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\",\"url\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa\",\"name\":\"Understanding ASISA's Classification of Collective Investment Schemes in South Africa\u00a0 - RegInsights\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/18-1.png\",\"datePublished\":\"2023-08-24T08:34:34+00:00\",\"dateModified\":\"2025-11-18T07:44:16+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.regenesys.net\\\/reginsights\\\/#\\\/schema\\\/person\\\/37b1aec02c820663b50deb14aac2ee35\"},\"description\":\"Dive into ASISA's classification of collective investment schemes. 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