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Definition

The substantial sums of money which large institutional investors have to invest. In South Africa there are three types of institutions - pension funds, unit trusts and insurance companies. They all work in more or less the same way in that they gather small amounts of money every month from hundreds of thousands or even millions of individuals which they pool into massive lump sums. Most of this capital is then invested onto the JSE into high quality blue chip shares with sufficient volumes to comfortably accommodate their transactions. This is the enormous "weight of funds" which is constantly pressing on the best shares listed on the JSE. The ability of institutions to invest overseas is limited to some extent by exchange control regulations and so this money is forced to find a home here in South Africa - mostly on the JSE.

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