TOTAL funds under management nearly dimbled to ZiG92,84 billion in the third quarter, from the previous quarter, on the back of strong performance by investment classes.
The Association of Investment Managers of Zimbabwe (AIMZ) revealed in June that 95% of about US$2 billion worth of assets under management were controlled by 10 asset managers.
The Securities and Exchange Commission of Zimbabwe (SecZim) said in The Capital Market Newsletter that funds under management includes US dollar-denominated funds.
“Total funds under management as at September 30 2024 stood at ZiG92,84 billion representing a 99,64% increase from ZiG46,50 billion recorded in the previous quarter,” SecZim said.
“The total funds under management as at September 30 2024 includes USD-denominated funds under management of US$1,76 billion, which were translated to local currency at the prevailing exchange rate. The industry average funds under management for the period ended September 30 2024 stood at ZiG3,20 billion.”
SecZim said the sector’s exposure to the stock market increased to 40,53% from 37,21% recorded in the prior quarter.
The growth was attributable to the general increase in stock prices during the quarter, as evidenced by a 90,25% increase in the Zimbabwe Stock Exchange All-Share Index.
“There was a slight decline in the sector’s property investment exposures from 45,91% reported as at June 30 2024 to 43,64% recorded as at September 30 2024,” SecZim said.
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“Money market investments marginally increased from 4,71% recorded in June 2024, to 4,72% reported on 30 September 30 2024. Investment in unquoted equities declined marginally to 3,68% from 3,91% recorded as at June 30 2024. Exposure to bonds declined from 5,38% recorded in the prior quarter to 4,97%.”
SecZim said cash/call deposits and other investments all accounted for the remaining 2,47% investment exposures for the asset management industry.
AIMZ previously noted that the undervaluation of the businesses on the listed exchanges had seen more than 50% of assets within the equity space stagnating funds under management.
