ASSET management firms’ exposure to the equities market declined to nearly 45% from 54% as the property sector emerged as a new haven for funds under management (FUM), a report by the capital market regulator has shown.
BERNARD MPOFU
According to the Securities and Exchanges Commission of Zimbabwe’s latest capital market quarterly report for the period ending 30 June 2023, the sector remains despite resilient despite the headwinds confronting the economy.
“The sector’s exposure to the stock market declined to 44.61% from 54% recorded in March 2023. However, sector exposure to property increased to 36.77% from 34.27% recorded in March 2023,” the report says.
“There was also a marked increase in money market investments from 4.68% recorded in March 2023 to 10.59% recorded as at 30 June 2023. Increase in exposure to property and money market is largely attributable to divestment in equities. Private equity, cash/call deposits and bonds all account for the remaining 8.03% investment exposures for the asset management industry.”
The Funds Under Management (FUM) as at 30 June 2023 were ZW$14.13 trillion, representing a 472% increase from ZW$2.42 trillion reported as at 31 March 2023.
The industry FUM average for the period ended 30 June 2023 stood at ZW$565 billion, the report shows. The year-on-year comparison shows a 1 066% increase in FUM from ZWL1.21 trillion reported as at 30 June 2022.
The ZSE All-Share index was reported at 171,408.90 points up 344% as at 30 June 2023 from 38,568.48 points as at 31 March 2023.
During the second quarter of 2023, two new Collective Investments Schemes (CIS) were licensed, bringing the total number of licensed CIS to 81 up from 79 as at 31 March 2023.
In other licensing categories, there was one new Securities Investment Management Company, one new Trustee Services Company and one new securities investment advisory firm that were licensed during the quarter.
Two securities investment Advisory companies voluntarily surrendered their licences.
The total turnover for both the equities and exchange traded funds (ETFs) on the Zimbabwe Stock Exchange (ZSE) amounted to ZW$135.78 billion and ZW$493 million respectively for the quarter ended 30 June 2023.
Real estate investment trusts (REITs) recorded a total turnover of ZW$1.11 billion on the ZSE.
Financial Securities Exchange (FINSEC) recorded a total of ZW$162.05 billion worth of trades whilst, Victoria Falls Exchange (VFEX) recorded US$6.61 million from 2 230 trades that went through the foreign currency denominated exchange for the quarter ended 30 June 2023.
