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Pension funds top $2.5bn on Zimbabwe Stock Exchange

by Moyo Roy
20 Jun 2011 at 10:56hrs | Views
ZIMBABWE'S pension funds investments on the Zimbabwe Stock Exchange are now estimated at about US$2,5 billion.

A survey by Herald Business established that between 60 and 65 percent of the investments on the bourse are controlled by pension funds.

The ZSE is valued at US$4,2 billion, excluding shares registered outside the exchange. Globally, it is valued at US$4,6 billion.

The global register includes Class A shares owned by founder-members and shares registered outside the ZSE.

The National Social Security Authority and Old Mutual are the largest fund managers on the equities market, controlling more than 70 percent of the funds.

Fund managers also have huge investments in the property sector.

Some of the top asset managers include Imara, Datvest, ABC and SED Nominees who control the remainder of the funds.

As at December 31 2009, pension fund investments on the ZSE totalled about US$2 billion when fund managers were collecting an average of US$15 million a month.

The ZSE is currently subdued and pension funds are taking advantage of the low-priced stocks to consolidate their positions.

The Confederation of Zimbabwe Industries is lobbying Government to allow pension funds to use their resources to bail out ailing companies at market value.

CZI president Mr Joseph Kanyekanye said they were targeting US$600 million from pension funds.

Finance Minister Tendai Biti also wanted to use funds from NSSA to bail out Renaissance Merchant Bank now under curatorship.

Source - Bulls and Bears