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Zimnat's Farai Gwaka elected AIMZ chairman

by Staff reporter
15 Dec 2020 at 11:30hrs | Views
Zimnat Asset Management's Farai Gwaka was elected chairman of AIMZ for the coming year, taking over from ABC Asset Management's Jubelah Magutakuona, who has held the post for two terms.
 
He will be deputised by Imara Asset Management's Shelton Sibanda while committee members will be drawn from Datvest, Old Mutual Asset Management and First Mutual.
 
The association is a grouping of fund managers, who are the main investors in capital markets on behalf of varied clients. The country now has 18 licenced asset managers from 17 with the addition of Nyaradzo Asset Management.
 
Areas which the new committee will work on during its tenure include the completion of a code of conduct, which the Securities and Exchange Commission indicated would be turned into a legal instrument governing and setting the standards of the industry.  The association is also looking for independent managers to conduct a performance survey of the industry as well as a less costly way to audit unit trusts.
 
Gwaka called for increased collaboration with other capital market players, which is essential for industry growth. Recently AIMZ collaborated with the Investor Protection to launch GroWealth Survey, an initiative which seeks to revitalise unit trusts.
 
Meanwhile outgoing chair Magutakuona said the association is still engaging with the regulator and the exchange over how to value Old Mutual Plc and PPC Limited shares.

The two companies, together with Seed Co International, were suspended from trading on the Zimbabwe Stock Exchange after government intervention over an out-of-control currency crisis. Seed Co International was subsequently listed on the Victoria Fall Stock Exchange while PPC and Old Mutual are yet to list.
 
Magutakuona said that the fund managers cannot continue referencing the June 26 closing prices for the two stocks when valuing their portfolios as fundamentals had since shifted.

"As it is, we are undervaluing our portfolios because of an overvalued exchange rate." He suggested that the fund managers be allowed to reference the Johannesburg Stock Exchange prices.

Source - finx

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